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Johannesburg – Sasol has started the drilling of its first well in terms of its production sharing agreement (PSA) licence in Mozambique.
The PSA development is an integrated oil, liquefied petroleum gas (LPG) and gas project. This first phase is anticipated to cost about $1.4bn.
The phased development plan envisages the development of further hydrocarbon resources that will help to drive the growth of both Mozambique and Southern Africa.
“The spud of the first well in the PSA licence 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,” said John Sichinga, senior vice president of Sasol Exploration and Production International.
Sasol's field development plan (FDP) for this PSA licence is in the Inhambane province. It is adjacent to Sasol's current producing petroleum production agreement licence.
The beginning of the drilling campaign, started on Thursday, is part of the first phase of the FDP. Thirteen production wells will be drilled (including a water disposal well) during this initial phase, while oil and LPG production facilities will be installed.
Mozambique’s Council of Ministers approved the PSA FDP in January this year. Sasol then commissioned a drilling rig from French-based drilling contractor Société de Maintenance Pétrolière.
By early afternoon trade on Thursday Sasol's share price was up 2.12% at R488.11.
