Latest Oil and Gas: New wells give Sasol a boost

oil bust

Energy and chemicals group Sasol has increased its natural gas, condensate and crude oil production in Mozambique and Gabon in the year ended June.

The company said in a production and sales update on Friday 5 August, that natural gas production from Mozambique had increased from 11.3-billion standard cubic feet to 16.4-billion standard cubic feet.

“(The) increase in production is due to our efforts to de-bottleneck the production facility and the increase in the gas transformation capacity to 169-billion standard cubic feet”, Sasol said. Sasol has been producing natural gas at its central processing facility in Temane, Mozambique, since 2004.

The gas, from the Pande and Temane gas fields in Mozambique, is transported through a 66.04-centimetre, 865-kilometre pipeline from Temane to Secunda (South Africa) and markets in Mozambique. In May, Sasol announced expansion plans, which included drilling 13 onshore exploration wells in Mozambique. The company also plans to build an integrated oil and liquefied petroleum gas facility and a gas processing train at the central processing facility to process the additional gas.

Sasol said crude oil production from Gabon from 1,339 thousand barrels last year to 1,529 thousand barrels. The increase from prior year is mainly due to new wells from the Etame Expansion Project and South Etame and North Tchibala coming on line.

The comparative crude oil production volumes for Gabon have been restated to exclude royalties to reflect the net production volume throughout, Sasol said. Sasol said natural gas production in Canada had fallen from 21.8-billion standard cubic feet to 20.7-billion standard cubic feet.

“In line with our low oil price response plan, we have reduced appraisal, development and drilling activities in Canada during the 2016 financial year until such time we see a sustainable recovery in North American gas prices”, Sasol said in the production update. Sasol’s energy business increased liquid fuels production by 1% compared with last year.

It attributed the 1% increase in total synfuel production, a higher portion of synfuels volumes utilised by the energy business in the first half of the financial year, to the commissioning of an expansion project at the Secunda complex and a stable throughput from the National Petroleum Refiners of South Africa (Natref). Natref is jointly owned by Sasol and Total South Africa.

Sasol’s sales of so-called white product liquid fuels, which include diesel, petrol and jet fuel, declined marginally from 59.2-million last year to 58.8-million barrels.

Source: Independence Online

Sasol reiterates commitment to evaluating reserves in Inhambane Province

On Thursday 11 August, Sasol reaffirmed its commitment to research in order to determine the quantities of deposits in the northern regions of Inhambane Province with the aim of ensuring the production and marketing of oil.

The vice-president of Production and Exploration in Inhambane, John Sichinga, said that research to this effect is already underway in several areas of Inhassoro.

This research includes the collection traces of samples which serve to justify the effective exploitation of this resource.

Sichinga explained that Sasol, since being established in the country roughly 15 years ago, has invested approximately US$1.2-billion in research and natural gas exploration, specifically in the construction of the Temane Processing Centre.

Roughly 90% of the potential energy produced by Sasol in Pande (in Govuro) and Temane (in Inhassoro), is consumed by neighbouring South Africa, with only 10% for the domestic market.

To meet demand, the processing plant increased its production capacity from 122-million gigajoules to 188-million gigajoules.

With the completion of the new infrastructure and the installation of equipment for this purpose, the Temane plant could reach 197-million gigajoules per year as of 2017.

In the context of social responsibility, the company invested approximately US$20-million in the implementation of 150 projects benefiting over 500,000 people in the south of the country in the areas of education and health. The company has also constructed numerous water sources for the local population.

Source: Jornal Notícias

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