News listings
2022 Happy New Year

energy-pedia development and production

Morocco flagMorocco

Middle East / Africa >>> Morocco

Morocco: Sound Energy signs gas sales agreement for Phase 2 Tendrara development


30 Nov 2021

Photo - see caption

Sound Energy, the Moroccan focused upstream gas company, has entered into a binding gas sale and purchase agreement (the 'GSA') in respect of the Phase 2 development of the Tendrara Production Concession with Morocco's state-owned power Company ONEE (Office National de l'Electricite et de l'Eau potable) for the sale of natural gas from the Tendrara Concession in Eastern Morocco over a 10 year period.

The Company has entered into the GSA, which is in addition to the conditional Phase 1 micro liquified natural gas TE-5 Horst development related gas sales agreement entered into by the Company with Afriquia Gaz and announced by the Company on 29 July 2021, alongside its state-owned Tendrara Production Concession partner ONHYM (Office National des Hydrocarbures et des Mines and together with the Group the 'Tendrara JV Partners').

Under the GSA, the Tendrara JV Partners have conditionally committed to producing, processing and delivering gas from the Tendrara Production Concession, in accordance with required ONEE gas specifications, to the Gas Maghreb-Europe pipeline connecting Algeria to Spain and crossing Morocco (the 'GME Pipeline'), for an annual contractual volume up to  350 million cubic meters of natural gas per year for a period of 10 years, with an annual take or pay volume of 300 million cubic meters.

The GSA includes a fixed unitary price for the annual volume of 0.3 bcm per annum (approx. 29.0 MMscf/d or a minimum amount of energy of approx. 10.5 million MMbtu per annum to be delivered at the point of sale), which will result in annual gross revenues attributable to the Tendrara concession (100%) as envisaged in the original binding memorandum of understanding between the parties announced by the Company on 30 October 2019

The GSA is conditional upon, inter alia: (i) all necessary authorisations and permits having been granted for the construction of the Phase 2 gas installations (ii) the final investment decision, when taken, by the Tendrara JV Partners, being approved by the Moroccan Ministries of Transition Energy and Sustainable Development and Economy and Finance; and (iii) the entry by the Tendrara JV Partners of an interconnection agreement with the operator of the GME Pipeline, and the commencement of works, for the connection of the Tendrara Production Concession to the GME Pipeline. The conditions to the GSA are required to be satisfied within 90 days of signature, however an extension is allowable with the consent of all parties.

Photo - see caption
Source: Sound Energy

Graham Lyon, Sound Energy's Executive Chairman, commented:

'The agreement of the GSA is an important and long-awaited step which will allow the Company to progress development planning for the proposed TE-5 Horst Phase 2 development. It also underpins the ongoing discussions with potential and identified funding partners. These potential partners have expressed strong interest in participation in the proposed regional infrastructure and asset development via vendor financing, equity participation and alternate lending solutions, in order to build the long-term domestic infrastructure and gas supply in and for Morocco. Satisfying the conditions precedent within a tight 90-day timetable is challenging, however all parties have expressed support to conclude with financiers.

We are delighted with this confirmation that the UK-Morocco, ONHYM and Sound Energy partnership is working well, and such a business partnership can enhance, with the strong support of our shareholders and our local partners, the expected 5.7% economic growth of the Kingdom of Morocco despite the COVID-19 pandemic.'

Original article link

Source: Sound Energy





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current Deals

Current Upstream Deals: 344

Completed Deals

Completed Upstream Deals: 6225

Company Profiles

Current Company Profiles: 2813

Corporate Activity

Current Corporate Activity articles: 3836

Companies Looking

Current number of articles: 449

Company Sales

Current Company Sales articles:1515

Geostudies

Current Geostudies articles: 833

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

OPC
energy365
Union Jack Oil 149
KL Publishing
Syntillica
Bayphase
Government of South Australia
SLR Consulting logo
Borchwix
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com