SDX Energy Renegotiates Gas Sales Agreement in Morocco, Securing Higher Production Prices

Rabat – SDX Energy PLC, a MENA-focused exploration and production company, announced today that it has successfully renegotiated a gas sales agreement with one of its key customers in Morocco in collaboration with Morocco’s Hydrocarbons and Mines Office (ONHYM).

The new agreement, which came into effect on May 1, secures a higher gas price for SDX Energy’s production activities in Morocco.

The renegotiation of the gas sales agreement aligns with the company’s regional development strategy and opens up new opportunities for SDX Energy to expand its exploration and production efforts in Morocco.

With the increased gas price, the company is well-positioned to invest in and enhance its operations within the country. The London-based company has already begun the permitting process for its upcoming summer drilling campaign.

Highlighting the significance of Morocco in its overall strategy, SDX Energy stated in a press release that the country remains a core focus for the company.

“Morocco remains a core focus for SDX and the company is well placed to seize the opportunities presented by a very demanding energy market,” the press release said.

Jay Bhattacherjee, the Interim Executive Chairman of SDX Energy, expressed delight regarding the renegotiation of the gas sales agreement and extended gratitude to ONHYM for their continuous support.

Bhattacherjee said, “We are delighted that we have been able to renegotiate the gas sales agreement with one of our key customers and would like to thank ONHYM for its continued support.”

“Morocco remains a core area for us and we endeavour to expand our energy provider footprint in the country,” he added.

Established in 2015, SDX Energy has established a strong foothold in the MENA region, particularly in Egypt and Morocco. The London-based company has high-margin producing assets in Egypt and Morocco with long-term, fixed-price gas contracts.

SDX Energy holds a significant 75% operated working interest across its diverse Moroccan portfolio, encompassing exploration permits such as Sebou Central, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud.

Additionally, the company possesses several exploitation concessions that host producing wells, further solidifying its presence and capabilities in the region.

SDX Energy seeks to consolidate its position as a key player in the Moroccan energy sector and is actively seeking out new avenues for expansion and collaboration within the country’s market.