Sound Energy, a London-listed energy company, announced today that it is extending the negotiation period with Attijariwafa Bank, Morocco’s largest bank, on funding the Grand Tendrara and Anoual gas exploration permit located in northern Morocco.
Sound Energy and Attijariwafa Bank now have until December 15 to negotiate the binding terms of the financing agreement of up to MAD 2.25 billion ($206 million) for a period of 12 years.
The fund would partially cover phase two development costs for the Tendrara Production Concession permit. The company estimates that the development cost of phase two could reach $330 million.
Sound Energy announced on August 9 that it is in the process of seeking co-investors to scale up exploration activities under the Tendrara Production Concession and the surrounding Grand Tendrara and Anoual exploration permits located in north Morocco.
The energy company first announced on June 23 that they were entering a gas and purchase agreement relating to phase two with Morocco’s state-owned utilities company ONEE.
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Under the agreement, Sound Energy would supply ONEE with natural gas for a period of one decade. The deal hinges on a number of conditions including that Sound Energy acquires the necessary permits to carry out phase two of the gas exploration venture, and reaches the final state-approved investment decision.
Commenting on the update concerning Attijariwafa Bank’s financing deal, Sound Energy’s CFO Garry Dempster, said: “Alongside the Company continuing to make good progress on executing the Tendrara Phase 1 gas development, I am pleased with the progress that the Company is making in advancing project funding for the proposed Tendrara Phase 2 gas development.”
The CFO explained that the company has a strategic license partner, the National Office of Hydrocarbons and Mines (ONHYM), detailing what the partnership means for Morocco.
“This is a critical project that will propel the Company’s future growth along with forming a key pillar of Morocco’s energy strategy centered around the energy transition,” he said.
SOURCE: Morocco news
