Pande&Temane PPA Area

The Petroleum Production Agreement (PPA) was signed on 26^th October 2000 by Sasol, Empresa Nacional de Hidrocarbonetos (ENH), Companhia Moçambicana de Hidrocarbonetos (CMH) and the Government of Mozambique with the aim to develop and produce gas resources from Pande and Temane reservoirs. As part of the Sasol “Mozambique to South Africa Natural Gas Project”, the agreement envisages the construction of:

• A Central Processing Facility (CPF) to process initially 120 MGJ per annum;
• A Pipeline with an extension of 865 km to transport the produced gas from Temane (Mozambique) to Secunda (South Africa). This pipeline has five Off-take points to supply gas to the Mozambican market.

The PPA covers the reservoirs in the Pande and Temane gas fields, the Upper Cretaceous Lower Grudja formation, in Grudja 6 (G6) and Grudja 9 (G9) reservoirs, respectively. The two reservoirs have an estimated total gas initial in place of about 4.5 tcf as a base estimate.

The natural gas production started in 2004 in the Temane field, and in 2009 the Pande field was coupled to the CPF. The total amount of gas produced from 2004 to 2018 is 2,087 MGJ (Million Giga Joules) (equivalent to about 1.8 tcf or 50,250 million Nm3 - normal cubic meters gas), and condensate produced is 7.1 MMbbl (Million barrels).

On each of the two gas fields about 30 wells have been drilled in previous contracts and in the PPA, including both appraisal and development wells. The two fields are covered by 2D seismic data of different vintages (six 2D seismic surveys from 1990 to 2005, in addition to older seismic). In 2016 Sasol acquired 42 square km 3D seismic in the central part of the Pande field surrounding the well Pande-4, and in 2018 drilled the first infill horizontal well in the G6 reservoir in the Pande Field.

Present (since 2006):

• • Sasol Petroleum Temane, 70 % (operator)
• • Companhia Moçambicana de Hidrocarbonetos (CMH), 25 %
• • International Finance Corporation (IFC), 5 %