MOZAMBICAN GAS
Sasol urged to cut new licence deal in Maputo
Global activist group accuses Sasol of 'abusive transfer pricing' because of the low price it pays for gas in Mozambique sold at a premium in SA
Civil society organisations have called for Sasol to renegotiate the terms of its Mozambican licences, based on research concluding that it is paying too little for the gas it is extracting under an agreement that was signed 17 years ago. If Mozambique’s government does so, it would be following the example of other sub-Saharan countries that are trying to renegotiate contracts with mining and exploration companies, such as the Democratic Republic of Congo and Tanzania. But backtracking on previous agreements can deter new investors. Sasol signed a Petroleum Production Agreement in 2000 and a company was formed in which Sasol held 75%, the Mozambican government 20% and the International Finance Corporation 5%, to exploit the gas in the Pande and Temane fields. Sasol has subsequently signed a second agreement, the production sharing agreement, to exploit oil and gas at Inhassoro. To date it has invested about $3bn in Mozambique. In a report released on Thursday titled Inflation of Co...
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