Sasol strikes gas off Moz

Johannesburg - Sasol, the world's largest fuel from coal producer, on Thursday indicated that Sasol Petroleum Sofala had struck gas off the coast of Mozambique.

Sasol Petroleum Sofala, a wholly owned subsidiary of Sasol Petroleum International, has just completed its first exploration well in Mozambique where "the well accessed the predicted targets and measurements indicate the presence of gas".

"The well is currently being tested," the company said in a statement.

Drilling of Njika-1 commenced on October 1 this year and Sasol is planning a second well in the same licence area.

The exploration is considered a further development of Sasol's significant gas business in Mozambique.

"This is extremely encouraging news, but we still need to complete a significant amount of work before we can establish the commercialness of this discovery," said Sasol Group general manager Lean Strauss.

"A development in the deep offshore areas of Mozambique will require large investments and gas finds have to be substantial in order to be economically viable. We will only be able to determine commercialness after extended testing and further appraisal work is done," Strauss said.

As operator Sasol holds a 50% participating share in the licence while Malaysian petrochemical giant Petronas holds a 35% interest and the Government of Mozambique represented by its national oil company, Empresa Nacional De Hidrocarbonetos De Mozambique holds the remaining 15% interest.

At 16:28 shares in Sasol were trading 5.98% or R14.03 lower at R221.50 on the JSE.

- I-Net Bridge