Growing our upstream base in Mozambique

Mozambique, the heartland of our upstream operations, has been and continues to be a strategic country for Sasol.
We have made ongoing investments to enhance reservoir deliverability in the Pande and Temane fields, as well as production from the CPF. Current projects include:

  • A low pressure compression project at the CPF to compensate for the depletion of reservoir pressure in the fields due to gas production. Construction commenced during the first half of the 2014 financial year, with beneficial operation scheduled for the end of April 2015.
  • A R2 billion loop line project (128km of pipeline that runs in parallel to the main pipeline) to further increase pipeline capacity in support of increased demand to monetise gas in this region. The pipeline is due for completion in the first quarter of 2015.

Our growth plans in the region are strongly aligned towards finding additional gas resources that will support further expansion of the CPF. We envisage significant growth in Mozambique in our acreage area in onshore Inhambane province. We conducted extended well tests in the Production Sharing Agreement (PSA) licence close to the CPF. Both these wells flowed light, sweet oil at rates of up to 1 200 bpd (190 sm3/d) – the first oil discovery in Mozambique.

Subsequently, in the first half of calendar 2013 we declared commerciality on two oil and two gas reservoirs in the PSA licence. We now have until February 2015 to submit a full field development plan (FDP). We anticipate using our existing infrastructure as the foundation for phased development of these fields, including further expansion of the CPF.

In 2010, Sasol signed an agreement to explore an onshore gas concession known as Area A. The concession covers some 8 370 square kilometres and is adjacent to the Pande and Temane gas fields. Sasol holds a 90% interest in the concession and is the operator, with the state-owned Empresa Nacional de Hydrocarbonetos (ENH) holding a 10% carried interest. We have conducted aerogravity, magnetic and 2D seismic surveys – the latter acquired over 2 247 kilometres – and are processing the data. We are in the final stages of negotiations to farm-out a 40% interest in the concession which will facilitate further evaluation of this under-explored part of the Mozambique basin.

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