Chariot, Energean join forces to develop Moroccan gas projects
UK-based Chariot and leading independent oil and gas company Energean have announced a partnership on two gas projects offshore Morocco, the companies announced on December 7.
The agreement will see Energean take on the role of the operator and acquire stakes in both licences. This includes a 45% interest in the Lixus licence, which includes Anchois gas development, and a 37.5% interest in the Rissana license. In return, Energean will provide Chariot with financial backing, including an upfront payment of $10mn, a $15mn payment upon final investment decision (FID), and an $85mn gross carry for all Lixus costs up to FID.
Moroccoan state-owned ONHYM will retain its 25% stake in each licence.
Upon completion of the Anchois well, Energean holds the right to acquire an additional 10% of Chariot's equity in the Lixus licence for $850mn gross development carry to first gas (including the $85mn gross carry), $50mn 5-year zero coupon convertible loan note with a strike price of £20 adjusted down for dividends or issuance of 3mn Energean shares and 7% royalty payment on Energean's gas production revenues exceeding a base hurdle on the realised gas price.
Mathios Rigas, CEO of Energean, commented: “This is an exciting step in the next stage of our development, one that can only enhance our position as the pre-eminent independent natural gas producer listed in London. These assets are particularly attractive as we understand the core geological, commercial and political drivers of the region."
"Energean also shares our view that Anchois and its surrounding acreage offers significant upside potential and we are aligned with our plans moving forward. The new partnership is a key step in bringing the development of the Anchois field to reality," Mathios Rigas, CEO of Energean, said.
The Lixus licence covers a 1,794 km2 area from the coastline out to a water depth of 850 m.