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Sasol strengthens Mozambique ties

30 August 2010

South African petrochemical giant Sasol and Malaysian oil company Petronas have jointly assigned a 15% participating interest in the M-10 Block offshore Mozambique to Empresa Nacional de Hidrocarbonetos (ENH), Mozambique's national hydrocarbon exploration company.

This results in an equity split in the M-10 Block of a 42.5% participating interest to each of Petronas and Sasol, through its Sasol Petroleum International subsidiary, with the remaining 15% to be held by ENH.

Sasol Petroleum International (SPI) also assigned a 15% participating interest in the Sofala Block, offshore Mozambique to ENH, with SPI owning the whole of the remaining stake.

Responsible, representative developments

ENH assumes the aforementioned assignments in the Sofala and M-10 Blocks in their capacity as representative entity of the Mozambique Government.

Sasol remains operator of both the Sofala and M-10 Blocks.

"It is an important milestone for SPI to have ENH as part of the exploration activities in the Sofala and M-10 Blocks," Sasol Petroleum International MD Ebbie Haan said in a statement this week.

He pointed out that the deal was proof of Sasol's long-term commitment to responsible and representative development of Mozambique's valuable natural resources.

"The two blocks form an integral part of SPI's growth strategy in our Mozambican heartland, and the assignments to ENH substantially strengthen the relationship Sasol has with the government and the people of Mozambique," Haan said.

Oil and gas exploration

Sasol Petroleum International develops and manages Sasol's upstream interests in oil and gas exploration and production in a number of countries. SPI also pursues gas exploration opportunities to enable it to supply feedstock to potential Sasol gas-to-liquids plants.

SAinfo reporter