Page 16 - DMEA Week 48 2022

DMEA NEWS IN BRIEF DMEA

business new africa bna/IntelliNews

Egypt’s LNG exports vicing work at TE-6, one of the first of two wells
Wellhead inspection and remedial well ser-
in 8M 2022 exceed to be put on production in Phase 1, was also
completed safely in September.
volume and value of ment to the Project Contract effects a reduction
Project Contract Amendment: The amend-
exports for all of 2021 of the operating day rate of the plant by $3,000
to a revised $38,000 per day over its 10-year
Egypt’s LNG exports for the first eight months term, an approximate 7% reduction. The reduc-
(January-August) of the current year exceeded tion in the operating day rate represents savings
the volume and value of exports for all of 2021, of $1.1mn per year to the project, and $11mn
Petroleum Minister Tarek El Molla has said. over the 10-year term. Additionally, the Parties
Egypt exported 8mn tonnes of LNG generat- have agreed to exercise their best endeavours to
ing $5.08bn in revenues in the first eight months execute an option agreement under which the
of 2022, compared to 7mn tonnes of LNG ($3.9 Company will have the right (but not the obliga- additional value upside from the micro-LNG
revenues) exported in the full year 2021. The tion) to acquire the micro-LNG facilities, or the development.”
European Union was the primary overseas entity owning and leasing the facilities, after five Sound Energy, November 29 2022
destination for Egypt’s LNG, absorbing 90% of years of operation for a sum of circa $9.15mn, a
exports in the first eight months of the current reduction of $1.5mn from the previous “option
year, up from 80% over 2021. to purchase” sum agreed in principle between PETROCHEMICALS
Egypt has become a major LNG exporter the Parties.
over the past few years, with export volumes In return for the Contractor agreeing a reduc- Morocco’s fertiliser
increasing by 44% y/y in fiscal year (July-June) tion in the operating day rate under the Project
2021/22 as 84 shipments of liquefied natural gas Contract, the Contractor will be paid by the group OCP sees revenues
were exported from the gas liquefaction plants in Concession owners (Sound Energy, 75% work-
Idku and Damietta. ing interest) additional staged payments of an surge 55% y/y to reach
bna/IntelliNews, November 29 2022 aggregate of $6.5mn during the construction
phase, in doing so providing the Company with $8.3bn in 9M 2022
Sound Energy provides the right to own the permanent on-site LNG Morocco’s fertiliser group OCP saw a 55% y/y
storage tank facility once the plant is commis-
update on Phase 1 sioned and LNG production starts. These staged surge in revenue in the first nine months of this
payments, which are intended to be borne pro year to MAD 89.5bn ($8.26bn) on increased
micro-LNG development rata by all of the Tendrara Production Con- sales across the group’s product categories due
cession JV partners, will be presented to the to favourable market conditions, OCP said in a
onshore Morocco December Tendrara Concession Management statement on Tuesday, November 29.
The group said that its sales of phosphate rock
Committee Meeting (the TMCM), with the ini-
Sound Energy, the energy transition company, tial payment likely to be advanced to the Con- increased by 74% y/y in the January-September
has provided a progress update on its Phase 1 tractor in full by the Company on behalf of the period, while its sales of phosphoric acid were
micro-LNG development and has announced JV partners ahead of the TMCM from proceeds down by 6% y/y due to lower export volumes to
an amendment to the project contract entered of the Company’s existing project debt facility, Europe and India.
into between Italfluid Geoenergy and Sound which is in place with Afriquia Gaz SA. The LNG Fertiliser sales rose by 68% y/y as prices
Energy’s wholly owned subsidiary, Sound storage tank will remain part of the Operation increased since the start of the year, despite the
Energy Morocco East Ltd (SEMEL), in respect and Maintenance responsibility of the Contrac- gradual decline since July due to lower demand
of the design, procurement, construction, oper- tor over the life of the Project Contract. from key markets, especially Brazil, as well as
ation and maintenance of Tendrara Concession Graham Lyon, Sound Energy’s Executive high inventory levels.
micro-LNG facilities onshore Morocco. The Chairman, commented: “We are working The group’s earnings before interest, taxes,
Contractor was previously provided with Notice closely with the Contractor to ensure the project depreciation and amortisation (EBITDA)
to Proceed under the Project Contract, as con- remains on track to meet the joint venture’s deliv- improved to 48% in the nine-month period,
firmed by the Company on February 16, 2022. ery obligations to Afriquia Gaz under the LNG compared to 42% in the same period last year.
Phase 1, Micro-LNG Development: Progress sale and purchase agreement. The restructuring This allowed the group to redirect its exports to
Update: Good progress continues to be made of the payment structure under the Project Con- high-growth markets
on the Company’s Phase 1 micro-LNG devel- tract increases our alignment with Italfluid dur- Fertiliser provided 65% of total sales at the
opment, with construction of the LNG storage ing the construction and commissioning phase end of September, up from 60% during the same
tank ongoing and wellhead work undertaken. whilst notably facilitating a valuable reduction period last year. South America, Asia and Africa
Work on the LNG storage tank has included site in the operating day rate of the facility of some accounted for 87% of the group’s exports.
preparation, excavation for the tank foundation, $1.1mn per annum over the 10-year contract. OCP invested MAD15.22mn ($1.4mn) to
laying the concrete base for the tank foundation, Additionally, under the ‘option to purchase’ expand operations in the same period, nearly
laying reinforcing bar and installing the rein- agreement, which we expect to agree and execute double the amount it invested a year earlier.
forced concrete columns on the base, of which in the coming weeks, the proposed reduction of Morocco holds 75% of the globe’s reserves
there are 60 in total and each 4 metres high. Once the purchase price of the facility (or operating of phosphate rock, a main element in fertiliser
complete, the tank will stand 24 metres high and company, as the case may be) provides a valu- production.
be 22 metres in diameter. able opportunity for Sound Energy to access bna/IntelliNews, December 1 2022

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