Sound Energy to offload $57 million stake in Morocco gas field

Sound Energy Plc, a London-based transition energy company, is set to exit Morocco’s flagship onshore gas development after agreeing to sell its remaining 20% stake in the Tendrara Exploitation Concession to Managem SA in a deal valued at $57 million.

The transaction marks a major strategic pivot for the  company as it seeks to reduce debt exposure and redirect capital toward broader transition-energy opportunities.

Tendrara ownership shifts to Managem

Under the binding Sale and Purchase Agreement, Sound Energy will divest its interest through the sale of the entire share capital of Sound Energy Meridja Limited, the entity holding the Tendrara stake. 

Following completion, Managem and its affiliates will control a 75% operated interest in the concession, while Office National des Hydrocarbures et des Mines, widely known as ONHYM, will retain the remaining 25%.

The transaction remains subject to shareholder approval, with the company expected to convene a General Meeting in the coming weeks.

Debt reduction and strategic reset

Sound Energy plans to deploy proceeds from the transaction toward eliminating outstanding debt obligations, including the repurchase of its €28.8 million ($33.4 million) senior secured notes due in 2027.

Chief Executive Officer Majik Shafiq described the deal as a transformational milestone that unlocks shareholder value while reducing the company’s exposure to the funding requirements tied to Tendrara’s larger Phase II expansion.

The move also enables the company to refocus management attention on new upstream hydrocarbon opportunities and renewable-energy investments.

Refocusing on transition energy growth

Sound Energy is positioning itself as a key player in Morocco’s energy transition, with operations focused on onshore gas exploration, production and renewable power development. 

Listed on London’s AIM market, the company is advancing the Tendrara gas project, regarded as Morocco’s first major onshore gas discovery, as the North African nation accelerates efforts to reduce dependence on imported coal and hydrocarbons.

Managem SA, listed on the Casablanca Stock Exchange, has expanded from base metals including cobalt, copper and zinc into high-value precious metals such as gold and silver. 

The African mining group operates across seven countries with 13 mining sites and 20 industrial units, employing about 5,000 workers from 28 nationalities, reinforcing its position as one of Africa’s diversified mining leaders.