Page 17 - AfrOil Week 48 2022

AfrOil NEWS IN BRIEF AfrOil

business new africa bna/IntelliNews

Of particular interest was “a very large Creta- be 22 metres in diameter. of the Company’s existing project debt facility,
ceous carbonate reef developed on the distinct Wellhead inspection and remedial well ser- which is in place with Afriquia Gaz SA. The LNG
Dakar Basement High,” which, Dana said, bore vicing work at TE-6, one of the first of two wells storage tank will remain part of the Operation
similarities to Eni’s 21.5 trillion cubic foot Zohr to be put on production in Phase 1, was also and Maintenance responsibility of the Contrac-
field 160 km to the north-west. completed safely in September. tor over the life of the Project Contract.
bna/IntelliNews, November 28 2022 Project Contract Amendment: The amend- Graham Lyon, Sound Energy’s Executive
ment to the Project Contract effects a reduction Chairman, commented: “We are working
Sound Energy provides of the operating day rate of the plant by $3,000 closely with the Contractor to ensure the project
to a revised $38,000 per day over its 10-year remains on track to meet the joint venture’s deliv-
progress update on Phase term, an approximate 7% reduction. The reduc- ery obligations to Afriquia Gaz under the LNG
tion in the operating day rate represents savings sale and purchase agreement. The restructuring
1 micro-LNG development of $1.1mn per year to the project, and $11mn of the payment structure under the Project Con-
over the 10-year term. Additionally, the Parties tract increases our alignment with Italfluid dur-
onshore Morocco have agreed to exercise their best endeavours to ing the construction and commissioning phase
execute an option agreement under which the whilst notably facilitating a valuable reduction
Sound Energy, the energy transition company, Company will have the right (but not the obliga- in the operating day rate of the facility of some
has provided a progress update on its Phase 1 tion) to acquire the micro-LNG facilities, or the $1.1mn per annum over the 10-year contract.
micro-LNG development and has announced an entity owning and leasing the facilities, after five Additionally, under the ‘option to purchase’
amendment to the project contract entered into years of operation for a sum of circa $9.15mn, a agreement, which we expect to agree and execute
between Italfluid Geoenergy and Sound Ener- reduction of $1.5mn from the previous “option in the coming weeks, the proposed reduction of
gy’s wholly owned subsidiary, Sound Energy to purchase” sum agreed in principle between the purchase price of the facility (or operating
Morocco East Limited (SEMEL), in respect of the Parties. company, as the case may be) provides a valu-
the design, procurement, construction, opera- In return for the Contractor agreeing a reduc- able opportunity for Sound Energy to access
tion and maintenance of Tendrara Concession tion in the operating day rate under the Project additional value upside from the micro-LNG
micro-LNG facilities onshore Morocco. The Contract, the Contractor will be paid by the development.”
Contractor was previously provided with Notice Concession owners (Sound Energy, 75% work- Sound Energy, November 29 2022
to Proceed under the Project Contract, as con- ing interest) additional staged payments of an
firmed by the Company on February 16, 2022. aggregate of $6.5mn during the construction NCDMB unveils Solewant’s
Phase 1, Micro-LNG Development: Progress phase, in doing so providing the Company with
Update: Good progress continues to be made the right to own the permanent on-site LNG new equipment, academy
on the Company’s Phase 1 micro-LNG devel- storage tank facility once the plant is commis-
opment, with construction of the LNG storage sioned and LNG production starts. These staged The Nigerian Content Development and Moni-
tank ongoing and wellhead work undertaken. payments, which are intended to be borne pro toring Board (NCDMB) has unveiled new prod-
Work on the LNG storage tank has included site rata by all of the Tendrara Production Con- ucts and solutions factory acquired by Solewant
preparation, excavation for the tank foundation, cession JV partners, will be presented to the Group, one of Nigeria’s foremost fabrication and
laying the concrete base for the tank foundation, December Tendrara Concession Management pipe coating firm located at Onne, Rivers State.
laying reinforcing bar and installing the rein- Committee Meeting (the TMCM), with the ini- The New products and Solutions include
forced concrete columns on the base, of which tial payment likely to be advanced to the Con- Solewant SSPC and Paints products, Solewant/
there are 60 in total and each 4 metres high. Once tractor in full by the Company on behalf of the SCOPEX Academy and Solewant- made in
complete, the tank will stand 24 metres high and JV partners ahead of the TMCM from proceeds Nigeria steel pipe.

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