Qatar27 May 2019 08:15
It might be worth thinking outside the Sound ‘bubble’ for a while.
The principals in OGIF have an over-riding objective of retaining control of their share in Sound’s licences in Morocco for three or four reasons.
First, they’re aligned with the royal palace, for obvious reasons.
Second, they have been involved in Tendrara since the Lone Star days and in Sidi Moktar via Maghreb Petroleum for more than a decade.
Third, they finally have line of sight to gas production from Tendrara, the revenue that will generate and substitute Moroccan gas for Algerian gas.
Fourth, they want to benefit from a sale, just as PI’s do.
In these circumstances, OGIF may prefer a ‘political’ solution to a quick sale rather than months involved in a trade sale with an uncertain/unknown outcome.
To my mind this brings Qatar into play.
Qatar supports Morocco’s claims on Western Sahara and has moved into the space previously occupied by Saudi Arabia in Rabat. Morocco supports Qatar in its squabble with Saudi Arabia. Qatar Petroleum, previously known as Al Thani Petroleum, participates in international ventures. Qatar Petroleum has recently farmed in to ENI’s Tarfaya contract area offshore Morocco.
With Schlumberger’s interest in the TE-5 concession, they would no doubt be pleased to handle the field development project as envisaged in the original Field Management Agreement with Sound, and recover the money spent on Sound’s seismic and exploration drilling.
To what extent Sound is master of its own destiny in Morocco is anyone’s guess, but I hope JP is smart enough to heed any ‘guidance’ from his strategic partners.
Furthermore, Rothschilds has a long history of working with Morocco’s leaders and will realise a successful transaction depends on their support and approval. In recent years the investment vehicle of Morocco’s royal family hired Goldman Sachs and Rothschild to advise it on the sale of a minority stake in Attijariwafa Bank.
Sign In
Follow the stocks
