Sound Energy, the Moroccan focused upstream gas company, said it has applied for the development concession to the Ministry of Energy to produce from Morocco's Tendrara gas discovery.
“The concession award, expected later this year, will be a significant step to both de-risk the development and commercialise the gas discovery,” said Sound Energy's CEO James Parsons.
This will be the company’s first development concession in Eastern Morocco. On June 7, the company said it has signed a heads of terms agreement to commercialising gas from the discovery by a pipeline and processing facility. It signed a financing and front-end engineering and design contract on a build-own-operate-transfer structure with a consortium of Enagas, Elecnor and Fomento that will deliver an estimated 60 mmscf/d of gas to the Gas Maghreb-Europe pipeline system.
“The company continues to make excellent progress on all fronts and, in addition to the FEED award announced on 7 June, the Company continues to advance discussions in relation to a gas sales agreement," Parsons added.
The Tendrara gas discovery sits in an onshore block located in Eastern Morocco, where Sound Energy started exploration activities as the operator in June 2015.
Sound Energy's application for the Phase-1 development of Tendrara, which will now be reviewed by the Ministry of Energy, covers the technical and commercial aspects of the field development plan and the outline of the development area.
Once on-stream, the existing discovery is expected by the company to produce some 60 million standard cubic feet per day of natural gas, and be monetised through a future 120km pipeline to the Gazoduc Maghreb Europe (GME) pipeline which is part of the infrastructure subject to the recent FEED award.
Sound Energy farmed in to the Tendrara licence in June 2015, taking a 55 per cent working interest in the licence, partnering ONHYM (25 per cent interest) and Oil & Gas Investment Fund (20 per cent interest) and assuming operatorship.