South Africa’s integrated energy and chemical company, Sasol, has stated that it has started drilling its first well under its field development plan (FDP) for the Production Sharing Agreement (PSA) in Inhambane, Mozambique
Earlier this year, the Mozambican government endorsed the FDP, of which shortly after that Sasol commissioned a drilling rig from French-based drilling contractor Société de Maintenance Pétrolière that arrived in Maputo on 19 March 2016.
Local media reported that the company described the new PSA as "an integrated oil, liquefied petroleum gas (LPG) and gas project".
It is reported that Sasol already operates the Pende and Temane natural gas fields, and pumps gas along a pipeline across southern Mozambique to the Sasol chemical plants in South Africa.
According to the media, a company statement has revealed that 13 wells are planned to be drilled during the initial phase of the FDP estimated to cost $14 million, while oil and LPG production facilities will be installed near the existing gas processing plant at Temane.
A fifth gas processing train will be added at Temane to process the additional gas expected from the new wells.
John Sichinga, senior vice president at Sasol Exploration and Production International commented, stating that the start on drilling 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.”
Meanwhile a company statement explained: "Phase one development represents the optimal development of four of the PSA geological layers in a safe and sustainable manner to the benefit of all stakeholders.
“The utilisation of existing infrastructure in the area enables the safe and efficient use of resources, while the development in tranches of the complex reservoirs is a prudent approach for timely de-risking of subsurface resources and maximisation of overall project value.”