Sasol and its partners in Mozambique have signed an agreement with Petroleos de Mocambique (Petromoc) to purchase condensate from the latter
The move is a part of Sasol’s drive to promote local content in Mozambique. Petromoc, The country’s state-owned distributor of petroleum products, will supply the condensate from the Central Processing Facility in Temane, Inhambane province.
Citing the importance of promoting local content in ensuring that the oil and gas industry promoted the country’s economic development, John Sichinga, senior V-P for international exploration and production at Sasol, said, “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.”
Proposals for the supply of condensate 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, Companhia Moçambicana de Hidrocarbonetos (CMH) and the International Finance Corporation (IFC).
According to Fernando Uache, CEO of Petromoc, “Sasol is and will continue to be a natural partner for Petromoc. It was with Sasol that we set our first joint venture in the context of activities that constitute our 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.”
South Africa-based Sasol, together with CMH and IFC, developed the Pande/Temane natural gas project in Mozambique more than a decade ago, and the project allowed both the gas fields to be monetised after being undeveloped for more than 30 years.
