SDXit

SDX signs sale agreement for local assets: London-based, Egypt-focused SDX Energy has inked a heads of terms — a non-binding letter of intent — to sell its entire Egypt portfolio to an unnamed “large multinational operator,” the company said in a statement (pdf) last week. The company expects to close the transaction by the end of the year.

Nothing’s set in stone: “The heads of terms are non-binding and, therefore, there can be no certainty that the disposal will complete,” the statement reads. It’s considered unusual in the industry for a company to disclose a non-binding agreement to transact, a veteran industry player tells us.

Remember: The company in June said that it had received multiple offers for its Egyptian assets and that its board was evaluating them. SDX — which currently operates only in Egypt and Morocco — has a 55% working interest in two gas fields and a 100% working interest in a third field at the South Disouq concession in the Nile Delta. It also holds a 50% working interest in two blocks in the West Gharib concession in the Eastern Desert, according to its website.

The company wants to focus on operations in Morocco: “The disposal will position the

company for upcoming diversification into Morocco’s energy transition sector,” the company said. “SDX, re-energized with new management, will focus on monetizing exciting opportunities around its Moroccan assets and related energy transition sector-plays,” Managing Director Daniel Gould said.

There are quite a few requirements to fulfill: SDX still has to negotiate the final transaction and secure the approval of its shareholders and the Egyptian government.