Sound Energy Awarded Morocco Gas Concession
AIM-listed Mediterranean upstream company Sound Energy has been awarded the production concession for the onshore Tendrara gas discovery in eastern Morocco.
The company will drill five horizontal development wells to achieve first gas by 2020, with an expected production rate of 60 million cubic feet per day over a 10-year period. This will require an extra 10 to 13 wells to maintain the projected production output rate.
The drilling of the horizontal wells is in addition to recompletion of the existing TE-6 and TE-7 wells.
“I am delighted with the award of the first development concession, which is a critical step in commercialising our gas discovery,” Sound Energy CEO James Parsons said in a statement.
Oil Review Africa reported on Tuesday that Front-End Engineering and Design (FEED) work on the 133.5km2 concession has already commenced on the central processing facility, as well as on the Tendrara Gas Export Pipeline, which will be connected to the to the Gazoduc Maghreb Europe route.
Sound Energy will only take a final investment decision on the development once key development milestones, including a gas sales agreement, FEED development capital funding and local regulatory administrative formalities have been put in place.
The company, meanwhile, secured a FEED conditional construction and infrastructure financing contract with a consortium comprising of Enagas, Elecnor and Fomento under a build-own-operate-transfer structure in June this year.