South Africa’s Sasol approves more gas exploration in Mozambique

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Sasol, an integrated energy and chemical company based in South Africa, has been awarded two new licences for gas exploration in Mozambique.

After one of the largest gas finds in the world’s recent history situated offshore in the Rovuma basin, near the Tanzanian border, in Mozambique, the country has become a hotbed of investor activity. Deloitte revealed that the country has attracted 23 foreign direct investment projects since 2010 and $12.5 billion in capital.

The energy firm has been given the permission to explore an onshore area of more than 3,000km² in southern Mozambique. It is also part of a successful bid to explore an area of 5,145km² further north in the offshore Angoche Basin. Sasol holds an interest of 70 percent in the first block and 25.5 percent in the second.

On the sidelines of the Africa Oil Week conference, Jon Harris, Sasol’s executive vice-president for upstream said the company was particularly excited about the block in southern Mozambique because it was adjacent to Sasol’s gas-producing Pande and Temane fields.

Harris said “we know there is a hydrocarbon system in the vicinity of this block so we know there is a very good chance we might find some more gas”.

He also noted that Sasol’s production licence for its oil producing asset in Gabon, Etame, in which it has a 27.75 percent interest, was due to expire in 2022 but has now been extended for another 20 years.

In Mozambique, about 20 percent of the gas produced is used for power generation in the country, while the balance mainly feeds into an 860km pipeline to the company’s Secunda plant in South Africa.

 

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