{"id":12883,"date":"2022-11-29T08:08:21","date_gmt":"2022-11-29T08:08:21","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=12883"},"modified":"2022-11-29T08:09:05","modified_gmt":"2022-11-29T08:09:05","slug":"morocco-sound-energy-reports-micro-lng-development-progress-amendment-of-italfluid-project-contract","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-reports-micro-lng-development-progress-amendment-of-italfluid-project-contract\/","title":{"rendered":"MOROCCO: Sound Energy Reports on Micro LNG Development Progress &#038; Amendment of Italfluid Project Contract"},"content":{"rendered":"<p class=\"cy\"><span class=\"cu\">Sound Energy has provided a progress update on its Phase 1 micro LNG development and announced an amendment to the project contract<\/span> <span class=\"cr\">entered into between Italfluid Geoenergy S.r.l.<\/span> \u00a0<span class=\"cr\">and Sound Energy and<\/span>\u00a0<span class=\"da\">together with the Contractor in respect of the design, procurement, construction, operation and maintenance of Tendrara Concession micro LNG facilities onshore Morocco. The Contractor was previously provided with &#8216;Notice to Proceed&#8217; under the Project Contract, as confirmed by the Company on 16 February 2022.<\/span><\/p>\n<p class=\"cy\"><span class=\"cz\">\u00a0<\/span><span class=\"cu\">Phase 1, Micro LNG Development: Progress Update<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"cy\"><span class=\"cu\">Good progress continues to be made on the Company&#8217;s Phase 1 micro LNG development, with construction of the LNG storage tank ongoing and wellhead work undertaken. Work on the LNG storage tank has included site preparation, excavation for the tank foundation, laying the concrete base for the tank foundation, laying reinforcing bar and installing the reinforced concrete columns on the base, of which there are 60 in total and each 4m high. Once complete, the tank will stand 24m high and be 22m in diameter.<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"cy\"><span class=\"cu\">Wellhead inspection and remedial well-servicing work at TE-6, one of the first of two wells to be put on production in Phase 1, was also completed safely in September.<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"cy\"><span class=\"cu\">Project Contract Amendment<\/span><span class=\"cz\">\u00a0<\/span><\/p>\n<p class=\"cy\"><span class=\"cu\">The amendment to the Project Contract effects a reduction of the operating day rate of the plant by US$3,000 to a revised US$38,000 per day over its 10-year term, an approximate 7% reduction. The reduction in the operating day rate represents savings of US$1.1 million per year to the project, and US$11 million over the 10-year term. Additionally, the Parties have agreed to exercise their best endeavours to execute an option agreement under which the Company will have the right (but not the obligation) to acquire the micro LNG facilities, or the entity owning and leasing the facilities, after five years of operation for a sum of c.US$9.15 million, a reduction of US$1.5 million from the previous &#8220;option to purchase&#8221; sum agreed in principle between the Parties.<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"cy\"><span class=\"cu\">In return for the Contractor agreeing a reduction in the operating day rate under the Project Contract, the Contractor will be paid by the Concession owners (Sound Energy, 75% working interest) additional staged payments of an aggregate of US$6.5 million during the construction phase, in doing so providing the Company with the right to own the permanent on-site LNG storage tank facility once the plant is commissioned and LNG production starts. These staged payments, which are intended to be borne pro rata by all of the Tendrara Production Concession JV partners, will be presented to the December Tendrara Concession Management Committee Meeting, with the initial payment likely to be advanced to the Contractor in full by the Company on behalf of the JV partners ahead of the TMCM from proceeds of the Company&#8217;s existing project debt facility which is in place with Afriquia Gaz S.A. The LNG storage tank will remain part of the Operation and Maintenance responsibility of the Contractor over the life of the Project Contract.<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"cy\"><span class=\"cu\">Graham Lyon, Sound Energy&#8217;s Executive Chairman, commented:<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"db\"><span class=\"cp\">&#8220;We are working closely with the Contractor to ensure the project remains on track to meet the joint venture&#8217;s delivery obligations to Afriquia Gaz under the LNG sale and purchase agreement. The restructuring of the payment structure under the Project Contract increases our alignment with Italfluid during the construction and commissioning phase whilst notably facilitating a valuable reduction in the operating day rate of the facility of some US$1.1 million per annum over the 10-year contract. Additionally, under the &#8220;option to purchase&#8221; agreement, which we expect to agree and execute in the coming weeks, the proposed reduction of the purchase price of the facility (or operating company, as the case may be) provides a valuable opportunity for Sound Energy to access additional value upside from the micro LNG development.