Africa-focused energy company Chariot has joined forces with Vivo Energy, a pan-African retailer and distributor of high quality fuels and lubricants, develop the industrial gas market in Morocco, which will allow ffurther commercialization of future gas production from its flagship gas project located within the Lixus license offshore Morocco.
Chariot disclosed on Tuesday, May 2, 2023 that it had signed a collaboration agreement with Vivo Energy with the aim of creating a midstream joint venture that will oversee the distribution of natural gas to industrial customers in Morocco.
Peyami OvenVivo Energy Maroc MD, commented: “This partnership is critical in supporting industrials’ transition to a lower carbon energy source. The development of an industrial gas market will allow our current and potential customers to have access to an abundant and competitive source of national gas costs.
“Together with Chariot, our partnership is based on strong experience and deep knowledge of the Moroccan market and the latest gas technologies. This makes us well-positioned to provide best-in-class, fit-for-purpose energy solutions to a wide spectrum of industries in Morocco.”
According to Chariot, the goals of the partnership will be to implement a gas business in the industry in Morocco by developing the commercialization and marketing of natural gas to industrial customers. The two players will also establish a special jointly owned vehicle for the purchase, transportation and distribution of natural gas to end users.
Stan MittelmanCEO of Vivo Energy, commented: “We will work closely with Chariot to jointly leverage our position in Morocco, giving us the opportunity to offer a cleaner and more competitive energy source for our industrial customers. Further development of the country’s midstream and downstream infrastructure will also facilitate the distribution and increased use of this important long-term domestic resource as industrial gas markets continue to mature.
“We are confident that the development of the Anchois field, combined with the advancement of Morocco’s gas market, will further accelerate the country’s industrial roadmap to become a less carbon-intensive economy and support its strategy of “export”.
In addition, the companies will launch a long-term gas sales agreement for a portion of the future gas production of the anchovy development project located in the Lixus offshore license area, which contains the Anchovies gas field. This license is managed by Chariot, which holds a 75% interest, while its partner, ONHYM, holds the remaining 25%.
Adonis PouroulisCEO of Chariot, stated: “We are delighted to partner with Vivo Energy, a company that has an extensive footprint in Morocco and the African continent, to develop and provide a long-term supply of natural gas to the country’s rapidly growing industrial sector. from Morocco The significant demand for industrial gas, which this partnership will supply, further supports the commercial viability of the Anchois project.
“This agreement confirms the priority given by Chariot to the Moroccan energy market, expands our other existing sales negotiations on future extractions for gas from the Anchois gas field and establishes a collaborative partnership with one of the continent’s leading energy distributors as we continue to develop this low-risk, high-margin asset.”
FEED for the Anchois project commenced in June 2022 and initial development covers three subsea producing wells, including the Anchois-2 well drilled with Stena Drilling. Stena Don platform in 2022, with multi-zone completions to enable gas recovery through multiple stacked sands.
Chariot signed a pipeline connection agreement last year with the Office National des Hydrocarbures et des Mines (ONHYM), ensuring access to Gas pipeline Maghreb Europe (GME) in Morocco to deliver the gas to anchor gas buyers.
Pierre Railardthe CEO of Chariot Morocco, said: “A key part of our strategy in Morocco is to promote energy self-sufficiency and be a catalyst for growth and we are very pleased to work together to deliver this important national resource directly to the country’s gas-hungry industrial sector.”
