Morocco is one step closer to building an onshore gas liquefaction facility in Tendrara, in the Oriental region. Sound Energy, the gas exploration specialist, has just transmitted, via its 100% subsidiary Sound Energy Morocco East Limited (SEMEL), a notice to proceed to its partner Italfluid Geoenergy S.r.l, which will be followed by an “initial payment of 5 million dollars by SEMEL”, says the British junior. Through this notice, Sound Energy therefore requests the contractor to start the execution of the works defined in accordance with the project contract for the provision of a gas processing and liquefaction facility in relation to the development of the Tendrara Phase 1 concession. “We are pleased to have issued the notice to proceed to Italfluid and to have satisfied all conditions to give effect to the project contract and to the LNSA (loan note subscription agreement).
This is a key milestone for the Company and we look forward to working with our strategic partners Italfluid and Afriquia Gaz and Onhym (Office National des Hydrocarbures et des Mines) to develop the project and deliver gas to the Moroccan market in approximately 2 years,” said Graham Lyon, Sound Energy’s executive chairman. Following the issuance of this Notice of Proceedings, Sound Energy also notified Afriquia Gas that under the terms of the $18 million Credit Security Subscription Agreement, entered into on December 29, 2021, all necessary covenants have been met and that the project agreement is now in full force and effect. As a result, Sound Energy “intends to immediately draw down a portion of the funds available under the LNSA to meet the initial payment.”
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