Sound Energy, a Mediterranean-focused oil and gas exploration company, confirmed it has a binding agreement to divest part of its Moroccan assets to Moroccan company Managem SA, Vox Market reported on Monday.
Under the deal, Sound Energy would sell its subsidiary, Sound Energy Morocco East (SEME), which holds a 55% interest in the Tendrara production concession and 47.5% in the Grand Tendrara and Anoual exploration permits.
Morocco’s Minister of Energy Transition granted approval for SEME to remain the operator of the Tendrara concession and permits after the transaction is concluded. Sound Energy’s shares rose 1.3% following the announcement.
The divestment deal initially announced in June 2024 is still subject to conditions, with updates expected soon.
Morocco’s giant Managem bought another Sound Energy subsidiary, Sound Energy Morocco East Limited, in the Tendrara gas field in Eastern Morocco on June 14th, for 45.2 Mln dollars.
Meanwhile, Sound Energy’s interim results show progress on Phase 1 of the Tendrara Micro LNG project, with gas production expected in 2025.
Sound Energy will retain a 20% ownership in the Tendrara Production concession and a 27.5% working interest in both the Grand Tendrara Exploration Concession and the Anoual Exploration Permit.
Morocco imports the vast majority of its gas needs, estimated at 1 billion cubic meters (bcm), enough to power two small power stations.
Morocco’s gas demand is expected to climb to 8 billion cubic meters as the country strives to reduce its carbon footprint, according to the Ministry of Energy.