Fruitless search for gas reserves off central Mozambican coast

The South African company, SASOL, announced last week that it was postponing prospecting for natural gas in the Bay of Sofala, off the central Mozambican coast, as seven months of searching had shown no economically viable reserves, local media reported on Monday. The conclusion was drawn from data assessment of two wells drilled in the Mozambican continental shelf, about 17 km south of the central city of Beira. While the first well did show signs of the presence of gas, the second did not, the report said, adding that after US $17 million had been spent on the exercise, SASOL made the decision to seal and abandon the two wells. Failure to find significant offshore gas deposits also means that the final decision on whether to build a petrochemical complex in Beira, which will supply different types of fuel to the whole central and northern region of Mozambique, has also been postponed. The agreement on building the petrochemical plant, signed between the Mozambican government and SASOL in July 2000, was conditional on discovering natural gas in Sofala Bay. General manager of SASOL Martin Vorster said that his company will decide by July this year on whether to renew or cancel its licences for prospecting in Sofala Bay.