UK’s Sound Energy sells Moroccan subsidiary to Morocco’s Managem

UK gas company Sound Energy PLC has sold its subsidiary Sound Energy Morocco East Limited to Morocco’s largest mining company Managem, the two companies announced Friday according to Reuters. 

Sound Energy said the deal,worth just over $45 million dollars, will advance development of the Tendrara gas field in eastern Morocco. Next year the field is expected to start annual production at 100 million cubic meters, Managem said in a statement. The company plans to eventually boost production to 280 million cubic meters and connect the field to an existing gas pipeline between Morocco and Spain.

Under the deal, Sound Energy will continue to hold a 20% interest in the Tendrara Production concession.

Morocco currently imports most of its annual gas needs- estimated at 1 billion cubic meters (bcm). This is predicted to grow to 8 bcm as the kingdom seeks to reduce its carbon footprint, according to the country’s energy ministry.