South Africa-based Sasol has obtained approval from the Mozambique Council of Ministers to develop more oil and gas fields in Mozambique.
The approval for the field development plan (FDP) will enable the company to further develop hydrocarbon resources in a bid to support growth in Southern Africa.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Sasol, which earns 40% of its revenue from oil, said that the new project would be located about 600km north of the capital Maputo, Reuters reported.
The project is planned to be implemented in stages.
As part of the first phase of the production sharing agreement (PSA) licence area development, an integrated oil, LPG and gas project has been proposed to be built next to Sasol’s existing petroleum production agreement (PPA) area.
At the PPA area, natural gas is currently produced from the Pande and Temane fields and processed in a central processing facility.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataLater on, it will be transported through an 865km pipeline to gas markets in Mozambique and South Africa.
Sasol president and CEO David Constable said: "The Mozambican gas industry is playing an increasingly important role in the regional energy landscape, and this project represents a major milestone in further developing natural resources, which will significantly benefit Southern Africa.
"The PSA development is aligned with our commitment to both Mozambique and South Africa, and will enable us to drive our broader 2050 strategy, which reaffirms Sasol’s longer term role in Southern Africa."
