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Rabat – London-based Energean is set to take the helm as the operator of two offshore licenses in Morocco, following partnership agreements with Africa-focused energy company Chariot.
The agreements mark a noteworthy entry into the Moroccan energy sector for the United Kingdom (UK) firm, positioning it strategically in the burgeoning Mediterranean market.
Under the terms of the deal, Energean secures a 45% interest in the Lixus license, home to the 18 Bcm Anchois gas development project, and a 37.5% stake in the Rissana license.
Crucially, the agreements grant Energean the operatorship of both licenses, heralding a new phase for Chariot, which retains a 30% and 37.5% interest in Lixus and Rissana, respectively, with National Hydrocarbons and Mining Office (ONHYM) maintaining a 25% stake in each license.
According to Leila Benali, Morocco’s Minister of Energy Transition and Sustainable Development, the move aligns with Morocco’s ambitious energy strategy. “We welcome Energean on these licenses as the important investments will contribute greatly to the monetization of the country’s resources,” she said.
The financial dynamics of the partnership involve Chariot receiving $10 million upon completion of the transaction, $15 million on the final investment decision (FID), and an $85 million gross carry.
In an innovative twist, Energean retains the right to acquire an additional 10% of Chariot’s equity in the Lixus license for $850 million gross development carried to first gas.
Read also: Chariot Completes Engineering, Design for Morocco’s Offshore Gas Project
This forward-thinking structure includes a convertible loan note and a royalty payment on Energean’s gas production revenues, enhancing the financial feasibility of the project.
Amina Benkhadra, General Director of Office National des Hydrocarbures et des Mines, applauded the agreement, emphasizing its role in financing and advancing the project.
“We look forward to working alongside Energean and Chariot in bringing the project to first gas,” she said.
This infusion of capital is expected to catalyze growth, enabling Chariot to upscale development and explore further prospects in the licenses.
Adonis Pouroulis, CEO of Chariot, highlights the shared vision with Energean in co-developing the Anchois project. The planned drilling of a well in the east of the Anchois field and a gas flow test in 2024 are pivotal steps toward maximizing the potential of the basin.
The partnership seeks to optimize project fundamentals, expand operations, and undertake exploratory initiatives in the Moroccan offshore region.
As the global energy landscape evolves, Energean’s CEO, Mathios Rigas, underscores the strategic significance of these assets, emphasizing their alignment with Energean’s expertise and commitment to sustainable gas production.
Chariot’s completion of the Front-End Engineering Design (FEED) stage for the Anchois development in March 2023 signals a crucial milestone, bringing the project closer to delivering its first gas.
The partnership with Vivo Energy further underscores Chariot’s commitment to developing the gas-to-industry market in Morocco, ensuring the commercialization of future gas production from Anchois.
