Sasol, the South African energy and chemicals multinational with natural gas exploration and production operations in Mozambique, contributed more than $670 million in taxes to the state over the past 11 years, while the Companhia Moçambicana de Hidrocarbonetos (CMH) stake in production generated more than $800 million. The figures were presented by Sasol's director of corporate relations, Mateus Mosse, at the company's annual media briefing held in Inhassoro, Inhambane province.
The contributions stem from natural gas and other hydrocarbons exploration and production operations at the Pande, Temane, and Inhassoro fields. Sasol Petroleum Temane (SPT), operator of the Petroleum Production Agreement (PPA), has ranked among the country's largest corporate income taxpayers, reaching first place in 2023 and third place in 2022, 2024, and 2025.
Direct tax contributions include Corporate Income Tax (IRPC), Personal Income Tax (IRPS), Value Added Tax (VAT), and royalties paid to the state through the Petroleum Production Tax (IPP). Under the PPA, which covers the Pande and Temane fields, SPT holds a 70% operating interest, CMH holds 25%, and the International Finance Corporation (IFC) holds 5%. The arrangement operates as an unincorporated joint venture, a structure in which each partner retains its own legal identity.
Financial results for 2025 illustrate the scale of this contribution. According to data from the State General Account (CGE), SPT recorded revenues of approximately $321 million, against operating costs of $63 million, depreciation and amortisation of $60 million, financial costs of $13 million, and other costs of $2 million. Pre-tax profit stood at approximately $183 million, while post-tax profit reached approximately $123 million.
In 2025 alone, SPT's total tax contribution amounted to around $76 million. Of this, approximately $66 million corresponded to corporate income tax, $4.5 million to personal income tax, $4.3 million to VAT, $563,000 to royalties paid to the state, and $474,000 to other taxes.
Beyond the PPA, Sasol operates a licence under a Production Sharing Agreement (PSA) through Sasol Petroleum Mozambique (SPM), in which it holds a 100% interest. This concession carries a 25-year production period that commenced in 2025 and runs through to 2050. Production under the PSA includes 23 million gigajoules (GJ) of natural gas per year — equivalent to approximately 552 million cubic metres — supplied to the Temane Thermal Power Plant (CTT) for the generation of 450 MW of electricity, as well as 30,000 tonnes per year of liquefied petroleum gas (LPG) for the domestic market and 4,000 barrels per day of condensate for export.
Surplus gas produced under the PSA is exported to Sasol's operations in South Africa. Through October 2025, cumulative net natural gas production from the Pande, Temane, and Inhassoro fields reached 3,306 petajoules (PJ), equivalent to approximately 79.5 billion cubic metres. Of this total, 3,279 PJ related to the PPA — equivalent to 78.8 billion cubic metres — while the remaining 28 PJ accumulated under the PSA since the start of production in 2025 represented approximately 667 million cubic metres.
Under the IPP framework, a total of 159 million GJ has been delivered to the state — in kind and in cash — from the start of production through October 2025. Applying an equivalence of approximately 24 cubic metres per GJ, this volume represents around 3.8 billion cubic metres of gas. Of this total, approximately 95 million GJ were delivered in kind — equivalent to around 2.3 billion cubic metres — through the direct transfer of a portion of gas produced to the state. Since 2013, when commercialisation for the domestic market began under the third Gas Sale Agreement (GSA3), approximately 297 million GJ have been sold, equivalent to around 7.1 billion cubic metres of gas.
A portion of IPP revenues is channelled towards local development under Law No. 16/2022 and Decree No. 40/2023. The legislation stipulates that 10% of IPP revenues be allocated to local development: 7.25% to structural projects in the province and districts, and 2.75% to projects directly benefiting communities affected by petroleum operations.
According to data from the 2026 Economic and Social Plan and State Budget (PESOE) for Inhambane province — covering the administrative posts of Maimelane and Pande in Govuro district — the IPP generated was approximately $20 million. Of this, around $2 million corresponds to the 10% earmarked for local development, of which approximately $1.5 million relates to the 7.25% share for the province and districts, and $553,000 is directed to local communities.
The distribution of this portion of tax revenue creates a direct link between natural resource extraction and the development of areas covered by the operations. Part of the revenues generated by gas production is thereby channelled into structural projects and community initiatives, while the activity continues to contribute to national energy supply and state revenues.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/21/oilgas/apresentacao-anual-da-sasol-impostos-pagos-ao-estado-ultrapassaram-670-m-em-11-anos/
