South Africa’s integrated energy and chemical company Sasol said on Monday that it has sold its stake in Ressano Garcia Thermal Power Plant (CTRG) to Nigeria’s Azura Power for about US$145 million.“Sasol is pleased to announce that a Sale Securities Purchase Agreement has been signed with Azura Power Limited for the divestment of the Company’s full shareholding in CTRG, the gas-to-power plant located in Ressano Garcia, Mozambique,” Sasol said in a statement.
The transaction is subject to a number of conditions being met, including regulatory approval and the waiver of pre-emption rights held by Mozambican state-owned electricity company Electricidade de Mocambique (EDM).
CTRG, a 175-megawatt gas-to-power plant commissioned in 2015, is owned 51 percent by EDM and 49 percent by Sasol.
The transaction is part of “the company’s ongoing, strategy aligned, asset divestment programme,” Sasol said.
The South African company, however, said it remained “fully committed to upstream operations in Mozambique,” where it is part of a consortium of foreign investors involved in gas exploration.