Managem buys Moroccan gas assets from Sound Energy

Morocco

RABAT, June 18, 2024 – Moroccan mining company Managem has acquired the gas assets held in Morocco by UK operator Sound Energy under its subsidiary Sound Energy Morocco East for a total consideration of up to USD 45.2 million, the companies announced on Friday.

The assets covered by the agreement include 55% of the Tendrara operating concession, 47.5% of the Grand Tendrara exploration licence and 47.5% of the Anoual exploration licence. The transaction is a partial divestment by Sound Energy, and the company will retain a 20% interest in the concession and 27.5% interest in the licenses.

The transaction is subject to the fulfilment of conditions precedent and approval by ONHYM and the Moroccan Minister of Energy.

Located in eastern Morocco, the assets cover an area of approximately 23,000 square kilometres and hold estimated reserves of 10.67 bcm of natural gas.

Tendara’s first phase of development calls for the construction of a processing, liquefaction and gas storage facility. Production is expected to start in 2025 and reach around 100 mcm per year.

In a second phase that is currently under feasibility study, a processing facility and pipeline will be constructed to connect the development to the Maghreb-Europe Gas Pipeline. Managem will provide funding for this second development phase as well as for two additional exploration wells.

“This transaction will allow all Moroccan manufacturers to access cleaner and more affordable energy for their industrial operations. Although modest in size, the Tendrara project will positively impact Morocco’s energy independence and trade balance,” said Imad Toumi, chairman and CEO of Managem.