Sasol commences drilling of Mozambique PSA license

JOHANNESBURG (PRNewswire) -- Sasol's field development plan (FDP) for the production sharing agreement (PSA) license in Inhambane province, Mozambique, reached an important milestone with the commencement of the first well.  The spud marks the beginning of the drilling campaign, which is part of the first phase of the FDP; the delineation and initial development of the Temane G8, Temane East, Inhassoro G6 and Inhassoro G10 reservoirs.

Thirteen production wells will be drilled (including a water disposal well) during this initial phase, while oil and LPG production facilities will be installed close to the existing central processing facility (CPF).  A 5th gas processing train will be installed at the CPF to process the additional gas.

"The spud of the first well in the PSA license 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, Sasol Exploration and Production International. 

Mozambique's Council of Ministers approved the PSA FDP in January this year. Shortly thereafter, Sasol commissioned a drilling rig from French-based contractor Société de Maintenance Pétrolière which arrived in Maputo port on 19 March.

The phased development plan envisages the development of further hydrocarbon resources that will help to drive the growth of both Mozambique and Southern Africa.

This first phase of the PSA development is anticipated to cost approximately U.S. $1.4 billion.  Phase 1 development represents the optimal development of four of the PSA geological layers in a safe and sustainable manner. The utilization of existing infrastructure in the area enables an efficient use of resources.