LONDON (ShareCast) - (Sharecast News) - Chariot has signed a front-end engineering and design (FEED) with Schlumberger and Subsea 7, as part of a consortium, for the Anchois gas development project in Morocco, it announced on Monday.
The AIM-traded firm said the three companies would continue to adopt a "one-team" integrated and collaborative approach to fast-track first gas to maximise the return on investment.

It said the agreement covered front-end engineering support and design work for the Anchois gas development, incorporating offshore components including well completions, subsea production systems and subsea umbilicals, risers, and flowlines that would be delivered by the Subsea Integration Alliance.

The contract also covered onshore components including a central processing facility and flowlines and controls from the facility to the shore crossing, that would be delivered by Schlumberger.

Generation of deliverables, such as engineering, procurement, construction, installation, and commissioning costs and schedules, would be required before final investment decisions.

Chariot said there was an opportunity for it to directly source services with Schlumberger and Subsea 7 for the field development and operations and maintenance of the facilities during commissioning and the early production phase.

Beyond the agreement, the firm said it was managing the additional FEED scopes required for the development, including well construction and onshore infrastructure, including fixed pipelines, to deliver gas to customers.

"Signing this agreement with Schlumberger and Subsea 7 is further evidence that we have accelerated development plans for the Anchois Gas Project, a key tenet of our recent fundraising," said acting chief executive officer Adonis Pouroulis.

"It is a pleasure to work closely with both companies on this integrated design phase, to benefit from their experience in working on several similar projects globally, and to leverage their standardised technology which is directly applicable to the Anchois development."

Pouroulis said the company was "looking forward" to building on the relationship and to realise the benefits of an integrated project execution.

"Reduced interfaces, fewer contingencies, and strong leverage over procurement and the offshore construction schedule will help shorten time to first gas.

"This streamlined approach will benefit all stakeholders which is a key objective of fast-tracking the project towards cash flow."

At 1336 BST, shares in Chariot were up 7.07% at 20.18p.

Reporting by Josh White at Sharecast.com.

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