Page 8 - GLNG Week 44 2021

GLNG AFRICA GLNG

Sound Energy, Afriquia Gaz delay

deadline for signing LNG agreement

PROJECTS & UK-BASED Sound Energy has reached agree- Sound Energy did not divulge any details
COMPANIES ment with Afriquia Gaz (Morocco) on pushing about the progress of efforts to meet these pre-
back the deadline for meeting the preconditions conditions. However, Graham Lyon, the compa-
for signing the Phase 1 LNG sale and purchase ny’s executive chairman, said he was optimistic
agreement (SPA) covering future supplies from that the parties would be able to strike a deal
a small-scale natural gas liquefaction plant slated soon.
for construction at the Tendrara licence area in “Much work has been completed in the last
eastern Morocco. months to conclude all conditions precedent to
In a statement, Sound Energy said the par- the LNG SPA in London, Rabat and Pescara,” he
ties had agreed to postpone the end date until said. “We are confident that all conditions prec-
November 30. According to previous reports, edent to the LNG SPA will be satisfied and FID The extension
the two companies had said previously that and the ‘Notice to Proceed’ with Phase 1 devel-
execution of the SPA would depend on their opment can be announced and all contracts of the deadline
ability to meet certain conditions by October executed.”
29. Sound Energy obtained a majority stake in will not affect
The extension of the deadline will not affect the Tendrara concession earlier this year, when
the nature of the preconditions for signing it acquired a 27.5% interest in the project from the nature of the
the SPA, Sound Energy noted. The company Schlumberger Silk Route Services (SSRS), an preconditions for
had explained in July that these preconditions affiliate of Schlumberger, one of the world’s
included signing a credit agreement under largest oilfield service providers (OSPs). The signing the SPA,
which Sound Energy would take out an $18mn deal pushed the UK-based company’s holdings
secured loan from Afriquia Gaz with a 12-year up from 47.5% to 75%. Subsequently, though, Sound Energy
repayment term and a 6% annual interest rate. Sound Energy struck a deal with Afriquia Gaz
The partners were also supposed to execute a that provided for the latter company to buy a noted.
project contract with Italfluid Geoenergy (Italy) stake in the former and to buy gas from the for-
for the construction of a gas-processing and liq- mer over a period of 10 years.
uefaction plant for Phase 1 development. Addi- Sound Energy has said it hopes these deals
tionally, Afriquia Gaz was required to secure will complement its plans for the development of
agreement in principle for the sale of at least TE-5 Horst, a field within the Tendrara conces-
60% of minimum take-or-pay volumes to down- sion that contains about 650bn cubic feet of gas
stream buyers and obtain regulatory approval for in place (GIP). TE-5 Horst is expected to provide
the transport of LNG via tankers and the sale of the feedstock for the micro-LNG plant that the
LNG. firm wants to build in eastern Morocco.™

P8 www. NEWSBASE .com Week 44 05•November•2021