AIM-listed Chariot Limited has signed a Heads of Terms agreement with pan-African retailer Vivo Energy, detailing future natural gas offtake terms for the Loukos Onshore project in Morocco.
Under the terms of the deal, the companies will establish a gas-to-industry business in the country, which aims to commercialize domestic gas resources to meet growing demand across the country’s industrial market. The business will be operated through a special purpose vehicle, whereby Chariot has the opportunity to participate in up to a 49% stake.
Additionally, Vivo Energy will design, fund, construct and operate a CNG plant and virtual distribution network to support the production of gas from a variety of projects – the primary being the Loukos license. Chariot – operator of the Loukos license – will initially sell volumes of three million cubic feet per day of gas to the business under a long-term gas sales agreement.
“Natural gas is a key component of the energy equation aimed at decarbonizing Morocco…This project fully aligns with this ambition and meets the needs expressed by Moroccan industrial stakeholders,” stated Matthias de Larminat, Managing Director of Vivo Energy Maroc.
The Loukos license has recently completed its first drilling campaign, with flow test operations at the OBA-1 well in preparation. Further gas resources have been identified at the license, with 2D and 3D seismic data currently being evaluated to determine resource potential.
“This agreement sets out a path where we can look to rapidly commercialize future production from Loukos, potentially unlocking the development of pre-existing gas discoveries as well as the AOB-1 wells and enabling organic growth through future exploration,” stated Pierre Raillard, Managing Director of Chariot.
