REG - Chariot Limited - Agreement signed with Vivo Energy in Morocco

ChariotAnnouncement

24/06/2024 07:00

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RNS Number : 4841T  Chariot Limited  24 June 2024

 

 

 

24 June 2024

 

Chariot Limited

("Chariot", the "Company")

 

Gas Commercialisation Agreement signed with Vivo Energy in Morocco

 Progressing future onshore gas to industry business

 

Chariot Limited (AIM: CHAR), the Africa-focused transitional energy group, is
pleased to announce it has signed a Heads of Terms agreement with Vivo Energy
regarding future natural gas offtake from the Loukos Onshore licence
("Loukos") in Morocco (Chariot, Operator 75%, ONHYM, 25%). The aim of the
agreement is to set out the next steps for implementing a gas to industry
business through, on one side, commercialisation of domestic gas and, on the
other, the creation of a midstream compressed natural gas ("CNG") partnership
to supply Morocco's growing industrial energy needs.

 

Chariot is Operator of Loukos and having recently completed its first drilling
campaign on the licence is now planning flow test operations at the OBA-1
well. Loukos contains further gas resources in existing undeveloped gas
discoveries and an attractive exploration portfolio which together offer
additional production potential. Data gathered from the drilling campaign and
recently reprocessed 2D and 3D seismic are now being integrated to update the
understanding of this resource potential.

 

Vivo Energy, is a market-leading, pan-African retailer and distributor of
high-quality fuels and lubricants with a long-standing presence in Morocco's
petroleum products' sector. Through Vivo Energy Maroc, it operates a network
of over 400 service stations, supplying commercial and industrial customers
across a number of sectors in the Kingdom.

 

Key terms of the Agreement:

 

·      Chariot intends to sell initial volumes of up to 3 mmscfd to the
midstream CNG business under a long-term gas sales agreement from potential
future production from Loukos;

·      Additionally, Vivo Energy intends to design, fund, construct and
operate a CNG plant and virtual distribution network to transport natural gas
from a number of sources, to existing and new industrial customers in Morocco;
and

·      Finally, this midstream CNG business would be operated through a
special purpose vehicle ("SPV") in which Chariot can participate in up to a
49% interest.

 

The parties will now look to advance the gas offtake, midstream and other
related agreements. Whilst there is no guarantee that this will be turned into
fully termed documentation, the parties are progressing with this next stage
and further updates will be provided as required.

 

Pierre Raillard, Chariot Morocco Managing Director commented,

"We are delighted to extend our collaboration with Vivo Energy into the
onshore, which benefits both of us as partners and aims to instigate further
development of Morocco's gas network. This agreement sets out a path where we
can look to rapidly commercialise future production from Loukos, potentially
unlocking the development of pre-existing gas discoveries as well as the OBA-1
well and enabling organic growth through future exploration. This will be
undertaken in coordination with our upstream partner ONHYM with an initial
focus on the existing markets. It will also leverage our gas production to
support Vivo's wider development of CNG virtual pipeline infrastructure and,
as part of a potential midstream partnership, Chariot could have direct
exposure to not only Loukos sales but also gas distribution income in country
from a wider pool of sources."

 

Matthias de Larminat, Vivo Energy Maroc Managing Director, commented,

"Natural gas is a key component of the energy equation aimed at decarbonising
Morocco, as defined by His Majesty the King. This project fully aligns with
this ambition and meets the needs expressed by Moroccan industrial
stakeholders."

 

Enquiries

 

 Chariot Limited                                              +44 (0)20 7318 0450

 Adonis Pouroulis, CEO

 Julian Maurice-Williams, CFO

 Cavendish Capital Markets Limited (Nomad and Joint Broker)   +44 (0)131 220 9778

 Derrick Lee, Adam Rae

 Stifel Nicolaus Europe Limited (Joint Broker)                +44 (0) 20 7710 7760

 Callum Stewart, Ashton Clanfield
 Celicourt Communications (Financial PR)                      +44 (0) 20 7770 6424

 Mark Antelme, Jimmy Lea
 Vivo Energy (Communications)                                 +44 (0) 77 1503 6407

 Rob Foyle
 Vivo Energy Maroc (Communications)                           +212 (0) 660 414 461

 Hind Mejjati Alami

 

NOTES FOR EDITORS:

 

About Chariot

 

Chariot is an Africa focused transitional energy group with three business
streams, Transitional Gas, Transitional Power and Green Hydrogen.

 

Chariot Transitional Gas is focused on high value, low risk gas development
projects in Morocco, a fast-growing emerging economy, with a clear route to
early monetisation, delivery of free cashflow and material exploration upside.

 

Chariot Transitional Power is focused on providing competitive, sustainable
and reliable energy and water solutions across the continent through building,
generating and trading renewable power.

 

Chariot Green Hydrogen is partnering with TEH2 (80% owned by TotalEnergies,
20% by the EREN Group) and the Government of Mauritania on the potential
development of a 10GW green hydrogen project, Project Nour in Mauritania, and
are progressing pilot projects in Morocco.

 

The ordinary shares of Chariot Limited are admitted to trading on the AIM
under the symbol 'CHAR'.

 

https://chariotenergygroup.com (https://chariotenergygroup.com)

 

About Vivo Energy

 

With the vision of being the leading and most respected energy company in
Morocco, Vivo Energy Maroc, the company that distributes and markets
Shell-branded fuels and lubricants and Butagaz-branded Liquefied Petroleum
Gas, is part of a group that was founded in 2011. The Shell brand has been
present in Morocco since 1922. Vivo Energy Maroc has a fuel storage capacity
of 211,905 m³ and more than 400 service stations, many of which offer easy
payment methods with Shell Cards as well as shops. Vivo Energy Maroc has 510
employees. The company is recognized as the leader in the oil sector and is
renowned for the safety standards it establishes and upholds.

 

The Vivo Energy Group operates and markets its products in countries across
North, West, East and Southern Africa as well as in the islands of the Indian
Ocean. The extended Group has a network of over 3,900 service stations in 28
markets operating under the Engen and Shell brands and exports lubricants to a
number of other African countries. Its retail offering includes fuels,
lubricants, card services, convenience stores, restaurants, and other non-fuel
services. It provides fuels, lubricants, liquefied petroleum gas (LPG) and
chemicals to business customers across a range of sectors including marine,
aviation, mining, construction, power, transport, agriculture and
manufacturing.  It is continuing to develop innovative energy solutions to
enhance sustainability.

 

The Company employs around 6,000 people and has access to over 2.1 billion
liters of fuel storage capacity.

 

For more information about Vivo Energy, please visit www.vivoenergy.com
(http://www.vivoenergy.com/)

 

Facebook: Vivo Energy Maroc (https://www.facebook.com/VivoMaroc/)
Instagram: @VivoEnergyMaroc (https://www.instagram.com/vivoenergymaroc/)
Twitter: @VivoEnergyMaroc (https://twitter.com/VivoenergyMaroc)

 

 

 

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