L’objective of this agreement is to define the next steps in the implementation of a gas-industry activity, on the one hand through the supply of domestic gas and on the other hand via the establishment of a midstream partnership for Compressed Natural Gas (CNG) to meet the growing energy needs of Moroccan industry.
Chariot, which operates the Loukos license, recently completed its first drilling campaign under this license and is currently planning flow testing operations for the OBA-1 well. Loukos has other gas resources on existing unexploited sites and an attractive exploration portfolio representing additional production potential. The data collected during the drilling campaign and the recently reprocessed 2D and 3D seismic data are being integrated with a view to evaluating these potential resources.
Through this agreement, Chariot plans to sell initial volumes of up to 3 million cubic feet per day (or approximately 30 million cubic meters per year) to the entity dedicated to the marketing of Compressed Natural Gas (CNG) in the framework of a long-term gas sales agreement from potential future production at Loukos.
Additionally, Vivo Energy intends to design, finance, construct and operate a compressed natural gas (“CNG”) plant and distribution network to transport gas in the form of CNG from various sources to existing and new industrial customers in Morocco .
Finally, this CNG activity would be operated and developed by a dedicated entity in which Chariot could hold up to 49% of the shares.
The parties will now move forward on gas sales agreements, midstream and other related agreements. Although there is no guarantee that this will result in final agreements, the parties are continuing their work towards this next step and updates will be communicated in due course.
“We are delighted to extend our collaboration with Vivo Energy to onshore for the benefit of each partner and which aims to contribute to the development of the Moroccan gas network. This agreement provides the opportunity for rapid commercialization of future Loukos production and paves the way for both the development of pre-existing gas fields and the OBA-1 well as well as organic growth through future exploration. This project will be piloted in coordination with our upstream partner, ONHYM, and will initially focus on existing markets. This will also leverage our gas production to support wider development of the infrastructure required for Vivo Energy’s CNG packaging and transportation. And, as part of a possible midstream partnership, Chariot could be directly associated not only with Loukos sales, but also with gas distribution revenues in the country from a greater number of sources,” emphasizes Pierre Raillard, General Manager of Chariot Maroc.
For his part, Matthias de Larminat, Managing Director of Vivo Energy Maroc, specified that “natural gas is a key component of the energy equation aimed at decarbonizing Morocco, as defined by His Majesty the King. This project is fully in line with this ambition and responds to the needs expressed by Moroccan industrial players.
