Maputo, Mozambique, 22 Sept – The Mozambican government Tuesday in Maputo signed an agreement for oil and gas surveying in an area of 8,370 square kilometres of Inhambane province, with South African company Sasol Petroleum International (SPI).
The area known as “A” is located on the coast of the southern province of Inhambane and is next to the natural gas fields of Pande and Temane, which are currently explored by the Sasol/Empresa Nacional de Hidrocarbonetos (ENH) consortium, as well as other natural gas discoveries, some of which are recent, for example Njika-1 and Njika-2, drilled in blocks 16 and 19 in the sea.
SPI, a subsidiary for the oil and gas sector of South African petrochemical group Sasol, has a 90 percent stake in the area and is the operators, with ENH holding the remaining 10 percent in representation of the Mozambican state.
The signing of the contract took place not long after the Ministry of Natural Resources announced it had discovered new natural gas reserves, as well as the first discovery of the presence of oil in Mozambique and East Africa.
Companies in the Sasol group have been carrying out oil operations in Mozambique since the mid 1990s, and are present in the Pande and Temane natural gas projects as well as currently carrying out surveying activities as part of four contracts that cover areas on land and at sea in the provinces of Inhambane and Sofala.
There are several occurrences of natural gas in various places across the country and everything points to Mozambique having a high potential for this type of hydrocarbon.
Figures provided Tuesday showed that Sasol Petroleum International plans to invest US$25 million over the three phases of surveying, the first and the third of which will each take three years and cost US$10 million each, whilst the second phase will take two years and cost US$5 million. (macauhub)