Gas from Mozambique’s Pande and Temane areas, generates revenues of US$230 million

17 August 2009

Maputo, Mozambique, 17 Aug – The natural gas project of Pande and Temane, in Mozambique’s Inhambane province, provided sales of US$230 million in 2008 for the concession-holder, South African group Sasol, the Mozambican minister for Natural Resources said in Vilanculos.

According to the minister, who was speaking during the 24th Coordinating Council of the Ministry for Natural Resources, held in Vilanculos, Inhambane province, the sales of natural gas and condensate totalled US$177 million and US$55 million, respectively.

Minister Esperança Bias said that the volume of geological reserves of the project and the requests from the market both for national consumption and export had been rising, and thus the government had approved a development plan to increase the capacity of the facilities, which would make it possible by 2011 for production volume to rise by around 50 percent.

“It is with satisfaction that we have found that, as well as the significant contribution of natural gas exploration to tax revenues for the State, which by the end of 2008 totalled US$42 million, the population of this area has also benefited from the implementation of social projects, funded by Sasol and by Companhia de Hidrocarbonetos,” said Bias.

According to figures in the 2004/2009 activities report, presented at the meeting, natural gas production at Temane and Pande totalled over 120 million gigajoules in 2008, mainly for export, as compared to just over 60 million gigajoules produced in 2004.

This growth trend, according to Mozambican news agency AIM, was also seen in condensates, production of which totalled just over 300,000 bbl (barrels), in 2004, and over 800,000 bbl in 2007.

The minister also said that there had been a significant increase in investment and demand for new hydrocarbon research areas over the last few years, due to a steep rise in the price of oil.

It is in this context that, by the end of the current five-year period, over US$800 million will be invested, with various seismic surveying works carried out in the Rovuma basin, two test wells on land in Sofala province and the same number offshore in Inhambane province, the latter having resulted in the discovery of natural gas.

According to the Minister for Natural Resources, of the 14 oil research and production contracts, one offshore and one on-shore in Zambeze province have been concluded as the companies involved decided not to move ahead with further research (macauhub)