Chariot inks initial deal with 'leading' energy group

Africa-focussed transitional energy company Chariot has signed a memorandum of understanding with a “leading” international energy group, it announced on Thursday.

The AIM-traded firm said the agreement related to the key terms of gas offtake and partnering between the parties on the Anchois gas development within the Lixus licence, offshore Morocco.

It said the key terms of the future gas sales agreements would be for around 40 million standard cubic feet per day for up to 20 years, on a take-or-pay principle, to underpin the development.

In addition, an agreed framework process had been launched to establish a long-term partnership.

The parties would progress discussions with a view to signing final agreements to implement the Anchois Gas Development with targeted final investment decision in 2022, and first gas in 2024.

“Ahead of our highly-anticipated Anchois gas appraisal well in December, I am very pleased to announce this memorandum of understanding on gas sales and partnering,” said chief executive officer Adonis Pouroulis.

“Along with the recent high international gas prices, this agreement clearly demonstrates that there is significant demand to underpin the Anchois Gas Development.

“This agreement will help expedite the development of this value accretive gas project, for the benefit of all stakeholders.”

At 1603 BST, shares in Chariot were up 2.71% at 7.7p.