Rabat- Chariot Oil & Gas, a gas exploration company, has recently signed a memorandum of understanding (MoU) on the sale of gas with a “leading international energy group,” the UK-based oil company said in a statement, without revealing the identity of the buyer.
According to the MoU, a maximum of 20 years is stipulated in the protocol for gas delivery to the buyer from a daily volume of nearly 40 million cubic feet per day.
In case of difficulties from its partner, the principle of payment will enable Chariot to continue developing its project. Moreover, a framework has been outlined for establishing a long-term partnership between the two companies, according to a Chariot statement.
It is expected that negotiations will result in a final investment decision next year and production on-site will begin two years later, in 2024.
In addition to the purchase agreement, “an agreed framework process has begun to establish a long-term partnership,” the gas company said. It added, “The parties will advance discussions with a view to signing final agreements for the implementation of Anchovy gas development with a final investment decision targeted in 2022 and gas production in 2024.”
Adonis Pouroulis, the interim CEO of Chariot Oil & Gas, said, “I am very happy to announce this Memorandum of Understanding on the sale of gas and the partnership.”
He continued, “With the recent high international gas prices, this agreement clearly demonstrates that there is significant demand to support the development of Anchovy gas. It will accelerate the development of this value-creating gas project, for the benefit of all stakeholders. ” Lixus Offshore is licensed to drill anchovy wells. The British company owns 75%, while Morocco’s National Office of Hydrocarbons and Mines (ONHYM) will have 25% ownership. The area is approximately 2390 square kilometers, and the water depth ranges from 850 meters to the coastline.
In September, Chariot entered into an agreement with offshore drilling company Stena Drilling to use its drilling rig for exploration drilling of the Anchois gas field within the Lixus license, offshore Morocco.
Drilling operations are set to begin in December 2021 and are expected to take up to approximately 40 days.
Chariot’s current objectives are to confirm the amount of gas and the quality of the reservoir in order to establish feasibility for future development and potentially deepen the well to reach reserves hidden at previously unexplored depths
