SDX Energy, a British oil and gas exploration company that currently operates only in the oil and gas sector, is transitioning into a vertically integrated, hybrid gas- and renewable-energy producer in Morocco and beyond, the company announced in a press release on Monday.
SDX plans to expand its gas transportation infrastructure to connect to the Algeria-Spain gas pipeline (“GME”) and bring gas from Europe to deliver to industrial users in and around Kenitra, in the north of Morocco.
In the medium term, SDX intends to venture into renewable power generation, leveraging its gas enduser base for a cross-selling opportunity for gas and “green” electricity. The company also plans to form partnerships with key stakeholders and expects to expand existing collaborations and create new joint ventures.
SDX Energy will continue its upstream activities in Morocco and elsewhere, with additional drilling activity planned for 2024, funded by a prepayment agreement with the Company’s largest enduser.
To support this new strategy, the company will sell its Egyptian assets and focus on growing its operations in Morocco while maintaining its upstream gas assets and natural gas production for endusers.
“This strategy will help the company to deliver long-term, sustainable value-creation — unlocking new business directions and project opportunities,” said new SDX CEO Daniel Gould. “With the upcoming disposal of Egyptian assets and a series of exciting opportunities in Morocco, SDX has begun repositioning itself corporately and operationally, and I am looking forward to steering the Company towards a prosperous future for its shareholders.”