Moroccan Attijariwafa Bank has granted British petroleum company Sound Energy a fund of $237 million to enhance gas infrastructure in the kindgom’s Tendrara region.
The funds will be used for drilling, operating wells, and constructing a pipeline to transport the natural gas to the buyer, the Moroccan National Office of Electricity and Drinking Water.
The funding includes a 12-year term including a two-year grace period from first drawdown and a security package.
The Tendrara region boasts the Kingdom’s largest natural gas discovery, estimated at approximately 377,000 billion cubic feet.
Ongoing gas discoveries
Sound Energy holds the largest area for hydrocarbon exploration in Morocco, covering 28,000 square kilometers.
It currently holds a 75% interest in the gas drilling permit, while Morocco’s National Bureau for Hydrocarbons and Minerals (ONHYM) holds the remaining 25% interest.
Morocco produces 100 million cubic meters of natural gas annually, covering 10% of its total consumption. The remaining demand is met through international markets.
Morocco expects the ongoing discoveries will increase the country’s natural gas production by 300 million cubic meters.
The Moroccan government envisions reaching 400 million cubic meters in the coming years, which would meet 40% of the country’s energy needs, thanks to the development of the Tendrara and Larache regions.
