Sound Energy PLC (LON:SOU) has taken a material step towards production from the Tendrara project, with the award of a front end engineering design contract.
A consortium – comprising Enagas, Elecnor and Fomento – has signed heads of terms for the design, conditional construction and financing for the infrastructure that will be needed (including pipelines) for the commercialisation of Sound’s gas discoveries in Eastern Morocco.
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As a result, the consortium will have exclusivity to finalise the funding, construction and operation for the pipelines and production facility – the arrangement is described as being in the ‘'build-own-operate-transfer' model.
"This is a hugely important milestone for our company and I am delighted that Sound Energy is playing such a pivotal role in unlocking the first significant scale indigenous gas production in Morocco,” said James Parsons, Sound Energy chief executive.
“For Sound Energy and its shareholders, this innovative BOOT structure means that the company is now firmly on the pathway to commercialising our existing and future gas resources in Eastern Morocco, all without additional equity dilution."