Israel’s NewMed Energy announced on Tuesday the signing of an agreement with Morocco’s energy ministry and Adarco Energy for offshore natural gas exploration and production.

According to the deal, NewMed and Adarco will have 37.5% stake in the Boujdour Atlantique licence. The Moroccan government will hold the remaining 25%. The Boujdour Atlantique licence is in the southern part of the country’s offshore economic zone and was issued for a period of eight years.

“From one day to the next we are expanding our international operations and becoming a global body in every respect. We have long identified enormous potential in Morocco and today’s announcement is part of an extensive strategic move that will render NewMed Energy the leading energy body in the East Mediterranean region and North Africa. We are maximizing the value from our core assets alongside expansion of the existing business, launching natural gas exploration and production activity in other countries and developing alternative energy operations,” NewMed CEO Yossi Abu said.