Sound Gets Key Moroccan Production Concession
UK-listed gas explorer Sound Energy said September 6 it has been awarded the eastern Moroccan production concession that contains the Tendrara gas discovery.
The concession covers an area of 133.5 km2 and follows an application by the company and its partners in June 2018. Sound said the field development plan underpinning this award includes: drilling, pre first gas, of up to five new horizontal development wells, in addition to re-completion of its existing TE-6 and TE-7 discovery wells; construction of a gas treatment plant and compressor station (CPF) and a 120-km, 20-inch Tendrara Gas Export Pipeline (TGEP) to link into the Gazoduc Maghreb Europe (GME) pipeline. The latter is one of two principal export pipes for Algerian gas to Spain.
Sound said it has already announced that front end engineering and design (Feed) is underway for both the CPF and the TGEP; it agreed in June that Spanish gas grid Enagas will run the 12o-km TGEP, if built.
Sound said that achievement of first gas in roughly two years at an expected mid-case production rate of around 60mn ft3/d over a minimum period of ten years during which it is currently estimated, but that an additional 10 to 13 wells will be drilled to maintain this production rate. It expects to take final investment decision on the Tendrara development once key development milestones have been secured, including a gas sales agreement, Feed capital funding, and local planning approvals.
"The company continues to make excellent progress on all fronts, including FEED, the gas sales agreement and ground works at TE-9," said Sound CEO James Parsons. Sound recently provided an update on its plans for the TE-9 and TE-10 exploration wells in the area. It announced 18 months ago that its TE-8 well (its third on Tendrara) had established that a hydrocarbon system proven in Algeria extends into eastern Morocco, thus confirming the potential of that so-called 'TAGI' play in Morocco.