Sasol reports successful results in Mozambique after light oil and natural gas wells tests

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Sasol reports successful results in Mozambique after light oil and natural gas wells tests

4:21 CAT | 24 Aug 2017

Sasol Mozambique / Courtesy Image (File photo)

Sasol says it has achieved satisfactory progress towards future production targets.

Four light oil wells and two gas wells were successfully drilled and tested in Mozambique by the South African company, which operates in the Pande and Temane fields in Inhambane province.

According to a company statement, the achievements form part of a plan that foresees a total of 13 wells to be drilled in its concessions in Inhambane, for an investment estimated at about US$384 million.

The company cites CEOs Bongani Nqwababa and Stephen Cornell as saying at a press conference in Johannesburg, South Africa, that gas reserves in Mozambique have fulfilled expectations.

The amount of light oil found is at the minimum to medium level of projections, and the design of the surface facilities and the development plan of the oil field are being adjusted to actual volumes.

Nqwababa and Cornell say that Sasol has made significant progress in Tranche 1 of the Production Sharing Agreement (PSA) development plan approved by the Council of Ministers on 26 January 2016. The PSA license, to be developed in phases, includes, initially, the integrated project for gas, light oil and liquid petroleum gas in areas adjacent to those in the Oil Production Agreement.

“The development of the Production Sharing Agreement is in line with our commitment to Mozambique and South Africa, enabling us to implement our global strategy by 2050, and reaffirming Sasol’s long-term presence in Southern Africa,” they said, reaffirming the company’s commitment to Mozambique’s growth targets.

Although results in Mozambique were considered satisfactory, the company was affected by continued volatility in the macroeconomic environment, particularly the strong Rand and low oil price.

Source: O País