The gas deal is part of the Production Sharing Agreement (PSA). Sasol and empresa Nacional de Hidrocarbonetos (ENH) will act as sellers, with gas from the Temane power plant going to Electricidade de Moçambique (EDM). There are currently 12 active concession contracts, including 10 for exploration and production and 2 for the construction and operation of oil and gas pipeline systems. For the purposes of the Petroleum Act, a concession contract area is the area in which the rights holder is authorized to conduct petroleum transactions. It also defines oil operations as those relating to the planning, preparation and execution of reconnaissance, exploration, development, production, processing, storage, transport of oil, cessation of such activities or cessation of the use of infrastructure, including the implementation of a decommissioning plan, the sale or delivery of crude oil at the place of supply or loading as goods. supplied in the form of liquefied natural gas or intended for energy production or industrial use. Law No. 21/2014 of 18 August 2014 on Petroleum provides that the conduct of oil transactions is subject to the signing of a concession contract that grants rights to (a) education, (b) exploration and production; (c) the construction and operation of oil or gas transmission networks; and (d) the construction and operation of infrastructure. Sasol has signed agreements for the supply of gas and LPG so that work can begin in the upstream, intermediate and downstream sectors in Mozambique. No official copies of the new government-approved oil law have been released. A new oil law should not introduce significantly different tax conditions, which are mainly set out in separate tax legislation and applicable exploration and production concession contracts. This new oil law should recognize that gas, not oil, is Mozambique`s main hydrocarbon resource and will provide a clearer framework for infrastructure development to reflect the likelihood of Mozambique hosting large export infrastructure projects.
A new oil law should also address: (i) more onerous environmental obligations; (ii) increased commitments to local content; and (iii) financial reporting requirements. The contract aims for the integrated development of 23 P/A of natural gas for electricity production through the CTT project, the production of 4,000 barrels per day (during peak) of light oil for export and the implementation of the LPG project of 30,000 tons of LPG (cooking gas) per year for the domestic market. MIREME said in the statement. According to a press release from Sasol, on February 19, 2021, the company`s board of directors approved the FID for the Production Sharing Agreement (PSA) license area in Mozambique, with the total cost of the project estimated at $760 million. Two (2) of all exploration and production concessions are located in the Rovuma Basin, Zones 1 and 4, and the other 8 concessions in the Mozambique Basin, namely: East Africa is becoming one of the largest new gas zones in the world following a series of major discoveries that producers hope to monetize largely through LNG sales to Asia. Despite the discoveries of material gas in this region, East Africa remains a border basin, and legislation and policy continue to evolve to take advantage of opportunities arising from large-scale gas exploration and production. There can be up to 1.2 trillion cubic feet (34 billion cubic meters) of gas in the PSA license. ”I would like to thank the SCCA for this excellent service! The articles included in the newsfeeds are very useful and informative, and the user-friendly format of the newsfeeds means I can quickly take a look at the precise in the emails to choose what I want to enlarge.
”We are looking at all options, including LNG and deliveries from the Rovuma Basin [in northern Mozambique], in addition to exploration at Pande Temane. In the coming years, we will take steps towards the energy transition, it will include gas and renewable energy,” said Victor. Montfort Group acquires oil storage terminal in Mozambique Sasol wrote in a statement issued today: ”It is important to note that this project will involve the monetization of gas in Mozambique through a 450 megawatt gas-fired power plant and a liquefied natural gas (LPG) power plant during the same period. The rest of the gas produced will be exported to South Africa to maintain our operations. The Energy Chamber condemns the trial, which limits funding to Mozambique LNG, as ill-advised and. . PSA will supply 23 PJ of gas per year for Temane`s Central Termica Power Project (CTT). In addition, according to MIREME, the project, which is part of the government`s five-year plan 2020-2024, is crucial for Mozambique`s economic development. The project, the company adds, will involve the monetization of gas in Mozambique through a 450-megawatt gas-fired power plant and a liquefied natural gas (LPG) power plant during the same period. Sasol ”needs to improve our game,” said Chief Financial Officer Paul Victor, by reducing coal consumption and Mozambique`s PSA is a first step in that direction, although it needs to secure additional supplies.
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