Tendrara Gas Sales Agreement Update

Source: www.gulfoilandgas.com 5/1/2019, Location: Africa

Sound Energy, the Moroccan focused upstream gas company, provides an update on its negotiations of a Gas Sales Agreement ("GSA") for the Company's gas resources in the Tendrara production concession in Eastern Morocco.

The Company announces that it continues to negotiate the terms of a GSA and confirms that, as part of those ongoing negotiations, it has received a letter setting out a non-binding offer ("the Offer") from the Ministry of Energy and Mines for the Kingdom of Morocco.

The Offer envisages that all gas produced by the existing Tendrara production concession will be sold under a GSA to Morocco's Office National de l'Electricité et de l'Eau Potable ("ONEE"), the state power company in Morocco.

Under the Offer, the sales price of the gas from 2022 is proposed to be structured with both a variable element* linked to the Brent oil price and a fixed element paid to the Company to fully cover the transportation cost of the gas in the planned Tendrara Gas Export Pipeline. These fixed transportation costs are expected to be capped at some $12.2 million per year under the terms of the Build Own Operate Transfer proposal under negotiation with a consortium led by Enagas of Spain.

The Offer would result post end 2021, based on current oil prices of around $70 to $75 per barrel Brent, in a total gas sales price (variable plus fixed) of some $8.50 to $9.00 per million British Thermal Unit ("mmBTU"), assuming a $1/mmBTU pipeline fee**.

Prior to end 2021, ONEE proposes to purchase any gas at the price at which the Moroccan state sells gas to ONEE.

Sound will now continue to negotiate the Offer with a view to closing out a binding Heads document. The GSA is an important milestone in the progression of the TE-5 field to commercial production.

For more information about related Opportunities and Key Players visit North Africa Projects


Nigeria >>  8/16/2022 - Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa, is pleased to announce that...
Canada >>  8/15/2022 - Archaea Energy Inc. (“Archaea,” “the Company,” or “we”) (NYSE: LFG), an industry-leading renewable natural gas (“RNG”) company, today announced that i...

United Kingdom >>  8/9/2022 - Centrica and Delfin Midstream Inc. announced the signing of a Heads of Agreement to purchase 1.0 million tonnes per annum (MTPA) of Liquefied Natural ...
Australia >>  8/8/2022 - Beach Energy (BPT, Beach) is pleased to confirm finalisation and signing of the LNG Sale and Purchase Agreement (“SPA”) with BP Singapore Pte. Limited...

Brazil >>  8/5/2022 - Petrobras, following up on the release disclosed on 05/24/2022, informs that it has celebrated a new addendum to the natural gas purchase contract wit...
Pakistan >>  8/3/2022 - Engro Eximp FZE, a subsidiary of Engro Corporation, announced today that it has entered a Memorandum of Understanding (“MOU”) with Excelerate Energy, ...

Related Categories: Coal  Electricity  General  Natural Gas  Oil 

Related Articles: Coal  Electricity  General  Natural Gas  Oil 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.