Morocco's Tendrara Gets Pipeline Offer

UK-based operator Sound Energy said July 7 it received a non-binding expression of interest from Moroccan privately-owned Oil & Gas Investment Fund (OGIF), its partner on the Tendrara licence, expressing OGIF's interest in funding, building and operating a new spur pipe connecting Tendrara to the existing gas transmission pipeline linking Algeria via Morocco to Spain, the Maghreb Europe Pipeline (Gazoduc Maghreb Europe, or GME).

The cost of the new Tendrara pipeline is currently estimated to be approximately $50mn, said Sound Energy. The Tendrara permit is 120km from the GME pipeline, although the proposed length, diameter and capacity of the connecting spur pipe to GME have yet to be communicated.

A map showing GME's 1,100-km route across Algeria, Morocco and the Strait of Gibraltar, provided by Portugal's Galp, one of GME's co-owners, is provided below.

Sound Energy CEO James Parsons said: "We are very pleased to have received this first expression of interest which potentially enables us to construct the infrastructure which would be required at Tendrara without equity dilution, whilst also further broadening our strong partnership with OGIF."

Two weeks ago Sound Energy gave a positive assessment of preliminary analysis of logs from its first Tendrara well in northeast Morocco.

Mark Smedley | www.naturalgasafrica.com