Morocco's mining company, Managem, has bought a subsidiary of UK gas company Sound Energy Morocco East, the media reported.
The total value of the transaction is reportedly $45.2 million. The sale is crucial for advancing production in the Tendrara gas field located in eastern Morocco, according to Sound Energy, as per the media.
Production at the field is anticipated to begin at 100 million cubic meters per year starting next year, Managem said, according to the outlet.
"The group is actively looking for other gas assets in Africa," Managem CEO Imad Toumi was quoted in the statement as saying.
The company reportedly intends to enhance production to 280 million cubic meters by connecting the field to an existing gas pipeline that links Morocco to Spain.
In 2016, the Nigeria-Morocco gas pipeline project was announced by Morocco's King Mohammed VI and former Nigerian President Muhammadu Buhari. Thirteen West African countries and Europe are expected to benefit from the pipeline.