Casablanca – Moroccan mining and industrial group Managem has strengthened its position in the country’s energy sector after completing the acquisition of the remaining interests held by British company Sound Energy in the Tendrara natural gas project, bringing an end to the British firm’s involvement in Morocco’s upstream gas industry and giving Managem a controlling stake in one of the Kingdom’s largest onshore gas developments.

The transaction follows regulatory approval from Morocco’s Competition Council and completes a multi-stage acquisition process that began in late 2024, when Managem agreed to purchase most of Sound Energy’s Moroccan gas assets. With the latest acquisition finalized, Managem and its subsidiaries now hold a 75% operating interest in the Tendrara concession, while the National Office of Hydrocarbons and Mines (ONHYM) retains the remaining 25%.

The latest deal was completed through the acquisition of Sound Energy Meridja Limited (SEML), the subsidiary that owned Sound Energy’s remaining 20% stake in the Tendrara concession. The transaction also includes the transfer of the company’s remaining interests in the Anoual exploration license and the Greater Tendrara exploration license, marking Sound Energy’s complete withdrawal from Morocco’s natural gas exploration and production sector.

Sound Energy had announced in May 2026 that it would sell its remaining Tendrara interest to Managem in a transaction valued at approximately $57 million. The company said at the time that the sale formed part of a broader strategy aimed at redirecting capital toward renewable energy and energy transition investments while improving shareholder returns.

Following completion of the sale, Sound Energy expects to retain approximately $11 million in cash after settling its financial obligations. The company has stated that this financial position will enable it to pursue acquisitions in renewable energy and energy transition businesses while continuing selected operations in Morocco outside the gas sector.

Although it has exited natural gas production, Sound Energy plans to maintain its presence in Morocco through its Tayra solar energy platform as well as hydrogen and helium exploration activities under the HyMaroc project.

The completion of the transaction also concludes a restructuring process that began in December 2024. Under the original agreement, Managem acquired a majority interest in Sound Energy’s Moroccan gas portfolio, including a 55% stake in the Tendrara concession and significant interests in the Greater Tendrara and Anoual exploration licenses. Sound Energy initially retained minority stakes in those assets before deciding to dispose of its remaining holdings this year.

For Managem, the acquisition represents another step in expanding beyond its traditional mining activities into strategic energy projects. The company has steadily diversified its portfolio in recent years, increasing its presence in sectors linked to Morocco’s industrial development and energy security while continuing to invest in metals and minerals used in the global energy transition.

The Tendrara project is considered one of Morocco’s most important domestic natural gas developments. Located in the eastern part of the country, the concession covers approximately 23,000 square kilometers and contains estimated natural gas resources of around 10.67 billion cubic meters.

The project is expected to contribute to Morocco’s efforts to increase domestic energy production at a time when the country continues to rely heavily on imported fossil fuels. Expanding local gas production has become one of the government’s priorities as Morocco seeks to diversify its energy supply, support industrial growth, and strengthen long-term energy security.

Development of the Tendrara field is being carried out in two phases.

The first phase includes construction of a small liquefied natural gas processing facility designed to produce approximately 54 billion cubic feet of natural gas. This phase is intended to supply gas to domestic industrial customers while creating the infrastructure needed for future production expansion.

The second phase involves the construction of a 120-kilometer pipeline that will connect the field to Morocco’s national gas network. Once completed, the pipeline is expected to enable production of an additional 128 billion cubic feet of natural gas, significantly increasing the project’s long-term output.

Construction and development activities are currently being advanced by Mana Energy Ltd, a wholly owned subsidiary of Managem, which serves as the project operator.

The development timetable has evolved since construction began. Initial plans called for production to start in October 2025, but project partners later revised the schedule. Current expectations indicate that first gas production will begin during the third quarter of 2026.

Like many energy developments worldwide, the Tendrara project has also been affected by higher construction and operating costs resulting from inflation across the global energy industry. Project partners continue to evaluate the final investment decision for the second phase while work on the initial development progresses.

The transfer of ownership also reflects changing priorities within the international energy sector. Sound Energy has shifted its investment strategy toward businesses focused on renewable energy and lower-carbon technologies, joining a growing number of energy companies that are reallocating capital away from smaller upstream oil and gas operations.

For Morocco, however, natural gas continues to play an important role in the country’s energy transition. The government views domestic gas production as a complementary source of energy that can support electricity generation and industrial activity while renewable energy capacity continues to expand.

Managem’s larger role in the Tendrara project also reflects the growing participation of Moroccan companies in strategic energy developments. By assuming operational control of the country’s largest onshore gas project, the company is expanding its activities beyond mining into a sector considered increasingly important for Morocco’s long-term economic development.

As development work continues, the Tendrara project is expected to become one of Morocco’s principal domestic sources of natural gas, supporting efforts to diversify energy supplies, reduce dependence on imported fuel, and strengthen the country’s industrial and energy infrastructure over the coming years.