PETROMOC lands $45 million condesate gas deal from Sasol, Partners

Sasol and its partners have entered into an agreement with Petróleos de Moçambique (PETROMOC), Mozambique’s state-owned distributor of petroleum products in a deal that will see PETROMOC sell condensate from the Central Processing Facility in Temane, Inhambane province to the South African giant.

According to Sasol the deal is in a move to promote local content in Mozambique and help in the growth of county economic development.

“Promoting local content is key to ensuring that the oil and gas industry promotes in-county economic development. We have been focusing on identifying, and sustaining Mozambican suppliers that can support and help develop our activities and participate meaningfully in the value chain of the growing hydrocarbon industry,” says John Sichinga, Senior Vice President, Sasol Exploration and Production International.

Proposals received were evaluated independently in terms of a set of established criteria by the unincorporated joint venture partners in the Petroleum Production Agreement licence, namely Sasol (70%), Companhia Moçambicana de Hidrocarbonetos (25%) and the International Finance Corporation (5%).

Sichinga adds that the partners intend to progress developing and growing Mozambican suppliers that can fulfil similar roles in our value chain.

According to Fernando Uache, CEO of Petromoc Sasol is and will continue to be a natural partner for Petromoc as Sasol was where the company set its first joint venture in the context of activities that constitute its core business.

“Today, to earn the trust of Sasol in a contract of this dimension, confirms the affinities of both companies and the role of complementarity that Petromoc can play for the upstream activities developed by Sasol in Mozambique,” said Uache.

Sasol has been in Mozambique for more than a decade when, together with its partners, CMH and IFC developed the Pande/Temane natural gas project a project that pioneered the monetisation of the Pande and Temane gas fields which had been effectively ‘stranded’ for over 30 years.

The natural gas project has resulted in significant benefits flowing to Mozambique, with the investment unlocking the country’s natural wealth and providing a platform for much-needed foreign investment, economic growth, skills and social development.

 

Author: OilNews

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