Chariot Limited, a prominent energy group, announced on June 24th the signing of a preliminary agreement with Vivo Energy for the future sale of natural gas from the onshore Loukos license in Morocco. Chariot holds a 75% stake in the Loukos license, while ONHYM owns the remaining 25%.
The primary aim of this agreement is to outline the next steps in establishing a gas-to-industry business. This will involve supplying domestic gas and setting up a midstream partnership for Compressed Natural Gas (CNG) to meet the rising energy demands of Morocco’s industrial sector.
Chariot, the operator of the Loukos license, has recently completed its initial drilling campaign and is currently planning flow tests for the OBA-1 well. Loukos hosts additional untapped gas resources and offers an attractive exploration portfolio with significant production potential. Data gathered from the drilling campaign, alongside recently reprocessed 2D and 3D seismic data, are being integrated to assess these potential resources.
Vivo Energy, a leader in fuel and lubricant distribution, operates through its subsidiary Vivo Energy Maroc, managing a network of over 400 service stations that cater to various industrial sectors.
Key terms of the agreement:
- Initial gas volumes: Chariot plans to sell up to 3 million cubic feet of gas per day (approximately 30 million cubic meters per year) to the entity responsible for CNG commercialization under a long-term gas sales agreement from Loukos’ potential future production.
- CNG infrastructure: Vivo Energy intends to design, finance, build, and operate a CNG plant and a distribution network to transport CNG from various sources to both existing and new industrial clients in Morocco.
- Joint venture: The CNG operation will be managed by a dedicated entity, in which Chariot could hold up to 49% ownership.
Pierre Raillard, Managing Director of Chariot Morocco, expressed enthusiasm about the extended collaboration with Vivo Energy, highlighting the mutual benefits and the positive impact on Morocco’s gas network development.
Matthias de Larminat, Managing Director of Vivo Energy Maroc, emphasized the importance of natural gas in decarbonizing Morocco in line with the ambitions of His Majesty the King, noting that the project perfectly meets the needs of Moroccan industrial players.
