Circle Oil Strike New Deal for Moroccan Gas

Source: www.gulfoilandgas.com 2/8/2016, Location: Africa

Circle together with its partner Office National des Hydrocarbures et des Mines, has signed a Memorandum of Understanding ("MOU") with a potential new gas customer in Morocco, SBS Porcher. The MOU forms the basis for Circle to sell the gas discovered during the successful 2014/15 Sebou drilling campaign and all parties expect to sign binding documentation in the coming months.

As part of this arrangement, a new pipeline extension would be constructed linking the existing Circle-owned pipeline in the northern Kenitra region to the Porcher factory in the central Kenitra area.

The key terms of the MOU include:
-Porcher would pay for (and own) the required pipeline extension of approximately 15-18 km (estimated cost of $2.5m) to central Kenitra, with construction estimated to start in May 2016 and first gas anticipated to flow during Q4 2016.
-Estimated gross offtake volume would be 10,000 cubic metres per day (approx. 0.35mmcf/d)1 with a price of MAD 4.25/cubic metre ($12/mcf).
-This additional offtake represents an increase of ~6% of production volumes compared to 2015.
-The gas price would be fixed with no linkage to oil prices.
-The contract duration is 5 years.
This new contract when signed, will result in Circle achieving demonstrably higher gas prices. More importantly it also enables Circle to access a potential new customer base in central Kenitra.

For more information about related Opportunities and Key Players visit North Africa Projects


Nigeria >>  6/28/2022 - It has been announced by Maire Tecnimont S.p.A. that its subsidiaries Tecnimont and Stamicarbon have received a number of new contracts and order vari...
Morocco >>  6/20/2022 - Chariot (CHAR) is happy to announce that it has signed a front-end engineering and design ("FEED") agreement ("Agreement") for the Anchois gas develop...

Egypt >>  6/6/2022 - Eng. Yehia Zaki, chairman of SCZONE, received today a British delegation from the British International Investment to discuss investment opportunities...
Egypt >>  4/28/2022 - In the context of the Suez Canal Authority's efforts to promote yacht tourism in the Canal region, H.E. Admiral Osama Rabie, Chairman of the Suez Cana...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.