Chariot Limited and Vivo Energy have sealed a Heads of Terms agreement to commercialize the Loukos Onshore license in Morocco.
The move marks a significant step towards developing a natural gas infrastructure in Morocco. As operator of the Loukos Onshore license, Chariot plans to supply up to 3 MMcfd of natural gas to Vivo Energy’s midstream CNG business under a long-term agreement. Vivo Energy, in turn, will design, fund, and operate a CNG plant and distribution network to serve industrial customers across Morocco.
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Sales and distribution
This partnership aims to capitalize on Loukos’s gas resources, including undeveloped discoveries and exploration potential. Recent data from drilling campaigns and seismic studies are enhancing understanding of the resource’s scope. The agreement also includes the creation of a special purpose vehicle (SPV), where Chariot could hold up to a 49% interest, facilitating direct participation in gas sales and distribution income.
Pierre Raillard, Chariot Morocco’s Managing Director, highlighted the collaboration’s potential to accelerate the commercialization of Loukos’s gas production, support Morocco’s gas network development, and foster organic growth through exploration.
This initiative is a strategic move towards meeting Morocco’s industrial energy needs while leveraging Chariot’s partnership with ONHYM for upstream activities. Overall, the agreement sets a framework for advancing gas offtake and midstream operations, with further updates expected as the partnership progresses.
