Chariot Limited signs partnership with Energean for offshore gas development

Chariot Limited (AIM: CHAR), a transitional energy group with a focus on Africa, has announced the signing of Partnership Agreements with Energean plc (LON: ENOG), a global energy company. These agreements involve the development of the Lixus Offshore licence, which includes the Anchois gas development project, and the Rissana Offshore licence in Morocco.

Partnering for Energy Transition and Growth

The partnership is a strategic move to provide funding and operational expertise for Chariot and the Anchois project. Energean, a FTSE 250 company with a track record in offshore gas projects, will take over as the operator for the development of Anchois, leveraging their experience to accelerate growth and exploration in the Lixus and Rissana licences.

Project Development at Anchois

The co-development plan for Anchois includes drilling an additional well and conducting a gas flow test in 2024. The objectives are to evaluate deeper sands, optimize the development scheme, and provide a future producer well. The expansion of the offshore development plan aims to accommodate significantly higher production.

Key Deal Terms and Expansion Plans

Under the terms, Energean acquires interests in both Lixus and Rissana licences and assumes operatorship. Chariot retains substantial interests in both licences, with ONHYM maintaining a stake. Chariot will receive upfront and deferred consideration, including a full carry to first gas.

Comments from Industry Leaders

Dr Leila Benali, Minister of Energy Transition and Sustainable Development, and Mrs Amina Benkhadra, General Director of ONHYM, lauded the agreement for its potential to monetize Morocco’s resources and contribute to the country’s energy strategy. Mathios Rigas, CEO of Energean, emphasized the fit of these assets with their portfolio and the potential for supply to other markets. Adonis Pouroulis, CEO of Chariot, highlighted Energean’s track record and aligned vision in optimizing the project’s fundamentals.

Implications for the Energy Sector

This partnership between Chariot and Energean represents a significant step in Morocco’s energy sector, potentially unlocking additional resources and upscaling production. The development of the Anchois field and further exploration are key to realizing Morocco’s energy potential and contributing to the transitional energy landscape.