UK's Sound Energy PLC sells Moroccan gas assets to Managem
15/06/2024 24:05
RABAT, June 14 (Reuters) - UK gas company Sound Energy
PLC SOU.L sold its subsidiary, Sound Energy Morocco East
Limited, to Morocco's largest mining company, Managem, the two
companies said on Friday.
The transaction amounts to $45.2 million in total, Sound
Energy said, adding the sale was key to develop production in
the eastern Morocco gas field, known as Tendrara.
The field is expected to start production at 100 million
cubic meters annually starting next year, Managem said in a
statement.
Managem plans to further increase production there to 280
million cubic meters, when the field will be connected to an
existing gas pipeline that connects Morocco to Spain, Managem
added.
"The group is actively looking for other gas assets in
Africa," Managem CEO Imad Toumi was quoted in the statement as
saying.
Under the deal, Sound Energy will continue to hold a 20%
interest in the Tendrara Production concession, and a 27.5%
working interest in each of the Grand Tendrara Exploration
Concession and the Anoual exploration permit.
In addition to Morocco, Casablanca-listed Managem operates
in six African countries and produces cobalt, copper, zinc, gold
and silver.
Morocco imports most of its gas needs, estimated at 1
billion cubic meters (bcm) currently, enough to power two small
station in its northwest and northeast.
Its gas needs are expected to grow to 8 bcm as the country
seeks to reduce its carbon footprint, according to energy
ministry estimates.
(Reporting by Ahmed Eljechtimi; Editing by Sandra Maler)
((ahmed.eljechtimi@thomsonreuters.com;))