Sasol's Mozambique exploration shows signs of gas

JOHANNESBURG, Nov 20 (Reuters) - Sasol (SOLJ.J) said on Thursday the first gas exploration at its joint venture Njika-1 well in Mozambique had shown the presence of gas, but it was not clear if the project would be commercially viable.

South Africa's Sasol, the world's biggest maker of diesel from coal, said drilling of Njika-1 started on 1 October 2008 and was conducted by Sasol's unit Sasol Petroleum Sofala.

"We will only be able to determine commerciality after extended testing and further appraisal work is done," Lean Strauss, Sasol's General Manager said.

The Njika-1 project is 50 percent owned by Sasol, while Malaysia's Petronas owns 35 percent and the Mozambique government holds 15 percent through national oil company Empresa Nacional De Hidrocarbonetos De Mozambique.

Sasol said it is planning a second well in the same license area immediately after completion of Njika-1. (Reporting by Muchena Zigomo)