Upstream licences in Morocco are awarded under concession terms which are governed by the 2003 hydrocarbon law and 2014 petroleum agreement. The application and awarding of licences are done on an ad hoc basis. Royalty rates vary by location and oil/gas, with an initial volume exempt from royalty. Corporate income tax is levied at 31% with a 10 year tax holiday. State-owned L'Office national des Hydrocarbures et des Mines (ONHYM) participates in an exploration agreement or commercial discovery development with an equity stake of up to 25%.