The UK-based oil and gas company will refocus its strategy and work on the Anchois gas development in Morocco.
Sarajevo – Chariot Oil & Gas is refocusing its strategy with plans to build a Moroccan gas business in response to the market upheaval related to the spread of COVID-19. The company is still seeking a Moroccan partner for the project, which will deliver gas from Anchois, a development site off Morocco’s northern Atlantic coast.
Developing a Moroccan gas business is what Chariot currently sees as the best return on its investments. The company is highly motivated to shift its focus to the North African nation, with CEO Larry Bottomley describing Morocco as one of the most attractive places to operate in the world.
The company previously pursued high risk oil exploration, mostly based in wells offshore Namibia. But the strategy has changed recently.
With the demand for oil plunging globally, Chariot is now focusing on low risk gas appraisal, which makes the coast off of Morocco ideal for the exploration. The company anticipates future developments in the area will deliver strong returns and significant cash flow.
Besides shifting its focus to Morocco, the UK-based oil explorer suggested companies across the world evolve their strategies amid the considerable changes in energy markets. The combination of the spread of COVID-19, plummeting oil prices, and global economies looking to switch to less-carbon-intensive energy sources made the change inevitable.
Chariot has already taken drastic measures. It will cut its annual running costs to around $2.5 million, from $4.5 million. The company’s board is also taking a 50% cash reduction in fees and salaries.
The company is hoping to compensate for the cuts by investing in the significant potential and quality of low-risk gas exploration in Morocco. It also hopes to benefit from the transition to natural gas as an important fuel source in the energy market.
The chief executive of Chariot has also praised Morocco’s ease of doing business as well as its growing economy.