November 18, 2017

Sasol commences work on its LPG and gas project in Mozambique

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In accordance with the stipulated terms of its production sharing agreement (PSA) licence for the integrated oil, liquefied petroleum and gas (LPG) and gas project, Sasol has started the drilling of its first well in Inhambane Province, Mozambique.

The phased development plan envisages the development of further hydrocarbon resources that will help to drive the growth of both Mozambique and Southern Africa.

During the first phase, which will cost an estimated $1.4bn, thirteen production wells will be drilled (including a water disposal well), while oil and LPG production facilities will be installed.

“The spud of the first well in the PSA licence area reaffirms Mozambique as the heartland of Sasol’s oil and gas strategy in sub-Saharan Africa and provides a platform from which to drive socio-economic growth,” said John Sichinga, senior vice president of Sasol Exploration and Production International.

Mozambique’s Council of Ministers approved the PSA FDP in January this year. Sasol then commissioned a drilling rig from French-based drilling contractor, Société de Maintenance Pétrolière.

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