Gas: Chariot Limited seals an agreement with Vivo Energy

Gas: Chariot Limited seals an agreement with Vivo Energy
Gas: Chariot Limited seals an agreement with Vivo Energy

Chariot Limited, the transitional energy group focused on Africa, announced on Monday that it had entered into an agreement with Vivo Energy relating to the potential future commercialization of natural gas from the “Loukos Onshore” license in Morocco. The British operator has 75% of this license compared to 25% for the National Office of Hydrocarbons and Mines (ONHYM).

This agreement signed with Vivo Energy will thus allow “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 the Compressed Natural Gas (CNG) to meet the growing energy needs of Moroccan industry”, says Chariot.

The gas operator has also completed its first drilling campaign under this license and is currently planning flow test 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.

Chariot expects to sell initial volumes of up to 3 million cubic feet per day (or approximately 30 million m3 per year) to the entity dedicated to the marketing of Compressed Natural Gas (CNG) as part of a long-term gas sales agreement from the potential future production of Loukos. For its part, 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.

EMG

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