UK gas company Sound Energy PLC (SOU.L) announced on Friday that it has sold its subsidiary, Sound Energy Morocco East Limited, to Morocco’s largest mining company, Managem.
According to Sound Energy, the transaction totals $45.2 million and is crucial for advancing production in the eastern Morocco gas field, Tendrara. Managem stated that the Tendrara field will begin production next year, with an expected annual output of 100 million cubic meters.
Managem plans to boost production at the Tendrara field to 280 million cubic meters once it is connected to an existing gas pipeline linking Morocco to Spain, the company added. Managem’s CEO, Imad Toumi, mentioned in the statement that the group is actively seeking other gas assets in Africa.
As part of the deal, Sound Energy will retain a 20% interest in the Tendrara Production concession and a 27.5% working interest in both the Grand Tendrara Exploration Concession and the Anoual exploration permit.
Besides Morocco, Casablanca-listed Managem operates in six other African countries, producing cobalt, copper, zinc, gold, and silver. Currently, Morocco imports the majority of its gas requirements, estimated at 1 billion cubic meters (bcm), which is sufficient to power two small stations in the northwest and northeast regions.
According to the energy ministry’s estimates, the country’s gas needs are expected to increase to 8 bcm as it aims to reduce its carbon footprint.
