Eni Farms into Chariot's Moroccan Deepwater
Italy’s Eni on March 30 agreed with UK explorer Chariot Oil & Gas to farm into the Rabat Deep Offshore exploration permits I-VI, offshore Morocco, whereby Eni will become operator with a 40% interest in the overall 10,780 km2 licence extending over water depths from 150 m to 3,500 m.
Eni describes the licence as “so far unexplored, with the prospect of finding liquid hydrocarbons”. However, both oil and gas have been found in the Atlantic margin extending to offshore Mauritania/Senegal. The Italian firm said its farm-in will help it “expand its presence in the Atlantic margin of an important region such as north Africa, in line with the company’s strategy aimed at diversifying its exploration portfolio in basins with high hydrocarbons potential.”
At completion of the farm-in, the licence will include Eni 40%, Australia’s Woodside 25%, Chariot 10% (from 50%) and Moroccan state ONHYM 25%. It is subject to partners’ and authorities’ approval.
Eni will carry both Chariot’s share of costs in a deepwater well on the JP-1 prospect, up to an agreed cap, and the latter's geological and administrative costs in the next licence period. The drilling cap is confidential, but a source said that it is “in excess of the expected drilling cost of the JP-1 well.”
Chariot said that a reservoir audit by Netherland Sewell & Associates had estimated a gross mean prospective resource of 768mn bbls for JP-1.
The UK firm says it has drill-ready Atlantic margin offshore licence interests subject to acquiring partners also in Mauritania (block C-19), Namibia and Brazil. It also has a 75% interest in the Mohammedia offshore licence, which borders the Rabat Deep Offshore licence offshore Morocco.
Chariot CEO Larry Bottomley said: “We look forward to working with [Eni] and our other partners, Woodside and ONHYM, to progress to drilling the JP-1 prospect which, subject to the relevant approvals, well planning and securing a drill rig, we anticipate to occur in 2017. Despite the challenges posed by current market sentiment, Chariot’s high quality assets continue to attract industry investment.”
Mark Smedley