Sa­sol spends large for gas

Firm will spend bil­lions to drill 13 on­shore ex­plo­ration wells to ex­pand nat­u­ral gas op­er­a­tions in Mozambique

CityPress - - Business -

the ex­tra pro­duc­tion could be sold to Sa­sol’s cus­tomers in South Africa and Mozambique. How­ever, in the mean­time, Sa­sol is drilling and prov­ing that there is gas in the ground be­fore pro­ceed­ing fur­ther with the pro­duc­tion share agree­ment. Part of the gas sup­ply is sold to cus­tomers in Mozambique, in­clud­ing two power plants in Res­sano Gar­cia that pro­duce a to­tal ca­pac­ity of 295MW. Sa­sol has built a 175MW gas-fired power plant to­gether with Mozam­bi­can power util­ity Elec­t­ri­ci­dade de Moçam­bique, while Gi­gawatt Mozambique has a 120MW gas-fired power plant. They are both based at Res­sano Gar­cia. The ini­tial dis­pen­sa­tion that started nat­u­ral gas pro­duc­tion was the pe­tro­leum pro­duc­tion agree­ment, which saw Sa­sol, to­gether with Com­pan­hia Moçam­bi­cana de Hidro­car­bone­tos, the gov­ern­ment’s ve­hi­cle for par­tic­i­pa­tion in the project, and the In­ter­na­tional Fi­nance Cor­po­ra­tion (5%) de­velop the Pande and Te­mane gas fields. Sa­sol is the only com­pany that is pro­duc­ing oil and gas in Mozambique. How­ever, com­pa­nies, in­clud­ing Exxon Mo­bil, To­tal, Eni and Anadarko Pe­tro­leum, have ex­plo­ration prop­er­ties in Mozambique, but aren’t pro­duc­ing any gas or oil. Right now, Mozambique is Africa’s fifth-largest nat­u­ral gas pro­ducer be­hind Al­ge­ria, Egypt, Nigeria, Libya and Equa­to­rial Guinea.

PPA

– Pe­tro­leum pro­duc­tion agree­ment - Pro­duc­tion share agree­ment – Cen­tral pro­cess­ing fa­cil­ity

PSA CPF CTRG-

Cen­tral Ter­mica Res­sano Gar­cia 175MW gas-fired power plant

is an ex­plo­ration area of 3 012 square kilo­me­tres, ad­ja­cent to the Pande and Te­mane fields

is an ex­plo­ration area of 5 145 square kilo­me­tres

PT5-C Area A

PHOTO: JUSTIN BROWN

THE NEXT STEP Sa­sol is the only com­pany pro­duc­ing oil and gas in Mozambique

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