The Moroccan Ministry of Energy has awarded the production concession associated with the Tendrara gas discovery to Sound Energy, paving way for the onshore gas project located in the Figuig Province in North-East Morocco.
The production concession was awarded in response to an application filed by Sound Energy and its partners in June.
Spread over an area of 133.5km2, the Tendrara field development will see drilling of up to five new horizontal development wells and recompletion of the existing TE-6 and TE-7 wells before the first gas is drawn.
As part of the onshore gas project, a gas treatment plant and compression station (CPF) are being planned to be constructed. A 120km 20inch pipeline named as Tendrara Gas Export Pipeline (TGEP) will also be laid to connect the CPF and the delivery point to the Gazoduc Maghreb Europe pipeline.
The front end engineering and design (FEED) phase for both the CPF and TGEP is in progress, said Sound Energy.
The company and its partners are targeting first gas from the Tendrara onshore gas project in about two years time at an expected mid case production rate of nearly 60 million standard cubic feet per day. According to Sound Energy, the field is likely to have a minimum period of 10 years during which 10 to 13 more wells could be drilled to sustain the production rate.
A final investment decision on the Tendrara onshore gas project is expected to be taken after completing key development milestones such as signing of a gas sales agreement, FEED development capital funding and local regulatory administrative formalities.
Sound Energy CEO James Parsons said: “I am delighted with the award of the first development concession in Eastern Morocco, which is a critical step in commercialising our gas discovery. The Company continues to make excellent progress on all fronts, including FEED, the gas sales agreement and ground works at TE-9.”
In June, Sound Energy gave a FEED contract to a consortium of Enagas, Elecnor and Fomento for the construction of the TGEP pipeline and other facilities associated with the Tendrara onshore gas project.