The CEO of Energean has just made a statement, relayed by foreign media, which reinforces the Kingdom’s initial hypothesis. “We drilled a well off the coast of Morocco, but the results did not match our expectations. So I don’t foresee any development, at least not on our part.” If the information is confirmed, this would mean the definitive departure of the Greek-British gas exploration company from the Kingdom.
How to interpret this new announcement? The results obtained (gas volumes) would be lower than those to which the company is accustomed or expected. They would perhaps be suitable for juniors whose managed volumes are significantly lower.
As a reminder, last April, the company strengthened its presence in the Mediterranean region through its entry into Morocco. It had sealed partnership agreements with the British Chariot to take over the role of operator on two Moroccan offshore licenses, including the Lixus offshore license, where the Anchois gas development project is located. The agreement on the Lixus offshore license offered Energean 45% of the stakes in this license – and operator status – in partnership with Chariot (30%) and ONHYM (25%).
Immediately afterwards, Stena Drilling’s Stena Forth drillship was contracted to drill one well, with the option to drill an additional well. Enthusiasm was at its peak. Before drilling began, Energean estimates indicated a potential of more than 1 trillion cubic feet (tcf) of gas. The company’s hopes were focused on a rapid progression of events leading, ultimately, to a final investment decision. But disappointment was there. The preliminary results of the Anchois-3 well drilling campaign did not confirm the pre-drilling estimate of the Anchois gas project.
“The Anchois East drilling campaign made it possible to evaluate all the target reservoirs before drilling, but the results do not correspond to expectations nor to the excellent results of the previous Anchois-2 well. The main exploration objectives have failed,” says Adonis Pouroulis, CEO of Chariot.
However, last June, Energean announced the finalization of an agreement relating to the sale of its portfolio of assets in Egypt, Italy and Croatia to an entity managed by Carlyle International Energy Partners. This transaction thus marked Energean’s decision to refocus solely on the promising (at the time) Anchois gas field, located in Morocco.
