Energean's Potential Exit from Morocco's Gas Exploration Scene

Friday 08 November 2024 - 15:10

Energean’s CEO has recently made a statement, widely reported by international media, suggesting the company’s possible exit from Morocco. He explained, “We drilled an offshore well in Morocco, but the results did not meet our expectations. Therefore, I do not foresee any further development, at least not from our side.” If this information is confirmed, it could signal Energean’s definitive withdrawal from Morocco’s gas exploration sector.

This announcement implies that the gas volumes obtained from the well were lower than what the company had anticipated, potentially making the project viable only for smaller operators with more modest volume expectations.

In April, Energean had expanded its presence in the Mediterranean region by entering Morocco, striking a partnership with British firm Chariot to take over operations on two offshore licenses, including the Lixus offshore license, which hosts the Anchois gas development project. Energean’s 45% stake in the Lixus license and its role as operator were established in collaboration with Chariot (30%) and ONHYM (25%).

Following this, the Stena Forth drilling vessel was contracted to drill one well, with an option for an additional one. The excitement surrounding the project was high. Before drilling began, Energean’s initial estimates projected over 1 trillion cubic feet (tcf) of gas potential. The company was hopeful for a rapid development process leading to a final investment decision. However, the preliminary results of the Anchois-3 well did not meet expectations, dampening hopes for the project.

“The Anchois East drilling campaign assessed all target reservoirs, but the results did not align with expectations, nor did they match the excellent outcomes of the previous Anchois-2 well. The primary exploration targets were unsuccessful,” stated Adonis Pouroulis, CEO of Chariot.

Despite these setbacks, Energean had announced in June the completion of a deal to sell its assets in Egypt, Italy, and Croatia to a Carlyle International Energy Partners-managed entity. This move marked the company’s decision to refocus entirely on the once-promising Anchois gas field in Morocco.

If these latest developments are confirmed, Energean’s exit could reshape the future of Morocco’s offshore gas exploration.