Sound Energy wins production concession for North African gas field

Morocco gas 11The Moroccan Ministry of Energy has awarded Sound Energy, the Morocco-focused upstream gas company, a production concession relating to the Tendrara gas discovery in the eastern province of the country

The production concession award covers an area of 133.5 sq Km and follows an application by the company and its partners in June 2018. The field development plan underpinning this award includes:

The drilling, pre-first gas, of up to five new horizontal development wells, in addition to completion of the existing TE-6 and TE-7 wells.

The construction of a gas treatment plant and compression station (CPF) and a 120 km 20-inch Tendrara Gas Export Pipeline (TGEP) connecting the CPF and the delivery point to the Gazoduc Maghreb Europe pipeline. As already announced, front-end engineering and design (FEED) is underway for both the CPF and TGEP.

The achievement of first gas in approximately two years at an expected mid case production rate of around 60mn scf per day over a minimum period of 10 years during which it is currently estimated, subject to optimisation of drilling plans, that an additional 10 to 13 wells will be drilled to maintain this production rate.

The Company expects to be in a position to take final investment decision on the Tendrara development once important development milestones have been secured including a gas sales agreement, FEED development capital funding and local regulatory administrative formalities.

In June 2018, Sound Energy signed heads of terms with a consortium comprising Enagas, Elecnor and Fomento for the FEED and conditional construction and financing of all the infrastructure required including the TGEP and CPF under a 'build-own-operate-transfer' structure.

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