Mozambique Oil & Gas: Sasol goes for more gas

Sasol may now explore an area of over 3,000km² in southern Mozambique, and is also part of a successful bid to explore an area of 5,145km² further north in the Angoche Basin.

Fuel and petrochemicals company Sasol has been awarded two new licences for gas exploration in Mozambique.

Mozambique has become a hotbed of investor activity after one of the largest gas finds in the world’s recent history located offshore in the Rovuma basin, near the Tanzanian border.

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 an area of 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.

Sasol’s executive vice-president for upstream, Jon Harris, said on the sidelines of the Africa Oil Week conference, that the company was particularly excited about the block in southern Mozambique because it was adjacent to Sasol’s 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, which was due to expire in 2022, has now also 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 the company’s Secunda plant in SA, to be used in its production processes.

Sasol is also looking at the feasibility of 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 in southern Mozambique and not have to try and build another pipeline.” Source: Business Day Live