A British energy firm is leaving Morocco after selling its final stake in a major gas project. Sound Energy has agreed to sell its remaining 20% share in the Tendrara gas field to Managem. The deal means the company is now heading for a full exit from the country.
The agreement is valued at $57m, though the structure is unusual. Managem will pay just $1 for the shares themselves. The rest of the money will go towards repaying loans that Sound Energy had given to its own subsidiary over several years.
This follows an earlier sale in 2024, when Sound Energy sold 55% of the project to Managem.
Why Sound Energy is selling
The sale will help it deal with its debts. It plans to repay €28.8m in bonds that were due in 2027. These bonds carry a 5% interest rate.
If the deal goes through by 31 July 2026, Sound Energy expects to clear all its debt and be left with about $11m in cash.
Investors reacted quickly. The company’s share price fell sharply in London after the news, showing concern about its financial position and its exit from Morocco.
As part of the deal, Sound Energy will also give up its 27.5% stake in the Anoual exploration licence. It will also drop its remaining rights in the Greater Tendrara area.
Delays at the gas project
The Tendrara project has not gone smoothly. Gas production was first expected to start in October 2025. It is now delayed until the third quarter of 2026.
Rising costs have played a role. Inflation has pushed up both construction and running expenses.
The project covers about 133.5 square kilometres in eastern Morocco. It holds an estimated 10.67 billion cubic metres of gas.
It is being developed in two stages. The first phase is a small liquefied natural gas plant aimed at local industries. The second phase involves building a pipeline, but a final decision on that part has not yet been made.
For Morocco, the deal shifts control of the project closer to home. Managem is expected to hold 75% of Tendrara once the deal is completed. The remaining 25% will stay with the state hydrocarbons agency.
The project could become an important local energy source. Planned production could cover around half of Morocco’s current gas demand once fully developed.
