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Sound Energy, Attijariwafa bank renew

talks on funding Tendrara gas project

MOROCCO MOROCCO’S largest lender Attijariwafa Bank as well as Morocco to KCA Deutag, according to
and London-listed energy group Sound Energy a statement on Tuesday, November 1.
have renewed their talks for funding the Grand Saipem said it would also receive a 10% stake
Tendrara and Anoual gas development permit in KCA Deutag, which operates nearly 110 rigs
in northern Morocco, the MAP news agency in 20 countries.
reported on Monday, October 31. The financial and debt advisors for the deal
The deadline for binding negotiations on the included Barclays and Houlihan Lokey.
terms of the 12-year, MAD2.25bn ($206mn) Saipem had agreed with London-listed
finance deal between the two parties is now Sound Energy to conduct drilling operations for
December 15. The funds will partially cover the Tendrara gas project in 2016. Since then, the
the implementation of phase two of the facility, Italian firm has been operating a medium-sized
which is expected to cost a total of $330mn. 1500 HP gas drilling rig on the facility.
The financial agreement is subject to a num- Saipem expects to sign a $85mn deal in
ber of conditions, including the requirement March next year to transfer the rest of its onshore
that Sound Energy obtains the required licences drilling operations in the Americas, Kuwait,
to carry out phase two of the gas exploration Kazakhstan and Romania to KCA Deutag.
project and that the final investment decision Employing approximately 4,000 people,
(FID) is approved by the government. Saipem’s drilling onshore business has opera-
Sound Energy had said on August 9 that it tions in 13 countries, mainly in the Middle East
was in the process of looking for partners to and the Americas. It has a portfolio of 83 land
ramp up exploration activities under these rigs. ™
permits. Sound has a remaining $60mn worth
of development costs net to its 75% interest in
the Tendrara gas drilling permit. Morocco’s
National Bureau for Hydrocarbons and Miner-
als (ONHYM) holds the remaining 25% interest.
In November last year, Sound Energy agreed
on a binding 10-year deal to supply gas from
the second phase of its Tendrara project. The
deal would see up to 350mn cubic metres per
year supplied to Morocco’s state-owned utility
ONEE.

Saipem transfers Tendrara drilling
In related news, Italy’s Saipem has announced
the transfer of its onshore drilling operations in
Morocco’s Tendrara gas project to the Scottish
drilling firm KCA Deutag as part of a $488mn
deal to transfer its business operations in the
Republic of Congo, Saudi Arabia and the UAE Tendrara is located in northern Morocco (Image: Sound Energy)

TotalEnergies set to invest $3bn in oil

exploration, renewable energy projects

ANGOLA THE French multinational TotalEnergies has The oil major currently produces 550,000
invested $3bn in projects linked to oil explora- barrels per day (bpd) in Angola, or almost 50%
tion and renewable energy in Angola, Macao of the country’s output, and it plans to launch
News reported on November 3. three new projects in the Kwanza basin in 2023.

P6 www. NEWSBASE .com Week 44 03•November•2022