The Anchois Gas Project in Morocco Suspended: Economic Viability in Question

Despite traces of gas identified at the Anchois-3 well, Energen announces the suspension of the offshore project in Morocco. The decision stems from low economic profitability, impacting the country's energy ambitions.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

The Lixus offshore license, located off the Moroccan coast, is at the center of energy sector discussions. Energen, the company leading its development, has recently announced the suspension of activities for the Anchois gas project. This decision results from an unfavorable economic assessment of recent findings from drilling activities at the Anchois-3 well.

Mixed results

In September, Chariot Oil, a 30% stakeholder in the project, reported promising indications of gas presence. However, in-depth analyses conducted by Energen revealed insufficient volumes to justify large-scale economic development. According to Mathios Rigas, CEO of Energen, while gas was found, the quantities are not enough to meet the necessary profitability thresholds.

This announcement contrasts with the initial enthusiasm sparked by previous discoveries at the site, particularly those from the Anchois-2 well, which had suggested a more significant potential.

Impact on Moroccan ambitions

Facing high energy dependence, Morocco is banking on gas projects to diversify its energy mix and reduce imports of petroleum products. Natural gas is seen as a critical lever to support the country’s energy transition and meet growing electricity demands.

The suspension of the Anchois project is a setback for these ambitions, particularly in the Gharb basin region, where exploration efforts are concentrated. The Lixus license, jointly held by Energen (45%), the Moroccan National Office of Hydrocarbons and Mines (ONHYM, 25%), and Chariot Oil (30%), remains a strategic focus for the partners. They continue to explore opportunities to monetize previously identified volumes.

Future perspectives for the project

While the Anchois-3 well seemed poised to enhance resource estimates in the region, the decision to suspend the project raises questions about the future of investments in the basin. For Morocco, it also calls for reconsidering strategies to attract international operators.

Attention now turns to potential geological reassessments and adjustments to exploration plans to maximize the use of identified resources. While economic viability remains a significant obstacle, stakeholders may explore partnerships or technological solutions to optimize the exploitation of available resources.

Baker Hughes has secured a contract from Bechtel to provide gas turbines and compressors for the second phase of Sempra Infrastructure’s LNG export project in Texas.
Targa Resources will build a 500,000 barrels-per-day pipeline in the Permian Basin to connect its assets to Mont Belvieu, strengthening its logistics network with commissioning scheduled for the third quarter of 2027.
Brazilian holding J&F Investimentos is in talks to acquire EDF’s Norte Fluminense thermal plant, valued up to BRL2bn ($374 million), as energy-related M&A activity surges across the country.
Chevron has appointed Bank of America to manage the sale of pipeline infrastructure in the Denver-Julesburg basin, targeting a valuation of over $2 billion, according to sources familiar with the matter.
Hungary has signed a ten-year agreement with Engie for the annual import of 400 mn m³ of liquefied natural gas starting in 2028, reinforcing its energy diversification strategy despite its ongoing reliance on Russian gas.
Wanted by Germany for his alleged role in the 2022 sabotage of the Nord Stream pipelines, a Ukrainian has been arrested in Poland and placed in provisional detention pending possible extradition.
An unprecedented overnight offensive targeted gas infrastructure in Ukraine, damaging several key facilities in the Kharkiv and Poltava regions, according to Ukrainian authorities.
The Dunkirk LNG terminal, the second largest in continental Europe, is seeing reduced capacity due to a nationwide strike disrupting all French LNG infrastructure.
Russia’s liquefied natural gas output will increase steadily through 2027 under the national energy development plan, despite a 6% drop recorded in the first eight months of 2024.
QatarEnergy has signed a long-term contract with Messer to supply 100 million cubic feet of helium per year, strengthening Doha’s position as a key player in this strategic market.
US-based fund KKR has acquired a minority interest in the gas pipeline assets of Abu Dhabi oil operator ADNOC, continuing its strategy to expand energy infrastructure investments in the Middle East.
Shell UK has started production at the Victory field north of Shetland, integrating its volumes into the national gas network through existing infrastructure to strengthen UK supply.
Exxon is seeking direct support from the Mozambican government to secure its Rovuma LNG project, as Islamist violence continues to hinder investment in the country’s north.
Chevron has signed a $690 million agreement with Equatorial Guinea to develop gas from the Aseng field, amid a long-term decline in national oil production and a search for new economic drivers.
TotalEnergies has set 2029 as the restart date for its Mozambique LNG project, frozen since 2021, delaying the exploitation of a strategic investment worth more than $20bn in liquefied natural gas.
The establishment of a dedicated entity marks a new phase for the Nigeria-Morocco pipeline, with tenders and the final investment decision expected by the end of 2025.
The European ban on Russian liquefied natural gas from 2027 is pushing Siberian producers to reorient their flows to Asia, despite logistical and regulatory constraints.
Caturus Energy has signed a multi-year contract with Nabors Industries to deploy a next-generation onshore rig, aimed at supporting the expansion of its gas output in the Eagle Ford and Austin Chalk formations in Texas.
Trinity Gas Storage partners with Intercontinental Exchange to open two new trading points at its Bethel site, strengthening East Texas’s strategic appeal in the U.S. gas market.
The Egyptian government is accelerating the deployment of its gas network and the conversion of vehicles to CNG, strengthening infrastructure despite a decline in domestic production.