Morocco has formally converted the National Office of Hydrocarbons and Mines (ONHYM) into a joint-stock company, marking a major step in the country’s effort to modernize state-owned enterprises and attract new sources of investment.

The royal decree formalizing the change was published in the Official Gazette. The company’s initial share capital, whose value has not been disclosed, is fully owned by the Moroccan state.

The move concludes a reform process launched about a year ago and gives ONHYM greater financial and operational flexibility. As a joint-stock company, ONHYM can establish subsidiaries, access financing tools previously unavailable to it, including venture capital and structured borrowing, and expand operations beyond Morocco’s borders.

Energy Transition Minister Leila Benali said the conversion marks the start of a broader overhaul of Morocco’s public sector. She stressed that the change does not amount to privatization, even as the government plans to gradually open part of the company’s capital to private investors while maintaining majority voting control.

Gas pipeline project drives reform

The restructuring comes as Morocco advances one of Africa’s most ambitious energy infrastructure projects: the Africa-Atlantic gas pipeline.

The proposed 6,900-kilometer pipeline will link Nigeria and Morocco through 13 African countries. Estimated to cost about $25 billion, the project is expected to strengthen regional energy integration and expand access to natural gas across West Africa.

To support the development, Morocco and Nigeria’s national oil company, NNPC Limited, plan to establish a dedicated project company. According to comments by ONHYM Chief Executive Amina Benkhadra cited by Reuters, the intergovernmental agreement and final investment decision are expected later this year.

The project will be developed in three sections, a structure intended to simplify financing and construction.

Earlier this year, reports suggested ONHYM was preparing its first fundraising exercise following its conversion into a joint-stock company. However, a source familiar with the matter said that any capital raising related to the pipeline would likely be carried out by the dedicated project company rather than ONHYM itself. Details on the size, timing and structure of any fundraising have yet to be announced.

Part of broader state-sector overhaul

ONHYM is expected to be the first of roughly 50 Moroccan public entities to adopt joint-stock company status as part of a wider government reform program.

Officials say the initiative aims to improve governance standards, strengthen operational efficiency and diversify funding options for state-owned commercial enterprises.

Founded in 2005 through the merger of the Bureau de Recherches et de Participations Minières (BRPM) and the Office National de Recherches et d’Exploitations Pétrolières (ONAREP), ONHYM oversees Morocco’s oil, gas and mineral resource development, excluding phosphates.

For more than two decades, the agency operated under a public establishment framework that limited its ability to create subsidiaries, raise project-level financing and pursue certain international business activities.

The conversion to a joint-stock company removes many of those restrictions while preserving state ownership.

The reform builds on an institution that already has extensive experience managing exploration partnerships and geological data accumulated over decades. Rather than creating a new organization, Morocco is reshaping an existing one to better compete for investment and finance large-scale projects in an increasingly complex global energy market.