British energy company Energean has announced the likelihood of halting its operations in Morocco after disappointing outcomes from an offshore gas exploration campaign.
The decision comes as a significant shift for the company, which had recently expanded its presence in the region through strategic agreements.
“We drilled a well offshore Morocco, but the results do not meet our expectations.
I do not foresee any development, at least not from our side,” stated Energean’s CEO, highlighting the lack of viable prospects for further investment.
Earlier this year, Energean had solidified its foothold in the Mediterranean region by entering the Moroccan market.
In April, the company signed strategic partnership agreements with British firm Chariot, assuming the role of operator for two offshore licenses, including the Lixus offshore license.
The Lixus project encompasses the Anchois gas development, which had been a focal point of Energean’s Moroccan operations.
Under the terms of the Lixus license agreement, Energean held a 45% stake as the operator, while Chariot and Morocco’s National Office of Hydrocarbons and Mines (ONHYM) retained 30% and 25% stakes, respectively. This partnership had been seen as a promising move to advance Morocco’s offshore energy sector.
Energean’s potential withdrawal marks a setback for the country’s efforts to boost offshore energy exploration.
The move underscores the challenges faced by energy companies in developing offshore resources in a region where outcomes remain unpredictable despite significant investments.
