Managem won the competition against international investors to acquire Sound Energy Morocco East Limited and create an industrial gas hub. This strategic acquisition is part of the group’s desire to respond to the challenges of energy decarbonization in Morocco and Africa.
The acquisition concerns:
– 55% of the Tendrara operating concession,
– 47.5% of the Grand Tendrara exploration permit,
– 47.5% of the Anoual exploration permit.
The gas development plan for the Tendrara exploitation project is designed in two phases:
– Phase 1: under construction, with a view to producing 100 million cubic meters per year of Liquefied Natural Gas (LNG) from mid-2025 via a gas processing, liquefaction and storage facility on site, making it possible to meet the needs of national manufacturers.
– Phase 2: currently undergoing a feasibility study, provides for the construction of a processing unit and a pipeline connecting the Maghreb-Europe Gas Pipeline (GME), to supply 280 million cubic meters per year of natural gas in order to contribute to the Kingdom’s gas supply sources.
The terms of the agreement provide for an amount of approximately 12 million US dollars (approximately 119 million dirhams) payable upon completion of the transaction as well as the assumption of Sound Energy PLC’s share of financing of up to ‘to 24.5 million US dollars (approximately 244 million dirhams) during the implementation of phase 2 of the project.
The global agreement is subject to the fulfillment of certain conditions precedent, including obtaining regulatory approvals.
Upon closing of the transaction, the Tendrara project will be 55% owned by the Managem Group, 20% by Sound Energy Meridja Ltd and 25% by ONHYM.
“Sound Energy Plc selected Managem through an open and competitive process. Sound Energy, which was looking for an investor to finance its development, found in Managem a solid long-term partner capable of developing and carrying out this project for the benefit of all Moroccan industrialists who will thus benefit from clean and cheaper energy for their activities. . Although modest in size, the Tendrara project will contribute positively to the Kingdom’s energy independence and its trade balance. In addition, the Group is actively looking for other gas assets in Africa, thus strengthening its diversification strategy and contributing to the energy development of the continent,” explains Imad Toumi, CEO of the Managem Group, in a press release.
Remember that the gas asset portfolio subject to the transaction extends over an area of approximately 23,000 km² in the eastern province of Morocco. The Tendrara concession includes an operating license of 133.5 km² granted for a period of 25 years from 2018, with resources estimated at 10.67 billion cubic meters of natural gas.
