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(Sharecast News) - Africa-focussed energy company Chariot announced on Monday that, along with Morocco's Office National des Hydrocarbures et des Mines (ONHYM), it has agreed key principles for long-term gas sales from the Anchois Gas Project with the Office National de l'Electricité et de l'Eau Potable (ONEE).
The AIM-traded firm said Anchois is located within the Lixus offshore licence, in which it holds a 75% interest and operatorship, alongside ONHYM, which holds a 25% interest.
Sales of up to 0.6 billion cubic metres of gas per year, or 60 million standard cubic feet per day, were agreed on a take-or-pay basis for a minimum of 10 years, with gas to be delivered via the Maghreb-Europe Gas Pipeline.
Chariot said the deal secured direct, domestic supply for Morocco's existing and potential longer term gas power plant infrastructure.
The framework and timetable were in place to conclude the gas sales agreement, the board added.
It said that, with the preliminary key principles now agreed, the parties would continue discussions regarding Anchois with a view of concluding the binding gas sales agreement.
Whilst there was no guarantee that the principles would be turned into a fully termed gas sales agreement, Chariot said the parties were progressing with the next stage of documentation.
"This is a notable step forward for us in our journey towards gas production and underpins the project development plan and financing," said chief executive officer Adonis Pouroulis.
"I would like to thank ONEE and ONYHM for their ongoing support, and we look forward to continuing to work together to bring this important natural gas supply onstream and into the Moroccan market as quickly as possible."
At 1408 GMT, shares in Chariot were down 0.57% at 17.35p.
Reporting by Josh White for Sharecast.com.
