Sound Energy PLC has advanced work on the subsalt Tendrara concession micro liquefied natural gas plant to be built onshore Morocco with a notice to proceed issued to Italfluid Geoenergy Srl.
Following a payment of $5 million by subsidiary Sound Energy Morocco East Ltd., work on the gas processing and liquefaction plant—Phase 1 of the concession development—will begin.
The LNG plant to be designed, constructed, commissioned, operated and maintained by Italfluid, and gas is expected to be delivered to the Moroccan market in about 2 years, said Graham Lyon, Sound Energy's executive chairman.
Last year, UK-based Sound Energy closed a deal to acquire the entire issued share capital of Schlumberger Silk Route Services Ltd. (SSRS) from Schlumberger Holdings II Ltd. (OGJ Online, Aug. 31, 2021).
SSRS held a 27.5% participating interest in the Anoual and Greater Tendrara exploration permits in eastern Morocco, together with a 27.5% indirect interest in the Tendrara concession through its contractual relationship with the group.
Sound Energy now controls operated working interests of 75% in the exploration permits and in the concession. ONHYM holds the remaining 25% interest in the license area.
Aa 10-year take or pay offtake agreement has been signed with Afriquia Gaz, (OGJ Online, Feb. 17, 2020). Phase 1 micro-LNG development utilizes the existing well stock of TE-6 and TE-7, with drilling of an additional well as required to maintain the 10-year period of production plateau.