A significant accomplishment for the British energy business Sound Energy is the announcement that its micro-liquefied natural gas (LNG) project at the Tendrara production concession in Morocco will begin to generate profits in the early months of 2024.

The London-listed firm announced its audited final results for 2022 in a press release, highlighting the fact that phase 1 LNG export is anticipated to begin in 2024.

The energy business stated that the main civil work, the foundations for the LNG tanks, was finished and tested in the first quarter of 2023.

With the micro-LNG development at Tendrara contractually scheduled to generate “maiden revenues” in early 2024, the company’s Executive Chairman, Graham Lyon, emphasized that 2022 was a year of “real tangible progress” for Sound Energy.

The energy company brought up the March 2022 Maghreb-Europe pipeline interconnection agreement with Morocco’s Hydrocarbons and Mines Office (ONHYM) with regard to the second stage of the development of the Moroccan Tendrara project.

In accordance with the contract, ONHYM gave its approval for the connection of the Tendrara Production Concession to the Maghreb-Europe pipeline via a gas export spur pipeline.

Although ministerial permission is still pending, the first “complementary period” of the Grand Tendrara exploration licences has started, according to the UK’s Sound Energy.

The business also declared that the exploration permissions for Sidi Moktar and Anoual would be extended for a another year, emphasizing that the choice is still pending ministerial approval.

While disruptive circumstances, such a tax battle with Moroccan authorities, hampered Sound Energy’s operations in 2022, engineering and production both advanced.

The business has handled its tax problems, enabling it to use its resources as efficiently as possible for field development.

“UK’s Sound Energy entered into a settlement agreement with Morocco’s tax authority on a phased payment schedule back ended over 6 years of approximately US$2.5 million as a full and final settlement against a claim of approximately US$23.95 million,” the business said in a news release.

Lyon underlined the “positive working relationship” the business has had with ONHYM, the government, and various contractors in Morocco.

Upstream gas business Sound Energy plc is based in London and has interests in Morocco.

After the Algerian government chose to shut down the Maghreb Europe pipeline, which provided Spain with Algerian gas through Morocco, the North African nation signed into a gas supply agreement with Sound Energy. Following Algeria’s severing of diplomatic ties with Rabat in August 2021 due to alleged “hostility” from Rabat, Rabat made the decision.

As part of the agreement, Sound Energy will feed the pipeline with gas, assuring Spain’s continued access to energy. With the country anticipating huge cash from gas exports, the decision also represents a significant boost for the Moroccan economy.

In accordance with the revival agreement, Sound Energy will provide gas to the pipeline for ten years.

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Nigeria, Egypt, Libya, and Algeria may be surpassed by other nations, according to the Global Energy Monitor report, which tracks oil and gas conditions around the world.

According to the non-governmental organization, monitoring data reveals that 84% of the newly discovered reserves are found in new gas-producing nations in Africa, such as Mozambique, Senegal, Tanzania, Mauritania, South Africa, Ethiopia, and Morocco.

According to the organization, Morocco currently has gas reserves of around 39 billion cubic meters, whereas Mauritania has 574 billion cubic meters of reserves, including a portion from joint reserves with Senegal that are estimated to be 566 billion cubic meters.

Global Energy Monitor expects that these nations will hasten the short-term development of gas production in its report.

It even predicts that by 2038, more than half of the gas produced in Africa will come from Mozambique, Mauritania, Tanzania, South Africa, and Ethiopia.

Graham Lyon, CEO of the British Sound Energy company in charge of oil and gas exploration in Morocco, stated in an interview that “Morocco has a great wealth of natural gas reserves, which will help it achieve self-sufficiency, and even move to Exporting gas to international markets.” By the end of December 2022.

At the time, Lyon reaffirmed that “two major projects are under study and implementation, one of which is related to the supply of liquefied natural gas to the main industrial markets, and the other includes the development of a gas pipeline to supply the electricity markets with gas.”

According to Global Energy Monitor, $329 billion in investments are needed to realize projects in African nations and to produce the desired results for governments. These investments will enable gas extraction and the development of suitable infrastructure for export.

These countries have new reserves totaling more than 5.138 billion cubic meters, which could result in potential emissions of 11.9 billion tons of carbon dioxide, posing a significant environmental challenge.

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The first project will supply around 100 million cubic meters of LNG per year to industrial customers. With the goal of starting manufacturing and sales in the first quarter of 2024,

The CEO of the British “Sound Energy” company (in charge of oil and gas exploration in Morocco), Graham Lyon, said, in an interview with the “Petroleum Economist” website, which specializes in the energy economy, that ” Morocco has a large revolution in natural gas reserves , and that this will help it achieve self-sufficiency, and even tends to export gas to global markets.

