Sound Energy Consolidates Portfolio in Morocco with New Agreement
Sound Energy, the Morocco focused upstream gas company, has expanded its activities in Morocco with the signing of an 8-year petroleum agreement covering a large area extending across and beyond the permits that were formerly known as the Sidi Mokhtar, in Essaouira basin
The agreement was signed with Morocco’s state regulator for petroleum operations, ONHYM, and will come into force upon approval of the Moroccan Energy and Finance Ministries, Sound Energy said in a statement.
The company is continuing its expansion in Morocco building on its success at onshore Tendrara gas wells in eastern Morocco.
“Upon the Sidi Mokhtar Petroleum Agreement becoming effective, the Company will hold and operate 75% position in Sidi Mokhtar onshore. The remaining 25% will be held by ONHYM,” the statement said.
Last November, Sound said a study suggested a potential best case scenario of 8.9 trillion cubic feet of gas at Sidi Moktar. The high case is 11.2 trillion cubic feet and low case 6.7 trillion cubic feet.
Sound emphasized that Sidi Moktar was close to existing infrastructure and gas demand. This includes a large-scale OCP phosphate plant owned by the government of Morocco.