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AfrOil PERFORMANCE AfrOil

Sasol objects to reports of overstated

recoverable costs in Mozambique

MOZAMBIQUE SOUTH Africa’s Sasol has denied claims that it recoverable costs reported by Sasol in FY 2017
significantly overstated its recoverable costs for were not actually eligible for recovery. The audit
projects in Mozambique. also concluded that another $49.3mn of the
Last week, the company responded to reports $114.4mn in recoverable costs reported for FY
that the preliminary results of the 2019 Gen- 2018 were similarly ineligible, it said.
eral State Account (CGE), an audit ordered by If these numbers are correct, Sasol overstated
the Mozambican Ministry of Economy and its recoverable costs for the years covered by the
Finance, showed that it had inflated its recovera- audit by around $99.8mn. A discrepancy of this
ble cost figures for work in Inhambane Province scale would affect the company’s tax bill, since
in 2017 and 2018 by a total of nearly $100mn. Mozambique deducts recoverable costs from
In a statement, it stressed that the audit process total tax payments, STV explained. ™
was “ongoing.” It did not explicitly challenge the
ministry’s figures, but it did indicate that the par-
ties were exchanging information in an attempt
to clarify the matter.
“Preliminary reports were issued in order to
obtain initial feedback, and Sasol has submitted
additional information in order to explain its
contrary view of the preliminary findings,” the
statement said. “This information is still being
analysed by the auditing entity.”
Under the terms of Sasol’s production-shar-
ing agreement (PSA), it added, estimates of
recoverable costs must be audited by the INP
(National Petroleum Institute), Mozambique’s
oil and gas regulatory agency. “Once the audit is
complete, INP will disclose a full and complete
audit report,” it said.
Sasol also defended its position, saying that
it had been “an ethical corporate citizen.” It con-
tinued: “[We] are committed to continue devel-
oping Mozambican hydrocarbon resources
for the benefit of the country, its people and all
stakeholders.”
The South African country issued its state-
ment after the independent Mozambican tele-
vision channel STV reported that the 2019 CGE
audit showed that $50.5mn of the $148.7mn in Sasol’s assets in Mozambique (Image: Sasol)

Ethiopia reports fuel consumption

levels down because of pandemic

ETHIOPIA THE head of the Ethiopian Petroleum Supply of EPSE, Ethiopia is currently consuming about
Enterprise (EPSE) noted last week that domestic 2mn litres per day (lpd) of gasoline, 8.5mn lpd
petroleum product consumption had declined of diesel and 1mn lpd of jet fuel. Before the out-
significantly as a result of the coronavirus break, he told The Reporter, consumption levels
(COVID-19) pandemic. had averaged 2.2mn lpd for gasoline, 9mn lpd of
According to Tadesse Hailemariam, the CEO diesel and 2.6mn lpd of jet fuel.

Week 25 24•June•2020 www. NEWSBASE .com P13