The sale was key to expanding production in Morocco’s eastern gas field, known as Tendrara.
This agreement concerns the acquisition of 55% of the Tendara operating concession, 47.5% of the Grand Tendara operating permit. The project will be 55% owned by Managem, 20% by Sound Energy Merijda Ltd and 25% by ONHYM.
The gas development plan for the Tendrara exploitation project is designed in two phases. The first, currently under construction, aims to produce 100 million m³ per year of Liquefied Natural Gas (LNG) from mid-2025 via an on-site gas processing, liquefaction and storage facility, making it possible to respond to the needs of national manufacturers.
The 2nd phase, 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 m³ per year of natural gas in order to contribute to sources of gas supply in the Kingdom.
The terms of the agreement provide for an amount of approximately $12 million (approximately MAD 119 million) payable upon completion of the transaction as well as the assumption of Sound Energy PLC’s share of financing of up to $24.5 million (approximately MAD 244 million) during the completion of phase 2 of the project.
The field is expected to start producing 100 million cubic meters per year starting next year, Managem said in a statement.
Managem plans to increase production to 280 million cubic meters, when the field is connected to an existing gas pipeline that connects Morocco to Spain, according to the same source.
“The group is actively seeking other gas assets in Africa,” said Imad Toumi, CEO of Managem, quoted in the press release.
As part of the agreement, Sound Energy will continue to hold a 20% interest in the Tendrara production concession, as well as a 27.5% direct interest in the Grand Tendrara exploration concession and the of Anoual exploration.
In addition to Morocco, Managem, listed in Casablanca, operates in six African countries and produces cobalt, copper, zinc, gold and silver.
Morocco imports most of its gas needs, currently estimated at 1 billion cubic meters (bcm), which is enough to power two small power plants in the northwest and northeast of the country.
According to energy ministry estimates, its gas needs are expected to increase to 8 billion cubic meters as the country seeks to reduce its carbon footprint.
