British Firm Sound Energy Extends Gas Sale Talks with Morocco’s ONEE

It was through the publication of a press release on January 2 that Sound Energy announced this modification of the memorandum of understanding signed on October 29, 2019 with ONEE.

This protocol concerns the sale of a total of 5 billion m3 of natural gas from the Tendrara concession to ONEE, which should allow it to secure its supplies to fuel its power plants for ten years and generate, the 1st year, $84 million for Sound Energy. Subsequently, the two parties did not sign the sales agreement by December 31 as agreed. Hence, the extension of negotiations until March 31, 2020.

"Following an agreement in principle, the parties intend to conclude the amendment as soon as possible," the Sound Energy press release states. As a result, the start of deliveries could be delayed.

In addition, the construction of a gas treatment plant, a compression station (CPF) and a pipeline that will allow the gas from Tendrara to be transported to the delivery point of the Maghreb Europe Gas Pipeline located 120 kilometers away will have to be effective before any delivery.