Sasol discovers more gas in Inhambane, says Mozambique National Petroleum Institute

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Sasol discovers more gas in Inhambane, says Mozambique National Petroleum Institute

11:24 CAT | 16 Sep 2016

Sasol (File photo)

Multinational company Sasol yesterday announced the discovery of more oil reserves in the Mozambique sedimentary basin in Inhambane province.

The National Petroleum Institute (INP) statement announces that the discoveries are the result of drilling in the area covered by Pande-Temane Production Sharing Agreement Area (PSA) between the Mozambican government and Sasol Exploration and Production International.

The source does not specify the size of the reserves, but reveals that the findings were confirmed while drilling a second exploration well, adding that the assessment of the data is ongoing.

“The new findings confirm the presence of hydrocarbon accumulations in the first hole, which started activity on May 25 this year,” the INP says.

The institution adds that the drilling campaign continues as planned, and that the preparation of the platform for drilling the next hole in Inhassoro is underway.

Collaboration in Mozambique with South African petrochemical group Sasol was approved earlier this year by the government. A Production Sharing Agreement (PSA) is to be implemented in phases, the first being an operation that includes oil, liquefied petroleum gas and natural gas adjacent to the area covered by the Petroleum Production Agreement (APP) signed some years ago.

Sasol’s Chief Executive Officer David Constable said at the time that the gas industry in Mozambique is playing an increasingly important role in the regional energy context, particularly in the development of natural resources that will benefit all of Southern Africa.

In Mozambique, and in Pande and Temane particularly, Sasol is exploring natural gas reserves. The gas is then transported through the 865-kilometre pipeline to the south of Mozambique and neighbouring South Africa.

Source: Noticias