UK-based Sound Energy has signed a new 8-year petroleum agreement with the Moroccan government to bring together the Tendrara and Matarka exploration areas.
Image: Sound Energy and partners signed a new 8-year petroleum agreement with the Morocco government. Photo: courtesy of rawpixel/Unsplash.com.
The new agreement will unite areas covered by the Tendrara petroleum agreement and the Matarka reconnaissance license (Greater Tendrara) and the existing Anoual petroleum agreement and the production concession application associated with the Tendrara gas discovery.
Sound Energy CEO James Parsons said: “I am delighted to announce that we have contractually secured our rights on this potentially transformational acreage up to 2026.
“We look forward to the approval of our production concession and commencement of our exploration drilling programme in the near future.”
The new Greater Tendrara Petroleum Agreement includes an area of around 14,500km2 extending across eastern Morocco and surrounding the development concession application area associated with the Tendrara gas discovery.
It will combine the areas covered by the Tendrara petroleum agreement granted in April 2013 and the Matarka reconnaissance license given in July 2017.
The Moroccan government was represented by L’Office National des Hydrocarbures et des Mines (ONHYM), the country’s petroleum operations regulator during the signing of the new agreement, which would be subject to approval of the Moroccan Energy and Finance Ministries.
Once the Greater Tendrara Petroleum Agreement is put into force, Sound Energy will own an operated stake of 47.5% with Schlumberger to own 27.5% and ONHYM to hold 25% in the unitized onshore Moroccan acreage.
In June, Sound Energy awarded a front end engineering and design (FEED) contract to a consortium of Enagas, Elecnor and Fomento for the construction of a 20inch pipeline and facilities needed to transport gas from the Tendrara gas field.
The consortium is likely to begin FEED process on a gas processing plant and the gas pipeline in the Figuig Province which will transport nearly 60mmscf/d of gas from the Tendrara license to the Gas Maghreb-Europe (GME) pipeline system.
Once the FEED process is completed, Sound Energy is expected to reach the final investment decision (FID) on the development of the Tendrara gas discovery.