British gas company Sound Energy PLC has announced requesting Morocco’s National Office of Electricity and Drinking Water (ONEE) to postpone signing Tendrara Gas Sales Agreement (GSA).
In a statement on Wednesday, the company said that the signing event was scheduled to take place on March 31. However, COVID-19 related travel restrictions and closure of borders have prevented parties from meeting to conclude the deal.
The company announced on October 30, 2019 that it had signed a memorandum of understanding with ONEE.
Under the MOU, “the parties have agreed to use their reasonable endeavors to continue negotiations with a view to entering into a binding GSA, incorporating the key terms of the MOU announced in October and construed under Moroccan law, prior to March 31.”
The Company affirmed that the GSA negotiations are ongoing and announced that it is in the process of agreeing a further amendment to the MOU with ONEE to extend the period for negotiations of the final GSA to June 30.
It has licenses for natural gas exploration in the Tendrara natural gas field, on an area of 14.6 thousand square kilometers, in which 10 drilling wells have been excavated so far. Last year, it entered into a 25-year 133.5 km exploitation agreement.
The Tendrara GSA with ONEE aims to supply two power plants in northern Morocco with natural gas. The production capacity of these plants is estimated at 4,000 megawatts.
In late 2019, Sound Energy received approval from Morocco’s authorities to build and operate a new gas pipeline in the country.
The Tendrara Gas Export Pipeline is planned to connect the proposed gas treatment plant and compression station to Gazoduc Maghreb Europe (GME) pipeline.
The pipeline, 120 km long and 20 inch wide, will cross the Matarka Commune (Figuig province) and Merija Commune (Jerada province) to reach the delivery point of the GME.
