Sasol deal 'rips off' Mozambique

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Gas pricing: Sasol’s natural gas operations in Mozambique near Vilankulo in Inhambane province Picture: Justin Brown
Gas pricing: Sasol’s natural gas operations in Mozambique near Vilankulo in Inhambane province Picture: Justin Brown

Johannesburg - Sasol has been criticised for entering into a lopsided contract with the ­Mozambique government for its first $1.2 billion (R15 billion) gas investment so that the country didn’t get a fair share of the benefits from its natural resources.

Don Hubert, a Canadian from Ottawa and named on the Alternative Mining Indaba programme as a Mozambique oil and gas expert, said: “There is a really significant gap between what gas is worth and what the government received.”

For the first 10 years of the project, the Mozambican state where the project is situated got $130 million in tax revenue, he added. This compared with his estimate that the gas piped from Mozambique was worth $700 million a year.

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