UK-based energy company SDX Energy has unveiled a new corporate strategy aiming to transition its operations from pure oil & gas into hybrid energy in Morocco.
“SDX’s new corporate strategy is to evolve the Company into a vertically-integrated hybrid gas- and renewable-energy producer in Morocco and beyond,” the company said in a statement on Monday.
According to the statement, SDX looks to leverage its 12-year presence in Morocco, and its gas transportation infrastructure, to transition to the production of hybrid and green energy.
The company plans to diversify energy production sources by expanding existing gas transportation infrastructure to connect to the Algeria-Spain gas pipeline (GME).
Once SDX gains access to the GME, the company will be able to supply gas from Europe to industrial off-takers in Morocco’s Kenitra region.
The company equally plans to generate and cross-sell renewable energy together with its existing gas offtake contracts. In addition, the UK energy company would seek to expand into more power-generation initiatives.
The plan would be either executed in parallel or independently of each other – taking advantage of the high demand and favorable pricing environment in Morocco for additional gas and green electricity, the company explained in its statement.
SDX also plans to partner with various stakeholders on a number of projects and expects to both expand existing and create new joint ventures.
“Over the last six months, SDX’s senior management has been working intensively to reposition the Company, setting the foundation to execute the Company’s new strategy,” said Daniel Gould, the company’s Chief Executive Officer.
According to Gould, the strategy will help the company deliver “long-term, sustainable value-creation – unlocking new business directions and project opportunities.”
Having divested its assets in Egypt, the Company is now fully committed to continuing its upstream activities in Morocco in the immediate future and beyond, with additional drilling planned in 2024. The plan is designed for the short- and medium-term horizon, covering up to four years, with milestones expected to be reached in the near future, the statement adds.
Source: Morocco World News