British Gas Firm Sound Energy Loses $2.55 Million Tax Dispute in Morocco, Plans Appeal

Sound Energy had filed an appeal with the administrative court against this tax adjustment, which had been rejected. The British company says it continues to believe that the claim results from a misinterpretation by the tax authorities of the oil agreement governing the Tendrara gas project, reports Natural gas world. Dissatisfied with the court’s decision, Sound Energy is preparing to appeal.

"We are both surprised and disappointed by this decision. Obviously, this is not what was expected and reflects poorly on the application and understanding of the legislative code applicable in Morocco," said the company’s chairman, Graham Lyon, in a statement. "We will both appeal to the higher Moroccan courts and reflect on the decision with the various Moroccan ministries given its impact for new entrants in Morocco," he added.