Africa-focused energy company Chariot has signed a memorandum of understanding (MOU) with an undisclosed energy group to unlock the Anchois gas development potential, offshore Morocco.
Chariot announced the signing on Thursday, however, it did not reveal the identity of the energy group. The agreement deals with the key terms of gas offtake and partnering in respect of the Anchois gas development within the Lixus licence, offshore Morocco.
The licence covers an area of approximately 2,390 square kilometres, located 30 kilometres north of Chariot’s existing Moroccan acreage, with water depths ranging from the coastline to 850 metres.
Adonis Pouroulis, the acting CEO of Chariot, commented: “Ahead of our highly anticipated Anchois gas appraisal well in December I am very pleased to announce this MOU on gas sales and partnering. Along with the recent high international gas prices, this agreement clearly demonstrates that there is significant demand to underpin the Anchois gas development. This agreement will help expedite the development of this value-accretive gas project, for the benefit of all stakeholders.”
The firm hired the Stena Drilling-owned Stena Don rig for the Anchois appraisal well in September and the drilling operations are expected to take up to approximately 40 days. The company signed a binding letter of intent with oilfield services provider Halliburton for services on its Anchois gas appraisal well also in September this year.
The company stated that the main terms of the future gas sales agreements will be for approximately 40 mmscf/d. This will be for a period of up to 20 years on a take or pay principle, to underpin the development. Furthermore, it was confirmed that an agreed framework process was initiated to establish a long-term partnership.
Chariot confirmed that discussions are expected to progress to sign final agreements with the energy group, targeting a final investment decision (FID) for the Anchois gas development in 2022, while the first gas would be expected in 2024.