Morocco’s Gas Boom: Sound Energy Extends Exploration Licenses, Eyeing Export Potential
Morocco’s journey towards becoming a major player in the natural gas market just took a significant step forward. British energy company, Sound Energy PLC, recently announced an extension to their exploration licenses in eastern Morocco, securing their stake in the region for another 11 years. This agreement, reached with Morocco’s National Office of Hydrocarbons and Mines (ONHYM), highlights the growing confidence in the nation’s untapped energy reserves.
The extended license includes an initial 24-month period, ending in January 2025, with a potential extension until September 2028, pending approval from relevant government sectors. As part of their commitment, Sound Energy plans to drill the exploratory well M5, further unlocking the region’s potential.
This development comes on the heels of bold statements made by Sound Energy CEO, Graham Lyon. In late 2022, Lyon declared that Morocco possesses vast natural gas reserves, enough to not only achieve self-sufficiency but also propel the nation into the league of international gas exporters.
Lyon highlighted two key projects underway: one focused on supplying Liquefied Natural Gas (LNG) to major industrial markets, and another on developing a gas pipeline to power Morocco’s electricity grid. He specifically mentioned a project with the potential to deliver approximately 100 million cubic meters of LNG annually to industrial markets, with production and sales projected to commence as early as the first quarter of 2024.
These ambitious plans are backed by promising figures. Lyon revealed that Morocco holds an estimated 20 trillion cubic feet of natural gas reserves, a figure he deems “record-breaking” and one that firmly positions the nation as a future energy exporter. The Tendrara field, in particular, is expected to play a pivotal role in realizing Morocco’s energy goals, serving as a springboard for developing international markets and partnerships.
Currently, Sound Energy manages three fields in eastern Morocco, holding a 47.5% stake. This venture also includes Schlumberger with a 27.5% share and ONHYM with 25%. In these new projects, Sound Energy will hold a controlling 60% stake, while ONHYM will retain the remaining 40%.
This strategic partnership between Sound Energy and Morocco signifies a turning point in the nation’s energy landscape. With vast reserves waiting to be tapped, Morocco is poised to become a key player in the global gas market, attracting investment, creating jobs, and securing a brighter energy future for its people.
