Sasol which began drilling its first well in its new oil and gas field last week, has said that Mozambique’s debt crisis will not affect its $1.4 billion gas project as it will fund all expenses and recover them through gas revenues.

Mozambique has acknowledged nearly $1.35 billion of secret government loans in recent weeks, thereby making the country fall into a foreign debt crisis, Reuters reports.

Last week, the South African company commenced the drilling of the first well on the Production Sharing Agreement (PSA) licence in onshore Inhambane province, Mozambique, as part of the first phase of its field development plan.

The phase 1 development plan envisions the development of more hydrocarbon resources that will assist in driving the growth of both Mozambique and Southern Africa. This is expected to cost about $1.4 billion.

This field development plan includes the delineation and initial development of the Temane G8, Temane East, Inhassoro G6 and Inhassoro G10 reservoirs. Thirteen production wells will be spud during this first phase, while oil and LPG production facilities will be installed near the current Central Processing Facility (CPF).

Anita Fatunji