UK-based gas company Sound Energy has signed a binding sale and purchase agreement (SPA) to partially divest its Moroccan gas assets to Managem.
The deal, valued at up to $45.2m (Dh453.52m), involves the sale of Sound Energy Morocco East. It covers key exploration and production concessions in Morocco.
The transaction includes selling a 55% stake in the Tendrara operating concession, along with 47.5% interests in both the Grand Tendrara and Anoual exploration licences.
Following the sale, Sound Energy will retain a 20% interest in the Tendrara Production Concession and a 27.5% working interest in the Grand Tendrara and Anoual licences.
The assets are situated in Morocco's Eastern Province, spanning approximately 23,000km².
The Tendrara concession, with an operating licence area of 133.5km², contains an estimated 10.67 billion cubic metres of natural gas reserves and is currently under a 25-year grant from 2018.
The Tendrara project's development plan is divided into two phases.
Phase 1, which is under construction, is expected to produce 100 million cubic metres (mcm) per year of liquefied natural gas (LNG), starting in mid-2025.
This phase includes the construction of processing, liquefaction and storage facilities.
Phase 2, still in the feasibility study stage, envisions a processing facility and a pipeline linked to the Maghreb-Europe Gas Pipeline to supply 280mcm per year of natural gas.
Managem, primarily a mining company, will finance Phase 2 development, two exploration wells, a contingent production payment, and reimburse past expenditures.
Following the deal's closure, Tendrara project will be 55% owned by Managem, 20% by Sound Energy Meridja and 25% by ONHYM, Morocco's national oil and gas company.
Sound Energy executive chairman Graham Lyon said: "We are very pleased to have entered into this binding share sale to an excellent counterparty, Managem. The share sale transaction of our UK company subsidiary, the permits owner, is structured to allow a smooth transition to Managem whilst bringing Sound Energy two new exciting exploration drills, substantial funding for the phase 2 development and past costs. There is also a production bonus once phase 2 gas is delivered."
Managem chairman and CEO Imad Toumi said: “This transaction will allow all Moroccan manufacturers to access cleaner and more affordable energy for their industrial operations. Although modest in size, the Tendrara project will positively impact Morocco's energy independence and trade balance.
“In addition, the group is actively exploring other natural gas opportunities across Africa, thereby reinforcing its diversification strategy and contributing to the continent’s energy development.”
