UK’s Sound Energy receives gas sales offer from Morocco’s ONEE

British upstream gas company Sound Energy PLC announced, Wednesday, that its shares rose after it told investors that it received an offer from the Moroccan government, Proactive Investors said on May 1st.

Sound Energy, which has three assets in the Kingdom (Tendrara, Anoual, and Sidi Mokhtar), said that a non-binding offer submitted by Morocco's Office National de L’Electricité et de L’Eau Potable (ONEE) aims to purchase its Tendrara’s gas.

The offer «anticipates gas pricing from 2022 based on a structure that includes a variable element linked to the Brent oil price along with a fixed element to fully cover transportation costs (capped at US$12.2mln per year)», the same source explained.

Sound Energy stated, based on the current prices of Brent, that it «would receive between US$8.50 and US$9 per million British thermal units», adding that the «pipeline fee to be US$1 per mln BTU (British Thermal Unit)».

The same source indicated that prior to 2022 gas prices would be «brought in line with what the Moroccan state sells gas to ONEE».

The firm based in the UK said that negotiations are underway to conclude a binding gas sales agreement with the state-owned company.