• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 1 day Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 11 hours The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 4 days What China is Learning from Russia's War in Ukraine and its Consequences

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

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News