Managem Group Ventures into Green Energy: Acquires Sound Energy Morocco for a Sustainable Gas Future

In a transformative move for Morocco’s energy sector, the Managem Group, an eminent Moroccan mining enterprise, has broadened its horizons by acquiring Sound Energy Morocco East Ltd. This acquisition signifies a pivotal expansion into the upstream natural gas market, underscoring the escalating emphasis on clean and affordable energy across Africa.

The strategic acquisition, concluded following a rigorous selection process, endows Managem Group with a substantial 55% stake in the Tendrara operating concession and a 47.5% ownership of exploration licenses for the Grand Tendrara and Anoual areas. This investment is poised to bring multifaceted benefits to Morocco, enhancing both energy independence and economic stability.

Imad Toumi, CEO of Managem Group, emphasized the acquisition’s potential, stating that it will provide "clean and affordable energy for its industries," thereby contributing significantly to the nation’s sustainable energy ambitions. While the Tendrara project itself may be deemed modest, it represents a critical stride towards Morocco’s broader clean energy objectives.

The development plan for Tendrara is structured in two phases. The initial phase, currently underway, aims to produce 100 million cubic meters of liquefied natural gas (LNG) annually by mid-2025. The subsequent phase, which is still under feasibility study, envisions the establishment of a processing unit and pipeline to amplify production to 280 million cubic meters per year.

Financially, the deal involves an upfront payment of approximately $12 million by Managem Group, with a potential additional payout of $24.5 million contingent upon the successful completion of the second phase. However, regulatory approvals are still required to finalize the acquisition.

The acquisition marks a significant shift for Managem Group, positioning them as a key player in Morocco’s upstream natural gas market. Moreover, it underscores their dedication to a low-carbon future, aligning with Africa’s broader quest for sustainable energy solutions. The extensive portfolio of gas assets acquired spans over 23,000 square kilometers in Morocco’s eastern province.

The Tendrara concession, with its 25-year operating license and estimated resources of 10.67 billion cubic meters of natural gas, places Managem Group in a strong position to influence Morocco’s energy landscape profoundly.

In related news, it’s noteworthy that Managem Group experienced a 13% drop in profits in Q1 2024, attributed to an operational halt and a decline in cobalt prices. Despite this, the acquisition of Sound Energy Morocco East Ltd. signifies a forward-looking strategy, potentially offsetting recent financial challenges and marking a new era in the group's commitment to sustainable energy development.

Managem Group’s bold foray into natural gas is more than just a business expansion; it’s a significant contribution to Morocco’s journey towards a greener and more self-reliant energy future.