South African Petrochemicals firm, SASOL, has given up its search for gas in the Mozambique coast.
The company said on Sunday that it will return Block 16/19 entirely to the government of Mozambique.
A withdrawal notice will also be sent to relevant agencies in Mozambique to inform them of the development.
SASOL is currently in huge debts, disposing some assets to pay off the stockpile of such liabilities.
SASOLl was awarded the licence in 2005.