• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 33 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 7 hours Socialists want to exorcise the O&G demon by 2030
  • 1 day Chevron to Boost Spend on Quick-Return Projects
  • 11 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 21 hours Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 11 hours Maritime Act of 2020 and pending carbon tax effects
  • 1 day UK, Stay in EU, Says Tusk
  • 1 day Conspiracy - Theory versus Reality
  • 2 days What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 2 days German Carmakers Warning: Hard Brexit Would Be "Fatal"
How To Profit From The Death Of Las Vegas

How To Profit From The Death Of Las Vegas

This year, legal cannabis exploded…

Mozambique’s First Oil Production To Begin In 2-3 Years

Oil and Gas Refineries

South Africa-based chemicals and energy company Sasol plans to begin producing oil in Mozambique within three years, which would mark the first oil output in the impoverished African country, Sasol’s joint chief executive Stephen Cornell told Reuters in an interview on Monday.

Mozambique is primarily known for big offshore gas reserves in which companies such as Italy’s Eni SpA and U.S. Anadarko invest.

Now Sasol is betting on oil production.

This will be the first oil wells in Mozambique that go to full development. Probably in two, maximum three years,” Cornell told Reuters.

We have drilled four wells, two of them gas, two of them oil, all showing positive results. In one of the areas where we expected mostly gas we found gas and oil,” the manager noted, adding that Sasol had sent a “notice of discovery” to the Mozambique government.

In May last year Sasol said that it started drilling of the first well under its Production Sharing Agreement (PSA) license in Inhambane province in Mozambique. Back then the first phase of the PSA Development –- which includes the drilling of 13 production wells -- was anticipated to cost around US$1.4 billion.

In its press release on the results for the six months ended December 31, 2016, Sasol said today that the first phase of the development of PSA license area remains on budget and schedule.

Related: Is The Renewable Transition Harming The U.S. Economy?

To date, four wells have been drilled and completed, two gas wells in the Temane G8 reservoir and two oil wells in the Inhassoro G6 reservoir…The third oil well (or fifth well) was spudded in early February 2017,” the company said.

Sasol is confident that “the economics to develop the Production Sharing Agreement license area remain positive”, Cornell said in the statement.

On the downside for the group’s plans for the full fiscal year 2016/17 though June, Sasol said that it is revising down its total capital expenditure, mostly due to the impact of the stronger

South African rand/US dollar exchange rate, in addition to cash conservation initiatives and active management of its capital portfolio.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News