Sasol receives Mozambique nod
Sasol has been awarded two new licences for gas exploration in Mozambique. The country has become a hotbed of investor activity after one of the largest gas finds in recent history offshore in the Rovuma basin, near Tanzania.
Fuel and petrochemicals company Sasol has been awarded two new licences for gas exploration in Mozambique.
The country has become a hotbed of investor activity after one of the largest gas finds in recent history offshore in the Rovuma basin, near Tanzania.
According to Deloitte, the country has attracted 23 foreign direct investment projects since 2010 and $12.5bn in capital.
Sasol now has the go-ahead to explore an onshore area of more than 3,000km² in southern Mozambique, and is also part of a successful bid to explore 5,145km² further north in the offshore Angoche Basin.
Sasol holds an interest of 70% in the first block and 25.5% in the second. Executive vicepresident for upstream, Jon Harris, said on the sidelines of the Africa Oil Week conference Sasol is excited about the southern Mozambican block as it adjoins its gas-producing Pande and Temane fields. “We know there is a hydrocarbon system in the vicinity of this block so we know there is a very good chance we might find some more gas.”
The production licence for Pande and Temane, due to expire in 2022, has been extended for 20 years, Harris said.
About 20% of the gas Sasol produces in Mozambique is used for power generation there. The balance mainly feeds into an 860km pipeline to its Secunda plant in SA, to be used in its production processes. Sasol is also looking at the feasibility of a pipeline to move gas from Rovuma (which would have to be purchased) to SA. This would be costly and a sufficient load would be needed to warrant it, Harris said.
“But we would love to find more gas ... and not have to try and build another pipeline.”