<\/span><span class=\"cu\">&#8220;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sound Energy has provided a progress update on its Phase 1 micro LNG development and announced an amendment to the project contract entered into between Italfluid Geoenergy S.r.l. \u00a0and Sound &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-reports-micro-lng-development-progress-amendment-of-italfluid-project-contract\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7446,11],"tags":[9479,10181,1428,1629,7689,7691],"class_list":["post-12883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-north-africa","category-top-news","tag-afriquia-gaz","tag-italfluid-geoenergy","tag-lng","tag-morocco","tag-sound-energy","tag-tendrara-concession","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1280%2C720&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3lN","jetpack-related-posts":[{"id":11854,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-issues-of-notice-to-proceed-for-tendrara-concession-phase-1-development\/","url_meta":{"origin":12883,"position":0},"title":"MOROCCO: Sound Energy  Issues of Notice to Proceed for Tendrara Concession Phase 1 Development","author":"","date":"February 17, 2022","format":false,"excerpt":"\u00a0 Sound Energy has announced the issue to Italfluid Geoenergy S.r.l. of notice to proceed in respect of the project contract for the Tendrara Concession mLNG Facilities Onshore, Kingdom of Morocco, between the Group and the Contractor.\u00a0 The Notice to Proceed has been issued to the Contractor by Sound Energy's\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":9618,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-enters-into-a-letter-of-exclusivity-extension-of-lng-heads-of-terms-in-tendrara-phase-1-development\/","url_meta":{"origin":12883,"position":1},"title":"MOROCCO: Sound Energy Enters into a Letter of Exclusivity &#038; Extension of LNG Heads of Terms in Tendrara Phase 1 Development","author":"","date":"January 3, 2021","format":false,"excerpt":"Sound Energy has provided an update in relation to the proposed micro liquefied natural gas (mLNG) phase 1 development project for the TE-5 Horst (the Phase 1 Development) at the Tendrara Production Concession.\u00a0 Letter of Exclusivity\u00a0 Sound Energy Morocco East Limited (SEMEL), the Company's wholly owned subsidiary, has entered into\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":15407,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-announces-first-commissioning-gas-at-the-tendrara-gas-development\/","url_meta":{"origin":12883,"position":2},"title":"MOROCCO: Sound Energy Announces First Commissioning Gas at the Tendrara Gas Development","author":"","date":"December 8, 2025","format":false,"excerpt":"Sound Energy has announced that it has received notification from the operator of the Tendrara Production Concession, Mana Energy Ltd (55%), of the commencement of the initial commissioning activities for the TE-5 Horst development project in the Tendrara Production Concession\u00a0that first gas has entered the gas gathering system (GGS) in\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":11477,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-announces-phase-1-development-loan-note-financing-and-lng-sale-purchase-agreement\/","url_meta":{"origin":12883,"position":3},"title":"MOROCCO: Sound Energy Announces Phase 1 Development Loan Note Financing and LNG Sale &#038; Purchase Agreement","author":"","date":"January 1, 2022","format":false,"excerpt":"Sound Energy, the energy transition company, is delighted to announce the entry of binding conditional agreements in respect of a US$18 million Phase 1 Tendrara LNG Development loan note financing and that, with the other remaining conditions precedent to the Phase 1 LNG gas sales agreement announced by the Company\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":10644,"url":"https:\/\/www.oilnewskenya.com\/index.php\/sound-energy-enters-lng-spa-with-afriquia-gaz\/","url_meta":{"origin":12883,"position":4},"title":"Sound Energy Enters LNG SPA with Afriquia Gaz","author":"","date":"July 29, 2021","format":false,"excerpt":"Sound Energy has provided the following update in relation to the Company's micro liquified natural gas (mLNG) phase 1 development plan for the TE-5 Horst development\u00a0 at the Tendrara Production Concession.\u00a0 Highlights\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0Ten (10) year take or pay LNG sale and purchase agreement entered into with Afriquia Gaz \u00b7\u00a0\u00a0\u00a0\u00a0\u00a32 million\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":14286,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-announces-audited-final-results-for-the-year-ended-31-december-2023\/","url_meta":{"origin":12883,"position":5},"title":"MOROCCO: Sound Energy Announces Audited final results for the year ended 31 December 2023","author":"","date":"April 24, 2024","format":false,"excerpt":"HIGHLIGHTS Substantial 2023 Project execution undertaken -\u00a0positioned for significant operational and financial progress through development of pivotal Moroccan Tendrara Production Concession, with rig activities from June 2024 and plant commissioning planned by year end \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Phase 1 Micro LNG (mLNG) project (Phase 1): o\u00a0\u00a0Completed mLNG tank foundations and manufacturing of the\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=12883"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12883\/revisions"}],"predecessor-version":[{"id":12885,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12883\/revisions\/12885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/8449"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=12883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=12883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=12883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}