CiP says there are conflicts of interest in gas exploration in Mozambique

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CIP report indicates that Sasol operates gas in Mozambique and sells itself at low prices in South Africa and then sells at a high price




The Public Integrity Center says there is a conflict of interest in Sasol’s gas exploration. The company operates gas in Mozambique and sells itself at low prices in South Africa, and then sells at a high price.

Entitled “Sasol will continue to enrich the Mozambican state and the dairy cow,” the CIP report analyzes the exploitation of gas by the South African multinational, and points out the existence of conflicts of interest.

For the CIP, this case should be brought to the African Union, because it involves two countries of the continent. However, it is clear that Mozambican entities are accommodated with irregularities.

The report also raises the fact that there are few gains from gas exploration for the Mozambican state. This is because the tax collection is reduced, based on the low prices that Sasol applies in the sale of the gas.

In the last 10 years, from 2004 to 2014, Mozambique has collected only US $ 14 million, a little over 800 million meticais, corresponding to 7% of the 120 billion meticais projected for the 25 years of the project by the Ministry of Mineral resources.

Also in the presentations of the CIP, today, the development plan of the exploration of light oil in Inhassoro, province of Inhambane was analyzed. One of the problems raised is the non-declaration of how much Sasol could gain from the exploitation of this resource, which also weakens the gains to the State. The CIP recommends reviewing the gas prices practiced by Sasol and that there be greater control by the Mozambican state.

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