Managem Group Acquires Sound Energy Morocco East Ltd., Ventures into Natural Gas Sector
Casablanca, The Gulf Observer: Managem Group, a prominent Moroccan mining company, has announced a landmark acquisition, signaling its entry into the upstream natural gas sector. The company has acquired Sound Energy Morocco East Ltd., a strategic move aimed at diversifying its portfolio and advancing Morocco’s energy future.
This acquisition marks a significant step for Managem Group, as it now holds a 55% stake in the Tendrara operating concession, along with 47.5% ownership of exploration licenses for Grand Tendrara and Anoual. This expansion into natural gas underscores the growing importance of clean and affordable energy sources in Africa.
Imad Toumi, CEO of Managem Group, emphasized the strategic value of this acquisition. “This venture has the potential to provide clean and affordable energy for our industries, enhancing Morocco’s energy independence and economic stability,” Toumi stated.
The Tendrara project, while modest in scale, is pivotal for Morocco’s clean energy aspirations. The development is planned in 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 in the feasibility study stage, envisions the establishment of a processing unit and a pipeline to increase production to 280 million cubic meters per year.
The financial arrangement includes an upfront payment of approximately $12 million by Managem Group, with the possibility of an additional $24.5 million contingent upon the successful completion of the second phase. The deal is pending regulatory approvals.
This acquisition not only positions Managem Group as a significant player in Morocco’s upstream natural gas market but also aligns with its commitment to a low-carbon future. This move is particularly relevant given Africa’s broader need for sustainable energy solutions.
The acquired gas assets cover an extensive area of over 23,000 square kilometers in Morocco’s eastern province. With the Tendrara concession holding a 25-year operating license and estimated resources of 10.67 billion cubic meters of natural gas, Managem Group is poised to play a crucial role in shaping Morocco’s energy landscape.
This strategic investment highlights Managem Group’s dedication to diversifying its energy portfolio and underscores the company’s role in fostering sustainable energy practices within Morocco and beyond.
