Morocco: Chariot & Vivo Energy agree on terms of gas commercialization

Chariot energy Company has signed an agreement with Vivo Energy Maroc firm on future natural gas offtake from the Loukos Onshore license in which the British company holds 75% stake, while Moroccan National Office of Hydrocarbons and Mines (ONHYM) has 25 %.

In a press release issued Monday, Chariot said the aim of the agreement is to set out the next steps for implementing a gas to industry business through the commercialization of domestic gas and the creation of a midstream compressed natural gas (“CNG”) partnership to supply Morocco’s growing industrial energy needs.

Under the agreement, Chariot pledges to sell initial volumes of up to 3 mmscfd to the midstream CNG business under a long-term gas sales agreement from potential future production from Loukos.

For its part, Vivo Energy pledges to fund, construct and operate a CNG plant and virtual distribution network to transport natural gas from a number of sources, to existing and new industrial customers in Morocco.

The signatories also agree that the midstream CNG business (gas storage, processing & transportation) would be operated through a special purpose vehicle (“SPV”) in which Chariot can participate in up to a 49% interest.

Commenting the deal, Pierre Raillard, Chariot Morocco 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 contribute to the development of Morocco’s gas network”.

“Partnering with Vivo Energy to deliver this gas to industry creates additional scope for the future production from Anchois. 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 be working together to deliver this important domestic resource directly into the country’s gas-hungry industrial sector,” Pierre Raillard said.

Matthias de Larminat, Vivo Energy Maroc Managing Director, said: “Natural gas is a key component of the energy equation aimed at supporting Morocco’s decarbonization efforts.

Stan Mittelman, Vivo Energy CEO, on his part said “further development of the country’s mid and downstream infrastructure will also facilitate the distribution and increased use of this important domestic resource over the longer term as the 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 towards becoming a less carbon-intensive economy, and supporting its export strategy.”

Peyami Oven, Vivo Energy Maroc MD, commented: “This partnership is central to support industrials’ transition to a lower carbon source of energy. Development of a gas-to-industry market will enable our existing and potential customers to have access to an abundant and cost-competitive source of domestic gas. Together with Chariot, our partnership is built on strong expertise and a deep knowledge of the Moroccan market and the latest gas technologies. This makes us well positioned to offer best-in-class and fit-for-purpose energy solutions to a large spectrum of industries in Morocco.”

Vivo Energy, a pan-African retailer and distributor of high-quality fuels and lubricants has a long-standing presence in Morocco’s petroleum products sector, operating a network of over 400 service stations and supplying commercial and industrial customers across a number of sectors in the Kingdom.