British Chariot unveils Moroccan project results in recent report

In its audited final results for 2022, British company Chariot Oil and Gas revealed advancement in its Moroccan operations in a detailed report.

Chariot outlined how imports of gas and coal, which presently account for 70% of Morocco’s energy needs, are extremely important. 

Domestic gas from Chariot’s Anchois project could be directly supplied to the national grid and play a significant role in future efforts to rebalance the nation’s energy mix and cut emissions, explained the company.

Since the successful drilling at the beginning of 2022, the Group’s Anchois gas development offshore Morocco has made significant progress. 

In May, the transitional energy company with an eye toward Africa announced plans to form a midstream joint venture with Vivo Energy to manage the supply of natural gas to industrial customers in Morocco. 

The company also intended to set up a long-term gas sales agreement for a portion of the future gas production from the Anchois development project.

With 40 firms participating in the Anchois asset partnering process and various offers received, there has been significant industry interest. 

As a result, management is optimistic that the partnering process will be finished soon based on the advanced level of discussions, mentioned Chariot.

Based on ongoing negotiations, the Group believes that a deal would allow Chariot to receive both an upfront cash recovery payment and financing for the Group’s share of the Anchois development costs, allowing the Group to move as quickly as possible towards first gas and delivering cashflows to investors.

The engineering and design for the development have been finished, detailed negotiations with Moroccan and other gas off-takers are still ongoing, and a group of Moroccan and foreign banks has expressed their strong support for providing project debt financing.

The Company is a UK tax resident, but no tax was owed in 2022 because of taxable losses. According to the British company’s report, no tax rates were increased in Morocco or the group subsidiaries because of the same reason.