Sasol plans to slash its Mozambique capex

South African energy company Sasol will reduce its capex budget for Mozambique following poor results from drilling four oil wells in its production-sharing agreement (PSA) licence in Inhambane province, the company announced in its financial results statement on Monday.

Gas reserves from the PSA are in line with company expectations, but Sasol is redesigning its surface facilities to improve the economics.

The company has already spent $384 million on the project.