Sound Energy and Managem have sealed a binding sale and purchase agreement (SPA). The deal, valued at up to US $45.2M, involves the sale of Sound Energy Morocco East. It covers key exploration and production concessions in Morocco.
Assets to be sold include 55% stake in the Tendrara operating concession and 47.5% interest in both the Grand Tendrara and Anoual exploration licences. 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.
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Tendrara project
Sound Energy will retain 20% interest in Tendrara Production Concession and 27.5% in Grand Tendrara and Anoual licences while Managem will own 55% of Tendrara project, financing Phase 2 development. ONHYM holds 25% interest.
The deal underscores the strategic importance of natural gas projects in Morocco’s energy landscape and reflects the growing interest in developing sustainable and locally sourced energy solutions. The Tendrara project’s development plan is divided into two phases.
The first phase involves construction of processing, liquefaction and storage facilities. It is expected to to produce 100 million cubic metres (mcm) per year of liquefied natural gas (LNG), starting in mid-2025. Phase two on the other hand envisions a processing facility and a pipeline linked to the Maghreb-Europe Gas Pipeline to supply 280mcm per year of natural gas. Managem, will finance Phase 2 development, two exploration wells, a contingent production payment, and reimburse past expenditures.
Graham Lyon, Executive Chairman of Sound Energy emphasized the smooth transition to Managem and the substantial funding and new exploration opportunities brought by the deal. Imad Toumi, Chairman and CEO of Managem highlighted the positive impact on Morocco’s energy independence and trade balance, and Managem’s broader strategy to explore natural gas opportunities across Africa.
