Name of the Project
Sasol production sharing agreement (PSA) licence area development project.

Location
Mozambique.

Client
Sasol.

Project Description
The field development plan will result in further hydrocarbon resources being developed to support Sasol’s Southern Africa growth drivers.

The first phase of the PSA licence area development proposes an integrated oil, liquefied petroleum gas and gas project adjacent to Sasol’s petroleum production agreement (PPA) area. Sasol already produces gas and condensate from the Pande and Temane fields in the PPA area.

The project includes the development of a fifth train at the central processing facility to process additional gas from the PSA licence area.

Jobs to Be Created
Not stated.

Value
Tranche 1 of the first phase of the PSA development project, including the fifth train, will cost an estimated $1.4-billion.

Duration
Sasol expects to complete a 13-well drilling programme by the end of 2018. The project’s beneficial operation date is 2020.

Latest Developments
The PSA Phase 1 and Phase 2 drilling activities have been completed. Eleven wells were drilled in the year to June 30, comprising seven oil wells and four gas wells.

The Inhassoro oil reservoirs have proven more complex than expected and, with the reduced expectation of recoverable oil volumes and uncertainty on the oil price, Sasol is considering maximising the use of existing processing facilities in the adjacent petroleum production agreement (PPA) facilities.

Phase 1 gas results confirm gas resources cover for Central Termica Temane,

formerly Mozambique gas-to-power project.

Phase 2 appraisal drilling results indicate gas volumes to be at the lower end of initial estimates. Focused efforts are under way to assess the range of options and possibilities to sustainably secure and source gas feedstock.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The first phase of the development of the PSA licence area remains on budget and on schedule.

Contact Details for Project Information
Sasol head of group relations Alex Anderson, tel +27 11 441 3295 or email alex.anderson@sasol.com.