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Rabat – The Managem Group, a leading Moroccan mining company, has taken a significant step towards diversifying its portfolio and shaping Morocco’s energy future with the acquisition of Sound Energy Morocco East Ltd.
This strategic move marks the group’s entry into the upstream natural gas sector, underscoring the growing importance of clean and affordable energy sources in Africa.
The acquisition, finalized after a competitive selection process, grants Managem Group a 55% stake in the Tendrara operating concession, alongside 47.5% ownership of exploration licenses for Grand Tendrara and Anoual.
This strategic investment is anticipated to benefit Morocco in several ways. Imad Toumi, CEO of Managem Group, highlighted the acquisition’s potential to provide “clean and affordable energy for its industries,” while also contributing to the country’s energy independence and economic stability.
While the Tendrara project itself is considered modest, it represents a crucial step towards Morocco’s clean energy goals. The development plan is divided into two phases.
The first phase, currently under construction, aims to produce 100 million cubic meters of liquefied natural gas (LNG) annually by mid-2025. The second phase, still under feasibility study, envisions a processing unit and pipeline to significantly boost production to 280 million cubic meters per year.
Read also: Managem Profits Drop 13% in Q1 2024 Due to Operations Halt, Cobalt Price Drop
The financial details involve an upfront payment of approximately $12 million by Managem Group, with the potential for an additional $24.5 million upon completion of phase two. Regulatory approvals remain a necessary hurdle before the deal is finalized.
This acquisition signifies a major shift for Managem Group, establishing them as a player in the upstream natural gas market within Morocco. Furthermore, it reinforces their commitment to a low-carbon future, aligning with Africa’s broader need for sustainable energy solutions.
The vast portfolio of gas assets acquired spans over 23,000 square kilometers in Morocco’s eastern province.
With the Tendrara concession boasting a 25-year operating license and estimated resources of 10.67 billion cubic meters of natural gas, Managem Group is keen to position itself for a significant role in shaping Morocco’s energy landscape.
