Sasol’s field development plan (FDP) for the Production Sharing Agreement (PSA) licence in Inhambane province, Mozambique, reached an important milestone with the commencement of the drilling of the first well.
Adjacent to its current producing Petroleum Production Agreement licence, the PSA development is an integrated oil, Liquefied Petroleum Gas (LPG) and gas project.
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 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,” 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 drilling 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 US$1,4 billion.
Phase 1 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.