The funding will be used to develop its existing discovery in Eastern Morocco, said the European and African focused upstream gas company based in the UK.
AFG, a financial institution based in Morocco is also the fund manager to Oil & Gas Investment Fund (OGIF) which in turn is a partner in Sound Energy’ activities in Morocco.
Currently, Sound Energy’s estimation of the TGEP pipeline is around $60m for a 12inch pipeline and for a 20inch pipeline it would come to $100m. As part of the project, the upstream company is looking to construct a new pipeline in the Figuig Province that would transport gas from its Tendrara license to the Gazoduc Maghreb Europe (GME) pipeline.
Sound Energy stated: “The TGEP is a critical part of the infrastructure which will be required to support the commercialisation of gas from Tendrara by connecting the proposed Tendrara processing facilities to the GME pipeline.
“Connection to the GME pipeline and therefore to the Moroccan and Southern European gas markets, would support Sound Energy's strategy to access infrastructure connected to growing domestic and international gas markets.”
Earlier in the year, Sound Energy had entered into binding agreements with OGIF for the conditional acquisition of a further 20% stake in the latter’s exploration permits in Tendrara.
The acquisition, which would increase Sound Energy’s stake in Tendrara to 47.5%, is likely to be completed by the end of the third quarter. It will also result in OGIF becoming a shareholder in the UK-based upstream company.
