Chariot Oil and Gas Signs Agreement with Morocco for Offshore Oil Exploration

Chariot Oil & Gas Limited, an E&P company recently announced that it has closed a deal with Morocco via Chariot Oil & Gas Investments LTD, its fully-owned local subsidiary. The deal allows the company to obtain a license for offshore oil exploration in Rabat.

The location of the license, called Rabat Deep, is beside the recently acquired Safi licenses, covering an area of 10,782 square kilometers and giving the company 16,207 square kilometers off Morocco’s shoreline, said Chariot in a released statement.

According to the agreement, the company will own and operate 75 percent of the offshore oil exploration license, and will be joined by the Office National des Hydrocarbures et des Mines, the national oil firm of Morroco, which will take part with a carried interest of 25 percent.

The agreement’s coverage spans for an initial period of three years. During that time, the company will reprocess its current 2D seismic datasets and perform a 2D seismic survey with a distance of 1,000 kilometers. When the results of the primary work program is obtained, the company may decide to go on to the next phases of the deal, which will involve 3D seismic data acquisition and an undertaking of oil exploration drilling tasks after that.

Paul Welch, Chariot’s CEO and Amina Benkhadra, ONHYM’s Director General, signed the agreement in the past week.

The CEO said that Morocco is an ideal location for oil and gas exploration. As such, he said that they are very happy to have been given the extra acreage which is set to complement and balance the company’s current assets in the region. Moreover, Welch said that with the new oil investment in land acquisition, the company already has a major holding in the highly prospective province, and they are looking forward to developing its full potential.

Morocco, which is still importing all its crude requirements, has not been explored much despite the fact that its sedimentary basins are known for their hydrocarbon potential.

Moreover, Morocco is trying to cut its imports of oil, an effort which is hurting their national budget as they try to create sources of renewable energy, such as solar.