Chariot Limited has signed an agreement with Vivo Energy for the future marketing of natural gas extracted from the Loukos Onshore license in Morocco. This agreement, explains the magazine Challengeis intended to strengthen the onshore gas industry in Morocco and aims to supply the domestic market with gas and to develop a midstream partnership for Compressed Natural Gas (CNG), thus meeting the growing needs of the Moroccan industry.
Chariot, which owns 75% of the Loukos license (ONHYM owning the remaining 25%), recently completed its first drilling campaign and is preparing to test the flow rate of the OBA-1 well. The Loukos license also has unexploited gas resources and additional production potential. Seismic and drilling data are currently being analyzed to evaluate these potential resources.
Vivo Energy has a network of more than 400 service stations in Morocco. The agreement between Chariot and Vivo Energy includes several key initiatives. These are initial gas sales: Chariot will sell up to 3 million cubic feet per day (around 30 million cubic meters per year) to an entity dedicated to marketing CNG.
There is also talk of GNC infrastructure. Vivo Energy will design, finance, build and operate a CNG plant and distribution network to transport the gas to industrial customers.
Chariot could hold up to 49% of the shares of the entity dedicated to the operation and development of the GNC activity.
Both sides are currently working on gas sales agreements and other related agreements, although there is no guarantee of final agreements yet.
Pierre Raillard, Managing Director of Chariot Maroc, declared that “This agreement offers 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.
“The agreement will enable Chariot and Vivo Energy to meet Morocco’s energy needs while supporting the development of the infrastructure necessary for the packaging and transportation of CNG. we read.
By Lamia Elouali
06/24/2024 at 9:09 p.m.
