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Rabat – British energy company Sound Energy has announced the official settlement of its tax dispute with the Moroccan Tax Authority, saying this will allow the company to focus on optimizing its resources for field development.
The company received court papers confirming the withdrawal of all cases, bringing an end to the legal proceedings, said the energy firm in a press release on Thursday.
Sound Energy previously recalled reaching “a full and final” settlement agreement with the Moroccan tax authorities, as indicated in their announcement on May 4, 2023, regarding the cases of Sound Energy Morocco East and Sound Energy Morocco SARL AU.
“The company is pleased to announce that the court has now confirmed in writing its judgement – with both remaining court cases now formally closed,” added the statement.
The energy firm faced several disruptions in 2022 due to the tax issues, slowing down its operations. However, the company managed to make progress in its engineering and manufacturing efforts during that period.
Sound Energy’s settlement agreement included a phased payment schedule spread over six years, amounting to approximately $2.5 million (19.9 million MAD).
Read also: Sound Energy, Morocco’s Attijariwafa Bank Extend Negotiation for Gas Drilling Financing
The agreement served as a “full and final” settlement against the original claim of around $23.95 million (MAD 238.5 million), according to the company.
The company’s management expressed its satisfaction with the outcome, an opportunity for Sound Energy to recover from the setbacks due to the prolonged legal proceedings, and focus on its operations and long-term growth plans.
The UK-based energy company is focused on the exploration, production, and development of natural gas resources.
It operates in various regions, including Morocco, where it has significant assets and exploration activities.
