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London-listed energy firm Sound Energy has received an offer from Morocco’s Attijariwafa Bank to finance the second phase of its Tendrara production concession in Morocco.
The offer includes a maximum financing of $237 million, subject to certain conditions being met by September 2023, Sound Energy’s said in a statement.
The loan will be used for the design, drilling, construction and operation of wells, a treatment facility and a gas pipeline to transport and sell the natural gas produced under the Tendrara Production Concession to Morocco’s National Office of Electricity and Drinking Water.
The financing package comprises a 12-year term with a two-year grace period from the first drawdown.
The loan approval depends on conditions such as obtaining approval from Moroccan governmental and ministerial authorities, tax authority clearance for the loan structure, amendment of the gas sales agreement to the lender’s satisfaction, etc.
In June 2022, Sound Energy entered into an arrangement with Attijariwafa Bank to secure project debt financing for the second phase development of Tendrara concession.
The UK firm presently holds a 75 percent stake in the concession, while Morocco’s National Bureau for Hydrocarbons and Minerals owns the remaining 25 percent.
In June, Sound Energy signed an agreement with Calvalley Petroleum to secure funding for the Tendrara exploitation concession and Grand Tendrara exploitation permit in Morocco.
(Writing by D Madhura; Editing by Anoop Menon)
