Chariot Limited (AIM: CHAR), the transition energy group focused on Africa, is pleased to announce the signing of an agreement with Vivo Energy regarding the potential future marketing of natural gas from the Loukos Onshore license (“Loukos”) in Morocco (Chariot, operator 75%, ONHYM, 25%). The purpose of this agreement is to define the next steps in implementing a gas-industry activity, on one hand through the supply of domestic gas and on the other hand through the establishment of a midstream partnership for Compressed Natural Gas (CNG) to meet the growing energy needs of the Moroccan industry.
Chariot, which operates the Loukos license, has recently completed its first drilling campaign under this license and is currently planning the flow testing operations of the OBA-1 well. Loukos has other untapped gas resources at existing sites and an attractive exploration portfolio representing additional production potential. The data collected during the drilling campaign and the recently reprocessed 2D and 3D seismic data are being integrated to assess these potential resources.
Vivo Energy is a pan-African group that markets and distributes high-quality fuels and lubricants. It is a market leader and has a long-standing presence in the petroleum products sector in Morocco. Vivo Energy Morocco operates a network of over 400 service stations that supply commercial and industrial customers in various sectors across the Kingdom.
**Key terms of the agreement:**
– Chariot plans to sell initial volumes of up to 3 million cubic feet per day (or approximately 30 million cubic meters per year) to the dedicated entity for the marketing of Compressed Natural Gas (CNG) under a long-term gas sales agreement from the potential future production of Loukos;
– Additionally, Vivo Energy intends to design, finance, construct, and operate a compressed natural gas (“CNG”) plant and a distribution network to transport gas in the form of CNG from various sources to existing and new industrial customers in Morocco;
– Finally, this CNG activity would be operated and developed by a dedicated entity in which Chariot could hold up to 49% of the shares.
The parties will now move forward with gas sales agreements, midstream agreements, and other related agreements. Although there is no guarantee that this will result in definitive agreements, the parties are continuing their work towards this new stage, and updates will be communicated in due course.
**Comment from Pierre Raillard, CEO of Chariot Morocco:**
*”We are delighted to extend our collaboration with Vivo Energy onshore for the benefit of each partner and aimed at contributing to the development of the Moroccan gas network. This agreement offers the opportunity for a rapid marketing of the future production of Loukos and paves the way for the development of both pre-existing gas fields and the OBA-1 well, as well as organic growth through future explorations. This project will be led in coordination with our upstream partner, ONHYM, and will initially focus on existing markets. It will also leverage our gas production to support a broader development of the infrastructure necessary for the conditioning and transportation of CNG by Vivo Energy. And, as part of a potential midstream partnership, Chariot could be directly involved not only in the sales of Loukos but also in the revenues from gas distribution in the country from a greater number of sources.”*
**Comment from Matthias de Larminat, CEO of Vivo Energy Morocco:**
*”Natural gas is a key component of the energy equation aimed at decarbonizing Morocco, as defined by His Majesty the King. This project fully aligns with this ambition and meets the needs expressed by Moroccan industrial players.”*