SOUTH Africa’s integrated energy and chemical company, Sasol, has confirmed the success of two of its three applications in Mozambique’s 5th Licensing Round.
Sasol (70 percent interest, operator) and Empresa Nacional de Hidrocarbonetos (ENH), the state oil company (30 percent carried interest), were awarded the onshore Area PT5-C, which is 3,012 square kilometres, adjacent to the Pande and Temane fields.
Sasol’s commitment to Mozambique began well over a decade ago, when the Pande/Temane natural gas project was developed, in partnership with Companhia Mocambicana de Hidrocarbonetos S.A and the International Finance Corporation (IFC).
The other successful bid was for Area A5-A, which is 5,145 square kilometres, situated in the offshore Angoche Basin. In this block, Eni will act as operator (34 percent), with Sasol and Statoil holding 25.5 percent each and ENH holding a 15 percent carried stake.
‘Together with our bid partners, we welcome the opportunity to further participate in the growth and development of Mozambique, the heartland of our upstream operations. The country has been, and continues to be, a strategic partner for Sasol,’ said David Constable, Sasol’s president and chief executive officer.
In a separate development, state-owned Indian Oil Corporation (IOC) has partnered Delonex Energy, a new Africa-focused oil and gas explorer led by former Cairn India chief Rahul Dhir, to win its maiden oil block in Mozambique.
IOC and Delonex were awarded onshore Block P5-A in southern Mozambique, a company executive said.
Officials said Delonex would operate the 9,988 square km Area P5-1 in the Palmeira basin, while IOC will hold 20 per cent interest. Mozambique’s national oil company ENH will hold the remaining 10 per cent. The partners have committed $20 million in first phase of exploration, which will last three years.
Mozambique had on October 23, 2014 launched its fifth licensing round offering 15 petroleum concessions.
The licensing round was delayed for more than two years while new petroleum laws were being finalised. The bids were to close on April 30, 2015 but were delayed to July 30.
Out of the eight applications, Mozambique’s upstream regulator awarded only six contract areas. IOC-Delonex were the sold bidder for onshore Block P5-A.
Dhir has got private equity firm Warburg Pincus to commit up to $600 million for the oil and gas explorer he had floated.