(Ecofin Agency) - Ever since South Africa’s Sasol completed the drilling two gas wells in southern Mozambique, the company has shifted focus to the development of two commercial oil reservoirs, located close to its producing gas fields in Temane and Pande.

According to Sasol Exploration and Production International senior VP, John Sichinga, the two gas wells were drilled first so as to support government plans to use the feedstock in a 400 MW Mozambique gas-to-power plant.

Under the terms of the current phase of the production sharing agreement (PSA) field development plan approved in January, Sasol will develop a total of 13 wells which include five gas wells, seven oil wells and a water well. The drilling campaign began in May 2016 and will last till Q1 of 2018.

The energy and chemical group has already started producing from existing wells and processing gas at a four-train central processing facility (CPF) in Temane, from where it is being exported to markets in South Africa and Mozambique.

The existing field development’s attention is now shifting to oil. The drilling of the first oil rim well started in early October, “the rig has moved east to Inhassoro and Sasol is in the process of completing the first well,” Sichinga said.

From Inhassoro, the campaign will move to the six other oil wells sites to ratify adequate oil feedstock for a liquid processing facility (LPF), set aside for development alongside the existing CPF.

“The facility is being designed to produce 15 000 bpd of light oil, as well as 20 000 tpy of liquefied petroleum gas (LPG). We are working with the Mozambican authorities on options to either export the oil and LPG, or to sell the output in-country,” he explained.

The engineering design for the LPF is progressing and construction work is expected to start by mid-2017.

Anita Fatunji