South African giant Sasol gets approval to start Oil and gas field Development in Mozambique

South African giant Sasol announced it has obtained approval from the Mozambique government to commence development of Oil and gas fields, the company has indicated in a latest release.

Mozambique according to the earlier findings by the Oil and gas journal in 2014, posted natural gas reserves o 100 Trillion cubic feet (Tcf), up from 4.5 Tcf previously recorded in 2013.

The first phase of the Production Sharing Agreement (PSA) licence area development according to a statement from Sasol proposes an integrated oil, LPG and gas project adjacent to Sasol’s existing Petroleum Production Agreement (PPA) area.

“The PPA area is where natural gas from the Pande and Temane fields is currently produced and processed in a central processing facility before being transported via an 865-kilometre pipeline to gas markets in Mozambique and South Africa,” notes Sasol.

Speaking in reference to the development, Sasol Chief Executive David Constable said the approval posts a significant milestone in the South African region gas industry

“The Mozambican gas industry is playing an increasingly important role in the regional energy landscape, and this project represents a major milestone in further developing natural resources, which will significantly benefit Southern Africa,” said David Constable, President and Chief Executive Officer, Sasol Limited.

“The PSA development is aligned with our commitment to both Mozambique and South Africa, and will enable us to drive our broader 2050 strategy, which reaffirms Sasol’s longer term role in Southern Africa,” concluded Constable.

In 2012, Mozambique produced 154 billion cubic feet (Bcf) of natural gas mainly from two onshore gas fields, Pande and Temane.

The majority of natural gas produced in Mozambique was exported (127 Bcf) to South Africa via the 535-mile Sasol Petroleum International Gas Pipeline, and the remainder was domestically consumed (27 Bcf).

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