Sasol Gives up Gas Hunt off Mozambique

South Africa's Sasol has relinquished licences for offshore blocks 16 and 19 off the coast of Mozambique, it said on July 6.

Sasol was awarded the blocks in June 2005. After undertaking exploration work, Sasol gave up rights to the deepwater sections of the areas in July 2013, while retaining the shallow parts of the licences. It later carried out a pre-feasibility assessment of the environmental impact of further activities, hiring Golder & Associates as a consultant.

"Sasol will relinquish blocks 16 and 19 in their entirety to the government of Mozambique. A withdrawal notification has been issued to the relevant Mozambican authorities," it said in a statement. 

The company is still exploring for gas at onshore fields in Pande and Temane, in Mozambique's northern Inhambane province. But it is looking to divest its stake in a pipeline that pumps gas from deposits in these areas to South Africa.