Sound Energy sells stake in Moroccan gas assets to Managem for $45.2mn
London-listed Sound Energy has signed a binding sale and purchase agreement for the partial divestment of its Moroccan assets to local mining company Managem for $45.2mn, it announced on June 14.
Following the deal, Sound Energy will hold a 20% interest in the Tendrara production concession and 27.5% working interests in both the Grand Tendrara exploration concession and the Anoual exploration permit. Managem will own 55% of Tendrara, 47.5% of Grand Tendrara, and 47.5% of Anoual.
Managem will provide funding for the second phase development of Tendrara and two exploration wells to satisfy the work programmes under the permits, a contingent production payment, and recovery of past expenditures.
“This transaction will allow all Moroccan manufacturers to access cleaner and more affordable energy for their industrial operations,” Imad Toumi, CEO of Managem, said in a separate statement. “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.”
With this acquisition, Managem expands its activities into the upstream exploitation of natural gas in Morocco. Located in the Eastern Province of Morocco, the gas assets portfolio covers an area of approximately 23,000 km². The Tendrara concession includes a 133.5 km² operating licence, granted for a period of 25 years from 2018, with estimated reserves of 10.67bn m3 of gas.
The gas development plan for the Tendrara project is structured in two phases. The first phase, currently under construction, plans to produce 100mn m3/year of LNG from mid-2025. It involves setting up a processing, liquefaction, and gas storage facility to serve the needs of national manufacturers.
The second phase, currently under feasibility study, includes the construction of a processing facility and a pipeline that will connect to the Maghreb-Europe Gas Pipeline (GME). The goal is to supply 280mn m3/year of natural gas.
The terms of the agreement provide for an amount of approximately $12mn, payable upon completion, in addition to funding of up to $24.5mn of Sound Energy's share of financing in the implementation of the second phase of the project.