More than US$670 million in tax revenue has flowed to the Mozambican State over the past 11 years from Sasol’s natural gas operations in the country, while the 25% stake held by state-owned Companhia Moçambicana de Hidrocarbonetos (CMH) has generated more than US$800 million through production sharing.
The figures, presented to journalists in Inhassoro, Inhambane province, highlight the fiscal contribution of Sasol’s long-standing upstream operations across the Pande, Temane and Inhassoro gas fields and their growing role in Mozambique’s energy economy. Sasol Petroleum Temane (SPT), which operates the Petroleum Production Agreement (PPA), has consistently ranked among Mozambique’s largest taxpayers. The company ranked first nationally in 2023 and third in 2022, 2024 and 2025. The direct tax contribution comprises corporate income tax, personal income tax, value-added tax (VAT) and royalties paid to the State through the Petroleum Production Tax (PPT). Under the PPA covering the Pande and Temane fields, SPT holds a 70% interest and operates the project, while CMH holds 25% and the International Finance Corporation (IFC) holds the remaining 5%. The interests are held through an unincorporated joint venture, with each participant retaining its separate legal identity.
Sasol Petroleum Temane’s 2025 financial performance illustrates the scale of the operation. According to data from the State General Account, the company generated approximately US$321 million in revenue against US$63 million in operating costs, US$60 million in depreciation and amortisation, US$13 million in financial costs and US$2 million in other costs. Profit before tax stood at approximately US$183 million, while profit after tax reached about US$123 million. SPT contributed approximately US$76 million in taxes in 2025 alone. Corporate income tax accounted for around US$66 million, followed by personal income tax of US$4.5 million, VAT of US$4.3 million, royalties of US$563,000 and other taxes of US$474,000. Beyond the PPA, Sasol operates under a Production Sharing Agreement (PSA) through Sasol Petroleum Mozambique (SPM), in which it holds a 100% interest.
The PSA has a 25-year production period that commenced in 2025 and runs through to 2050. The development is expected to produce 23 million gigajoules (GJ) of natural gas annually, equivalent to approximately 552 million cubic metres, for the Temane Thermal Power Plant (CTT), supporting 450 megawatts of electricity generation capacity. The project is also designed to produce 30,000 tonnes of liquefied petroleum gas (LPG) annually for the domestic market and 4,000 barrels per day of light oil for export. Surplus gas produced under the PSA is exported to Sasol’s operations in South Africa. By October 2025, cumulative net natural gas production from the Pande, Temane and Inhassoro fields had reached 3,306 petajoules (PJ), equivalent to approximately 79.5 billion cubic metres.
The PPA accounted for 3,279 PJ, or approximately 78.8 billion cubic metres, while the PSA accounted for a further 28 PJ, equivalent to approximately 667 million cubic metres since production began in 2025. The State has also received 159 million GJ through the Petroleum Production Tax, paid both in kind and in cash, from the start of production through October 2025. At an estimated conversion rate of 24 cubic metres per GJ, this represents approximately 3.8 billion cubic metres of gas. Around 95 million GJ of the PPT contribution was delivered in kind, equivalent to approximately 2.3 billion cubic metres, through direct delivery of part of the gas produced to the State.
Domestic gas sales have also expanded over time. Since the launch of sales to the domestic market under the third Gas Sales Agreement (GSA3) in 2013, approximately 297 million GJ has been sold, equivalent to around 7.1 billion cubic metres of gas. The fiscal contribution extends beyond national revenues into local development. Under Law No. 16/2022 and Decree No. 40/2023, 10% of Petroleum Production Tax revenue is allocated to local development, with 7.25% directed towards strategic projects in provinces and districts and 2.75% allocated to communities directly affected by oil and gas operations.
According to the 2026 Economic and Social Plan and State Budget (PESOE) for Inhambane province, including the administrative posts of Maimelane and Pande in Govuro district, approximately US$20 million in PPT revenue was generated. Of this amount, about US$2 million was earmarked for local development, comprising approximately US$1.5 million for the provincial and district allocation and US$553,000 for communities directly affected by the operations. The revenue flows underline the increasingly important link between Mozambique’s natural gas resources, public finances and local economic development, as the country seeks to convert its hydrocarbon wealth into broader energy and development outcomes.