In the following year, Graham Lyon underlined that “two important projects are under discussion and implementation, one pertaining to the delivery of LNG to key industrial markets, and the other involving the creation of a pipeline for the supply of gas to power markets.”

“The first project will provide industrial markets with around 100 million cubic meters of liquefied gas annually; it aims to begin production and sales in the first quarter of 2024. Morocco possesses record-setting natural gas reserves of more than 20 trillion cubic feet. Although Morocco currently uses coal to generate power, it continues to advance renewable energy transformation initiatives that lower carbon emissions. In order to fulfill the goals of the Maghreb and the nation’s desire to increase trade and markets abroad, the Moroccan field of Tendrara will be crucial.”

Graham pointed out that Morocco had previously lost Algerian natural gas flows in November 2021; it was the main source of imported gas following the onset of a diplomatic crisis between them. Graham characterized the British giant’s discoveries in Morocco as ushering in a real change in the playing field, positioning the Kingdom at the forefront and producing domestic wealth and even surplus exports.

A legally binding agreement for the sale of natural gas from the Tandarra concession for a ten-year period was previously signed between Sound Energy and the National Water and Electricity Office (ONEE). Through the Maghreb-European tube, the business agreed to provide the office with 350 million cubic meters of gas annually.

One of the countries with the lowest rates of gas consumption is Morocco, which uses roughly 1 billion cubic meters of gas yearly. The two thermal power plants in Ain Beni Mathar and Tahaddart will be able to function in part because to the extraction of degradation gas. Future liquefied gas imports may be received and stored at the port of Nador in the western Mediterranean to be converted back to gas before being delivered to industrial areas and power facilities.

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Following the successful drilling of the SAK-1 and KSR-20 wells in northern Morocco, SDX Energy, a London-listed energy firm with interests in both Morocco and Egypt, announced the inauguration of two gas production regions in Morocco on Monday.

After the two producing zones are operational, SDX Energy said in a public filing that it plans to drill further wells in Morocco under its four exploration licences in 2023.
The company’s infrastructure is now linked to the SAK-1 well, which is now operational. According to test results, the gas discovery quantities will likely be larger than the 0.44 billion cubic foot (12.4 million cubic meters) pre-drill P50 estimate for gas volumes, according to the filing.
The KSR-20 well, which is still the subject of technical research, was also declared to have gas reserves by the business. The well will be operational “as soon as tie-in and permission are complete,” with the precise specifications of the gas resource to be announced later.

The business stated that it has presently identified more than 70 potential drilling zones in the statement.
Mark Reid, CEO of SDX, said: “We are satisfied with the findings of both the SAK-1 and KSR-20 wells” in response to the announcement of the gas discovery.
Reid stated that the wells “would instantly contribute to production and income growth in an area where demand and gas price are high in addition to creating a new play fairway with a number of follow-on drillable opportunities.”
According to the CEO, “Morocco is a major area of potential development for SDX and we look forward to planning more drilling in 2023,” when asked about the company’s upcoming operations in the area.

The CEO also expressed gratitude to Morocco’s National Office for Mines and Hydrocarbons (ONHYM) for providing an exceptional drilling crew and the ONHYM 525 rig, which was greatly utilized during the campaign.
In the drilling operations, SDX now has a 75% interest, while ONHYM owns a 25% interest. Four exploration and drilling licences owned by the business are located in Morocco: Sebou Central, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud.

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Sound Energy, a British company, revealed details of a 10-year agreement with the National Office for Electricity and Drinking Water to pump 350 million cubic meters of gas discovered in Tendrara into the “GME” pipeline, which was previously used by Algeria to export gas to Spain and whose ownership was transferred to Morocco.

“The gas sales agreement is an essential and long overdue milestone that will allow the firm to proceed development planning for the TE-5 Phase 2 project,” said Sound Energy CEO Graham Lyon. It also contributes to continuing conversations with potential finance partners.

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Yesterday, Tuesday, SDX Energy announced on its official website that it has already started its drilling operations in Morocco. Mark Reid, CEO of SDX commented on this event saying, “I am pleased to announce that the Company has commenced its 2021 drilling activities of up to eleven wells across our portfolio of assets with the spud of the OYF-3 appraisal/development well in Morocco”.

The company confirmed that the first phase has started with drilling 3 wells ending in June 2021 to extract 1.8 billion cubic feet of marketable gas, with the announcement of the drilling of two more wells during the coming fall.

The British company specializing in oil and gas said that the first phase of the drilling process in Morocco has started, targeting five wells this year, in an effort to meet the domestic demand for gas, before adding, “The start of this campaign has been delayed. For nearly a month due to travel restrictions related to the Covid-19 pandemic, which led to a delay in the transportation of equipment and personnel to Morocco.

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