British energy company Chariot announced that it and Morocco’s National Office of Hydrocarbons and Mines (ONHYM) reached an agreement with the National Office for Electricity and Potable Water (ONEE) on key principles for long-term gas sales from the Anchors Gas Project.
“With the preliminary key principles now agreed, the Parties will continue discussions regarding Anchors with a view of concluding the binding gas sales agreement,” a press release from the company said.
The key principles include sales of up to 0.6 billion cubic meters of gas per year for a minimum of 10 years on a take-or-buy basis, which will be delivered through the Maghreb-Europe gas pipeline.
Take or buy clauses require the buyer to pay for agreed-upon quantities even if they are unable to receive the supply, thus guaranteeing a source of income for the seller.
The agreement also “secures direct, domestic supply for Morocco’s existing and potential longer-term gas power plant infrastructure.”
Finally, the parties agreed to put in place a framework and timetable to conclude gas sales agreements “Agreeing to these key principles is indicative of our commitment to the development of the Anchors gas field,” General Director of ONHYM Amina Benkhadra was quoted as saying. “We are pleased to be working in partnership with Chariot on this asset which has the potential to deliver a range of benefits to the country.”
The new project is seen as an important source of domestic natural gas that will initially “feed directly into ONEE’s power plants via the Maghreb-Europe Gas Pipeline,” ONEE General Director Abderrahim El Hafidi added. “This is a notable step forward for us in our journey towards gas production and underpins the project development plan and financing,” CEO of Chariot Adonis Pouroulis said.
Chariot holds a 75% interest and operatorship in the offshore project, with ONHYM holding the other 25%.
In June, the British company awarded initial feasibility studies to French oilfields company Schlumberger and Luxembourg-based engineering firm Subsea7. The deal to transport gas via the Maghreb-Europe pipeline was inked with ONHYM in September, allowing Chariot to reach several new potential buyers.
SOURCE: Morocco news