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Home Africa

Sasol triggers fuels project in Mozambique

Staff by Staff
February 5, 2020
in Africa, Development, Economy, Energy, Fuel, Gas, Government, Investing, Mozambique, Natural Resources, Oil
Reading Time: 2 mins read
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Multinational Sasol is investing in the development of an integrated light oil and gas production and sharing project in its Pande and Temane fields in Inhassoro district, Inhambane province.

According to information obtained by Notícias, the project was approved by the Mozambican government in 2016. Sasol has invested about US$670 million in the exploration license, with about US$400 million spent since the approval of the Field Development Plan (FDP) in January 2016.

In its first phase, the project foresees the drilling of 12 wells in the Temane/Inhassoro fields G6, G8 and G10, seven for light oil with a capacity of 15,000 barrels per day, and five for gas with a capacity of 20,000 standard cubic feet per day.

Our report indicates that seven light oil wells in the Inhassoro G6 and G10 areas were successful, and of the five gas wells in the Temane G8 area, two were successful while three were postponed pending a request from the Temane Thermal Power Station (CTT).

In the Second Phase, all the gas wells planned in Pande areas G10, G11 and G11A were completed and tested successfully.

A Sasol document seen by Notícias reveals that the Fuel Production Sharing Agreement is expected to address constraints in the national cooking gas (LPG) market, as current supply does not satisfy the estimated national demand of 46,000 tons per year.

The project is to build a unit capable of producing up to 30,000 tons of cooking gas per year, the multinational judging that return on this investment is guaranteed given the strong potential for growth resulting from increases in the cost of electricity.

Source: Notícias via Club of Mozambique

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Tags: CTTFDPFeaturefield development planFuel Production Sharing AgreementInhambaneInhassoroLPGMozambiqueOil and gasPandeSasolTemaneTemane Thermal Power Stationмозамбикموزمبيقモザンビーク莫桑比克
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