Proactive Investors
The gas sales agreement will, once agreed, cover all of the gas to be produced from the Tendrara production concession.
Sound Energy PLC (LON:SOU) has told investors that it has continued positive discussions with the Moroccan authorities over a gas sales agreement that would unlock the Tendrara project for production.
The explorer, in a statement, revealed that Morocco’s Office National de l’Electricité et de l’Eau Potable (ONEE) and the Moroccan Minister of Energy have confirmed the intention that, once agreed, the GSA will cover all of the gas to be produced from the recently awarded Tendrara production concession.
It described the pending GSA as “a critical next step” required to bring the field development project to a final investment decision.
Sound said: “The Tendrara development has the potential to offer Morocco both a new strategic domestic gas supply source, thereby reducing its dependency on Algerian imports, and significant new gas transportation infrastructure in the East of Morocco connected to the Gazoduc Maghreb Europe pipeline.”
The Tendrara project’s first gas is expected after around two years, with production volumes projected to be around 60mln cubic feet per day over a 10-year period.
Tendrara’s production concession is just one portion of the Greater Tendrara area which spans some 14,500 square kilometres surrounding the Tendrara gas discovery.
Sound holds 47.5% of the area, alongside Schlumberger, which has 27.5% and the state’s ONHYM vehicle, which retains a 25% stake.
