Chariot Limited announces the signing of an agreement with Vivo Energy relating to the potential future commercialization of natural gas from the Loukos Onshore license. The agreement aims to develop a gas-industry business by supplying domestic gas and establishing a midstream partnership for compressed natural gas (CNG), in order to meet the growing energy needs of Moroccan industry.
Chariot, which operates the Loukos license, has completed its first drilling campaign and is preparing to test the flow rate of the OBA-1 well. Loukos has other untapped gas resources and a promising exploration portfolio, providing additional production potential. Data collected during drilling, as well as reprocessed 2D and 3D seismic data, are being analyzed to evaluate these potential resources.
Chariot plans to sell up to 3 million cubic feet per day (approximately 30 million cubic meters per year) of compressed natural gas (CNG) to a dedicated entity under a long-term sales agreement, sourced from the potential future production of Loukos.
Vivo Energy, for its part, plans to design, finance, build and operate a CNG plant and a distribution network to transport gas in the form of CNG to industrial customers in Morocco. This CNG activity will be operated by a dedicated entity, in which Chariot could hold up to 49% of the shares.
The parties will work on gas sales agreements, midstream infrastructure and other related agreements, although final agreements are not guaranteed.
The general director of Chariot Maroc, Pierre Raillard, explained that “this agreement offers the opportunity for rapid commercialization of the future production of Loukos and opens the way both to the development of pre-existing gas deposits and to the OBA-1 well as well as organic growth through future explorations.” He also added that “this project will be piloted in coordination with our upstream partner, ONHYM, and will initially focus on existing markets. This will also make it possible to take advantage of our gas production to support further development. of the infrastructure necessary for the packaging and transportation of Vivo Energy’s CNG”.
For his part, Matthias de Larminat, general manager of Vivo Energy Maroc, noted that “natural gas is a key component of the energy equation aimed at decarbonizing Morocco, as defined by His Majesty the King”. This project, according to him, is fully in line with this ambition and responds to the needs expressed by Moroccan industrial players.
