International hydrocarbon exploration and production company Energean entered into an agreement to become a partner in Chariot’s Moroccan assets, a move that is expected to jumpstart the development of the Anchois gas field, announced Chariot on Monday.
Energean will acquire a 45% stake in the Lixus license and will take on the role of operator. The company will also have the option to increase its stake to 55% and will hold a 37.5% stake in Rissana.
Energean will make an upfront cash payment of $10 million to Chariot and will also cover Chariot’s share of pre-final investment decision (FID) costs, which can be recovered from future revenues and is valued at up to $85 million.
Mathios Rigas, Energean’s CEO, described the agreement as “an exciting step in the next stage of our development, one that will further solidify our position as the leading independent natural gas producer listed in London.”
This funding will support the drilling of an appraisal well in 2024 at Anchois and the acquisition of seismic data for Rissana. The Anchois gas field is currently estimated to hold 18 billion cubic meters of gas, and the appraisal well aims to explore an additional potential of 11 bcm.
Energean will have the option to acquire an additional 10% stake in Lixus for a gross carry of $850 million to first gas, a $50 million zero coupon convertible note, and a 7% royalty from Energean’s gas revenues.
“We welcome Energean on these licenses as the important investments will contribute greatly to the monetization of the country’s resources and our ambitious energy strategy,” said Moroccan Minister of Energy Transition Leila Benali.
Office National des Hydrocarbures et des Mines (ONHYM) also welcomed the agreement. The state-owned company holds a 25% stake in both Chariot licenses.