BJ Services Wins Sasol Contract

BJ Services Company has been awarded a contract by SASOL Petroleum Temane Limitada (SPT), a division of SASOL Petroleum International (SPI), to provide cementing and filtration services in Mozambique.

SPT awarded the multi-million dollar contract to BJ Services to support Phase II of its Mozambique Natural Gas Project, which involves the development of both the Temane and Pande Gas Fields. BJ is supporting SPT's plans for a large number of gas wells, including new drills, workovers and abandonments of old exploration wells, on the SPT lease. Newly discovered reserves during Phase II will go towards the expansion of SPT's existing gas sales agreement. This is intended to include the development of new gas markets in Mozambique.

BJ has brought in two pumpers from its US domestic fleet to accomplish this work alongside additional purpose-built mixing equipment manufactured in Cape Town, South Africa. It is also using a cement storage and cutting bulk plant, complemented by mobile bulk transports, dedicated workshop, and laboratory onsite at the main SASOL contractor camp on Pande Field.

The contract, which is scheduled for completion in early 2008, is being supported by BJ Services personnel onsite, and at the BJ area base in Cape Town, South Africa.

Previously, BJ provided cementing and filtration services for SPT on Phase I of the project, an effort that involved drilling 18 gas wells in the Inhambane province, a remote location approximately 800 kilometers north of the capitol, Maputo. With Vilanculos, the closest town to the site, nearly 30 kilometers away, it was logistically challenging.

"This contract award is especially meaningful because BJ was one of a select few service companies that worked on Phase I of the project to be selected to work on Phase II," said Umberto Micheli, well services region manager-Europe and Africa for BJ Services. "Once again, we are working in close co-operation with SASOL to protect the environment and provide a safe working environment," he added.

Based in Johannesburg, SASOL Limited (of which SPI is a subsidiary) is primarily an energy company. Its future growth area in Mozambique lies in advancing its US$1.2 billion natural gas investment, which has included the development of the Temane and Pande gas fields and the construction of an 865 kilometer cross-border pipeline between the Temane based Central Processing Facility (CPF) and its massive petro-chemical complex at Secunda, South Africa. Although SASOL owns and operates oil refineries in South Africa, this is the company's first major venture into the upstream oil and gas industry as an operator vis-a-vis its upstream business unit, SPI. In addition to Mozambique, the company has emerging oil and gas interests in Equatorial Guinea, Gabon, Nigeria and Qatar. SPI's future global expansion strategy includes the exploitation of stranded gas reserves using SASOL's proprietary Gas to Liquids (GTL) technology.