Chariot, a British energy company, has announced the signing of a key agreement with Vivo Energy, a leading retailer and distributor of fuels and lubricants in Africa. The agreement focuses on the future sale of natural gas from the Loukos Onshore license in Morocco, marking a significant step towards meeting the country's industrial energy needs.

This agreement outlines the terms for establishing a gas-to-industry business through the commercialization of domestic gas. A key component of this initiative is the creation of a midstream compressed natural gas (CNG) partnership, which will supply Morocco’s growing industrial sector. This collaboration aims to leverage Chariot's recent drilling success and Vivo Energy's extensive distribution network.

Chariot has recently completed its first drilling campaign on the Loukos license and is now gearing up for flow test operations at the OBA-1 well. The company's statement highlights that Loukos holds substantial gas resources in undeveloped discoveries and boasts an attractive exploration portfolio, which together promise significant production potential.

Under the terms of the agreement, Chariot will sell an initial volume of up to 3 million standard cubic feet per day (mmscfd) of natural gas to the midstream CNG business. This will be facilitated through a long-term gas sales agreement, contingent on future production from the Loukos site.

Vivo Energy, on its part, plans to design, fund, construct, and operate a CNG plant and virtual distribution network. This infrastructure will transport natural gas from multiple sources to both existing and new industrial customers across Morocco. This initiative is poised to significantly bolster Morocco’s industrial energy supply, ensuring a reliable and sustainable source of natural gas.

The partnership between Chariot and Vivo Energy is expected to advance rapidly, with both parties working on finalizing gas offtake, midstream, and other related agreements. This collaboration not only underscores the potential of the Loukos Onshore license but also represents a strategic move to enhance Morocco's energy landscape, supporting its industrial growth and energy diversification goals.

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