Morocco’s Tendrara production concession financed by Attijariwafa Bank after giving a few conditions that were to be met by the end of September.. The gas field project under Sound Energy PLC, the London-based, Morocco-focused upstream gas company, is in the second phase of its development.
Sound Energy PLC said Attijariwafa had offered up to around $237 million for Morocco’s Tendrara concession.
The approval of Morocco’s Tendrara concession loan depends on the fulfillment of several conditions, such as obtaining the approval of the Moroccan government and ministerial authorities, the approval of the tax authority on the structure of the loan and the satisfactory modification of the lender’s gas sale agreement and the execution of gas pipeline connection agreements to the satisfaction of the lender.
The loan will be used for various purposes including the design, drilling, construction and exploitation of wells and construction of a processing plant and pipeline to transport and sell the natural gas produced under Tendrara’s production concession to the National Authority of Morocco. Office of Electricity and Potable Water (ONEE). The Morocco’s Tendrara concession financing covers a term of 12 years including a two-year grace period from the first payment and a security package.
“Most of the requirements for your offer are to be expected and as such the company has been implementing some of them for some time.” We look forward to working with the promoter to complete the first financing of this magnitude for the development of a gas field in Morocco” said Chief Executive Graham Lyon.
Negotiations for gas drilling financing between Sound Energy and Attijariwafa Bank started in June 2022 and after several extensions, the parties have now finalized the agreement. The Tendrara region hosts approximately 10.68 billion cubic meters of natural gas.
Read more: Sound Energy Morocco enters into a letter of exclusivity for its micro LNG project
Morocco’s natural gas production is currently 100 million cubic meters, while the total annual consumption is 1,000 million cubic meters, which is met by the international market.
