Moroccan authorities have extended the permit for the onshore Sidi Moktar acreage by 24 months, as a result of COVID-19 issues.
The beneficiary of the consideration is Sound Energy.
The company says the extension is a result of regular dialogue with the regulatory authorities, L’Office National des Hydrocarbures et des Mines ONHYM, which has now added 24 months to the initial period of the Petroleum Agreement in order for the Company to complete the committed work programme.
London listed Sound Energy was awarded the petroleum agreement related to the 4,712 square kilometre Sidi Moktar permit on 12 February 2018, with an initial period of 2 years and 6 months. The Company holds an operated 75% position in the permits with the remaining 25% held by ONHYM.
The acreage is in the Essaouira basin, central Morocco
Subject to the issuance of the Joint Arreté signed by the Minister in charge of Energy and Minister in charge of Finance, the length of the initial period will now be 4 years and 6 months, commencing 9 April 2018. The work programme commitments for the initial period remain unchanged. The lengths of the first and second complimentary periods, which would commence upon the successful completion of the recently extended initial period, remain unchanged at 3 years, and 2 years and 6 months, respectively.