LONDON (Alliance News) - Mediterranean-focused upstream oil and gas company Sound Energy PLC on Tuesday said it has entered into a field management agreement with an affiliate of Schlumberger Oilfield Holdings Ltd on the Tendrara licence in Morocco.
Under the agreement, the unit of the US oilfield services giant will provide integrated technical services, equipment and personnel to Sound, which is the operator of the licence.
Schlumberger also will fund a significant portion of the capital expenditure on the first three Tendrara appraisal wells and will be granted an upside to its fees on the project based on the production performance of the wells.
"This transaction significantly reduces our financial exposure to the drilling programme while maximising the potential upside relating to drilling and development success. The involvement of Schlumberger in this project also helps de-risk the asset and further supports the quality of our technical work," said Sound Chief Executive James Parsons.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Sound Energy (SOU)