Woodside signs farm-in agreement with Chariot Oil & Gas for offshore block in Morocco

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Image credit: www.woodside.com.au

Australia’s exploration and production company Woodside has signed an agreement with Morocco’s Chariot Oil & Gas Investments to farm-in to the prospective Doukkala Basin offshore north western Morocco.

Image credit: www.woodside.com.au
Image credit: www.woodside.com.au

According to the ASX announcement by Woodside, the agreement, which is subject to required government approvals, will see the company acquire initial 25% participating interest in the Rabat Deep Offshore permits I-VI, with an option to acquire an additional 25% and operatorship in these permits for a capped well carry obligation.

These undrilled permits are 10,782 km2 in area and water depths range from 150 to 3600 metres.

Woodside CEO Peter Coleman said the farm-in provided an opportunity to secure a large acreage footprint in an emerging petroleum province that is prospective for both oil and gas.

“Exploration in this basin aligns with our strategy to secure new international growth opportunities in frontier and emerging basins characterised by materiality and quality,” said Mr Coleman.

“This opportunity has been supported by Woodside’s disciplined approach to studying regional petroleum systems, including the Atlantic margins, and is a good fit with our core capabilities in deep-water exploration and production.”

According to the article on Oil Review, Chariot Oil & Gas will remain the operator with a 50% equity interest and Office National des Hydrocarbures et des Mines (ONHYM) will retain a 25% carried interest.

“We are pleased to have signed this farm-out agreement with Woodside and look forward to working with them in order to identify a priority well location for this giant prospect. Woodside is an experienced basin opener, firmly focused on large scale projects with material production potential,” said Larry Bottomley, CEO of Chariot Oil & Gas.

“This transaction is an endorsement of Chariot Oil & Gas’ view on the opportunity and also our strategy to mitigate risk and introduce levered partners in order to validate and finance the development of our assets. As well as progressing our Moroccan acreage we will be using the funds from this farm-out to expedite our work programmes throughout the portfolio.”