twitter Facebook linkedin acp

Chariot plans to sell initial volumes of up to 3 mmscfd for an upcoming CNG plant that Vivo Energy has in mind. (Image source: Adobe Stock)

The Loukos field onshore Morocco can be tapped for a gas-to-industry set up, thanks to a Heads of Terms agreement between the license's operator Chariot Limited and pan-African fuel distributor Vivo Energy 

This will positively impact the growing industrial energy needs of the region through domestic gas commercialisation and the creation of a midstream compressed natural gas (CNG) partnership. "Natural gas is a key component of the energy equation aimed at decarbonising Morocco, as defined by His Majesty the King. This project fully aligns with this ambition and meets the needs expressed by Moroccan industrial stakeholders," said Matthias de Larminat, Vivo Energy Maroc's managing director

Vivo Energy's pan-African presence has strengthened even more since its recent acquisition of Engen from Petronas

Unlocking Loukos potential

Depending on Loukos yield, Chariot plans to sell initial volumes of up to 3 mmscfd for an upcoming CNG plant that Vivo Energy has in mind. The company wishes to design, build and operate the plant as a virtual distribution network to transport natural gas in Morocco. A special purpose vehicle (SPV), which leaves scope for a 49% investment from Chariot, will be deployed to bring forth the initiative. 

With the first drilling campaign completed on Loukos, Chariot is currently focusing on flow test operations at the OBA-1 well. Reprocessed 2D and 3D seismic data that resulted from the drilling suggests further gas resources in existing undeveloped gas discoveries. These data are now being integrated to update the understanding of this resource potential. 

While Chariot enjoys a 75% share as operator of the onshore license, Morocco's national oil company National Office of Hydrocarbons and Mines - ONHYM owns another 25%.

With CNG revenue anticipated to cross around US$3.5bn by 2033, Vivio's CNG virtual pipeline infrastructure plan offers a promising prospect for Chariot. Pierre Raillard, Chariot Morocco's managing director, said, “We are delighted to extend our collaboration with Vivo Energy into the onshore, which benefits both of us as partners and aims to instigate further development of Morocco’s gas network. This agreement sets out a path where we can look to rapidly commercialise future production from Loukos, potentially unlocking the development of pre-existing gas discoveries as well as the OBA-1 well and enabling organic growth through future exploration. This will be undertaken in coordination with our upstream partner ONHYM with an initial focus on the existing markets. It will also leverage our gas production to support Vivo’s wider development of CNG virtual pipeline infrastructure and, as part of a potential midstream partnership, Chariot could have direct exposure to not only Loukos sales but also gas distribution income in country from a wider pool of sources.”