X

Managem Expands Footprint with Acquisition of Sound Energy Morocco

Managem Expands Footprint with Acquisition of Sound Energy Morocco
Tuesday 25 June 2024 - 15:45
Zoom

Managem Secures Major Stake in Morocco’s Natural Gas Fields

In a strategic move poised to reshape the energy landscape in Morocco, Managem, a prominent player in the mining sector, has announced the acquisition of Sound Energy Morocco, a subsidiary of the British entity Sound Energy. This acquisition follows a highly competitive selection process that attracted interest from international investors.

A Dominant Stake in Key Concessions

With this acquisition, Managem now holds a commanding 55% stake in the Tendrara operating concession, alongside a 47.5% stake in both the exploration licenses for the Greater Tendrara and Anoual fields. This move positions Managem as the foremost investor in Morocco’s largest natural gas reserves.

“Sound Energy Plc selected Managem through a rigorous process intended to find an investor capable of financing and developing the project. Managem has proven to be a dependable long-term partner with the expertise to drive this project to fruition,” stated Imad Toumi, Chairman and CEO of Managem.

Toumi further elaborated, “This transaction will enable Moroccan manufacturers to access cleaner and more cost-effective energy for their industrial needs.”

Boosting Energy Independence and Economic Stability

Despite its relatively modest scale, the Tendrara project is expected to significantly bolster Morocco’s energy independence and positively impact the nation’s trade balance. Toumi revealed that the Group is actively seeking additional natural gas opportunities across Africa, reinforcing its diversification strategy and contributing to the continent’s energy development.

Phased Development to Meet Growing Energy Demands

According to the official statement, the development plan for the Tendrara project is divided into two main phases:

- Phase 1: Currently under construction and scheduled for completion by mid-2025, this phase aims to produce 100 million cubic meters of Liquefied Natural Gas (LNG) annually. It involves the establishment of processing, liquefaction, and gas storage facilities to cater to the energy needs of national manufacturers.
  
- Phase 2: Currently in the feasibility study stage, this phase proposes the construction of a processing facility and a pipeline connecting to the Maghreb-Europe Gas Pipeline (GME). The objective is to supply 280 million cubic meters of natural gas per year, thereby enhancing the Kingdom’s gas availability.

Financial Commitments and Future Prospects

The agreement stipulates an initial payment of approximately $12 million (around MAD119 million) upon completion. It also includes provisions for up to $24.5 million (about MAD244 million) to fund Sound Energy’s contribution to Phase 2 of the project.

This acquisition marks a significant step for Managem as it continues to expand its influence and capabilities within the energy sector, promising substantial benefits for Morocco’s industrial landscape and broader economic stability.


Read more