South Africa’s Sasol Petroleum International (SPI) is due to start producing and selling oil extracted in Mozambique’s Inhambane province in 2014, the company’s managing director said recently.
Ebbie Haan told financial news agency Reuters that the company, which already operates a natural gas processing plant in Pande and Temane and a gas pipeline, in March concluded an evaluation programme in which 236,000 barrels were extracted in the Inhassoro region, which proved the feasibility of the project.
“It is one more small step, but it is a sign that perhaps there are more [oil wells],” said Haan adding that, at this stage, with the possible drilling of two wells, production would total 2,000 barrels per day.
Haan, who referred to the onshore oil well as “small, but lucrative,” also said that the company planned to invest around US$2.4 billion in Mozambique by 2018, on all the projects it has planned, including boosting the capacity of the 800-kilometre pipeline linking Inhambane to South Africa.
Despite announcements of oil wells having been discovered in Mozambique this is the first time ever that the viability of commercial exploration has been confirmed. (macauhub)