SDX Energy, a MENA-focused company, entered into an agreement with an undisclosed company to divest all of its Egyptian assets turning its sights on its expansion in Morocco.
According to a statement from the company, the move aims to “optimize its asset portfolio and concentrate on expanding its presence in Morocco’s energy transition sector.”
The transaction is expected to be finalized by the end of the fourth quarter, SDX Energy says in the statement.
While the buyer’s identity remains confidential, they are described as a “large multinational operator” with established interests in Egypt. The exact transaction price has not been disclosed.
Completion of the divestment is contingent upon several conditions, including the negotiation of final transaction documentation and approvals from the Egyptian government.
SDX Energy equally needs the consent of its shareholders. A general meeting will be convened upon signing a sale and purchase agreement.
SDX Managing Director Daniel Gould expressed his optimism about the company’s future direction.
“The planned sale of SDX’s Egyptian assets will be a significant milestone on the Company’s transition road map that we will soon be presenting to our shareholders,” he said.
“SDX, re-energized with new management, will focus on monetizing exciting opportunities around its Moroccan assets and related energy transition sector plays in order to reward and deliver capital growth to our shareholders in the near term.” According to SDX Energy’s website, the company’s operations in Egypt encompass the South Disouq and West Gharib regions.
SDX holds a 55% interest in the South Disouq and Ibn Yunus fields, while IPR Energy possesses the remaining 45% interest.
In the Eastern Desert, SDX has a 50% interest in the Meseda and Rabul fields, within the West Gharib concession.
SDX Energy recently secured financing for the expansion of its gas production in Morocco under a loan agreement with Aleph Finance, amounting to up to $3.25 million.
An initial sum of $2 million has already been drawn and will be utilized for various purposes, including reducing outstanding debt to the European Bank for Reconstruction and Development and expediting the Moroccan drilling campaign.
