Chariot Oil & Gas to buy African renewables partner of Total Eren

Chariot Oil & Gas Ltd (LON:CHAR) has signed a deal to buy Africa Energy Management Platform (AEMP), a developer of renewable and hybrid energy projects with a focus on African mining sites.

Chariot has agreed to pay up to USD 2 million (EUR 1.7m) in cash and stock for the ownership of AEMP, including a milestone payment of up to USD 0.75 million. Completion of the transaction is expected to take place in the second quarter of 2021. Once this happens, the buyer will change its name to Chariot Limited.

AEMP has an existing partnership with independent power producer Total Eren, which is backed by French multinational energy company Total SE (EPA:FP). The pair is looking to supply clean energy to operational mines in Africa and are currently in talks with local sector players with an aggregate requirement for 500 MW of power.

The two companies have already completed a hybrid power project at the Essakane gold mine in Burkina Faso. The particular complex consists of a 15-MW solar photovoltaic (PV) plant and a Heavy Fuel Oil (HFO) power facility.

Chariot said it will acquire a 10% stake in the Essakane project, while Total Eren will continue to own 90%.

(USD 1.0 = EUR 0.841)

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