In a strategic pivot towards renewable energy investment, a British company has successfully finalized a deal that sees its exit from three gas sites in Morocco. Sound Energy, a UK-based enterprise, has sold its subsidiary Sound Energy Merja Limited to a Moroccan mining company, following shareholder approval and the satisfaction of necessary conditions.
As part of this transaction, which was confirmed on May 26, 2026, Sound Energy agreed to divest its remaining 20% stake in the Tendrara gas field to the mining firm for a deal valued at approximately $57 million. This sale marks the conclusion of Sound Energy's involvement in the Moroccan gas sector, specifically in three key locations: the Tendrara field, the Anoual exploration license, and the Greater Tendrara exploration license.
In this strategic exit, Sound Energy has entered into a binding purchase agreement with the mining company, facilitating the sale of its remaining 20% stake in the Tendrara concession through a complete acquisition of Sound Energy Merja Limited. Post-transaction, the Moroccan mining company and its subsidiaries will hold a 75% operational stake in the Tendrara field, while the National Office of Hydrocarbons and Mines (ONHYM) retains the remaining 25%.
Additionally, Arran Energy Holdings Limited, a subsidiary of Sound Energy, has relinquished its 27.5% stake in the Anoual exploration license and has also surrendered its rights in the Greater Tendrara exploration license. Following the completion of these transactions, Sound Energy is expected to have around $11 million in cash reserves, enabling it to settle its liabilities effectively.
This financial flexibility positions Sound Energy to pursue disciplined and cash-generating acquisition opportunities in the renewable energy sector while enhancing its access to capital markets, whether through equity or debt. Alongside this acquisition strategy, the company intends to continue developing its operations in Morocco, particularly its solar energy platform (Tayra) and its hydrogen and helium exploration activities (HyMaroc).
According to CEO Majid Shafiq, this announcement goes beyond merely concluding a transaction; it signifies a remarkable success in executing the strategy laid out in May. "Our focus is now on implementation, as we have the necessary capital to invest, a clear investment strategy in place, and we are currently evaluating opportunities that will allow us to build a more diverse and profitable energy project," he stated.
Shafiq further emphasized the commitment to developing existing operations in Morocco, asserting, "We now have the financial strength and flexibility to achieve our strategy." He also expressed gratitude to their partner, the mining company, for the excellent working relationship established over the past two years, which facilitated the successful completion of this deal.
The divestment marks the end of Sound Energy's relationship with the Moroccan gas sector as the company aims to concentrate more on renewable energy projects, which it views as more lucrative at this time. Prior to this decision, Sound Energy had agreed in December 2024 to sell its Moroccan gas assets to the mining company, which included the following stakes: 55% of the Tendrara field (retaining a 20% stake through its subsidiary Sound Energy Merja Limited), 47.5% of the Greater Tendrara license (retaining 27.5% through Arran Energy Holdings Limited), and 47.5% of the Anoual exploration license (also retaining 27.5% via Arran Energy Holdings Limited).
The agreement outlines the development of the Tendrara concession in two main phases, which include establishing a small LNG production facility with a total capacity of 54 billion cubic feet of gas and a 120-kilometer pipeline for additional production of 128 billion cubic feet. Mana Energy Ltd, wholly owned by the mining company, has made significant progress in the first phase of the project as the operator with a 55% stake; however, the timeline for commencing gas production has experienced delays as the project advances through the construction and operational phases.
Initially, gas production was expected to commence in October 2025, but it is now anticipated to begin in the third quarter of 2026. Throughout this period, the project has also faced broader inflationary pressures within the sector, affecting both capital and operational expenditures. The final investment decision regarding the second phase of the project remains under evaluation by the joint venture partners.
In light of these developments, the board of the British company concluded that the sale of Sound Energy Merja, which developed the Tendrara concession, along with the withdrawal from exploration licenses in Anoual and Greater Tendrara, represents an attractive opportunity to enhance shareholder value from the company’s exploration and production portfolio in Morocco. This decision will significantly reduce future financing requirements, allowing the company to focus on the next stage of its growth.
As reported by attaqa.net.
