South African group Sasol Thursday began drilling its first test well in Inhambane, Mozambique, under a production sharing agreement (PSA) signed with the Mozambican authorities in January, the group said in a statement.
During this initial phase, 13 production wells will be drilled and oil and liquefied petroleum gas production facilities will be set up close to the gas processing plant in Temane, in Inhambane province, with a fifth unit installed to process the additional gas .
“The spud of the first well in the PSA license area reaffirms Mozambique as the heartland of Sasol’s oil and gas strategy in sub-Saharan Africa and provides a platform from which to drive socio-economic growth,” according to John Sichinga, senior vice president of Sasol Exploration and Production International.
Mozambique’s cabinet last January approved the Development Plan of the Production Sharing Agreement, and shortly after Sasol commissioned France’s Société de Maintenance Pétrolière drilling rig, which arrived at the port of Maputo in March.
The first phase of development of the PSA is expected to cost about US$1.4 billion. (macauhub/MZ)