Sasol Limited · JSE:SOL
Sasol — 21st Africa Oil Week Conference (2014)
27 slides from Sasol's conference presentation, 2014
Slide 1: Investing in Africa's Success: Expanding Our African Footprint
INVESTING IN AFRICA’S SUCCESS: EXPANDING OUR AFRICAN FOOTPRINT
Slide 2: Forward-looking statements
Forward-looking statements Forward-looking statements: Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may al
Slide 3: What you will hear today…
What you will hear today… • Africa has become a key focus for the global E &P industry • Sasol has a long- established home base in South Africa • A significant position in Southern Africa and an emerging presence in West Africa • Sasol is well positioned to leverage Africa’s opportunities Sasol Eth
Slide 4: Africa's growing resource base
Africa’s growing resource base Nine of the 17 largest gas discoveries in the last five Established gas production New gas finds years were in Sub-Saharan Gas ambition 1.5 2.2 Africa, thereby potentially Shale gas potential Algeria Libya Egypt leading to: 4.5 • Transformation of the region’s Sudan ec
Slide 5: FDI creates significant investment opportunities
Creates significant investment opportunities The continent grew on average 5.5% a year over the past decade and GDP is expected to rise by an average of 6% in the next year, with foreign direct investment (FDI) increasing US$46 billion in 2012 US$37 billion FDI: in 2006 US$15 billion in 2002 A new e
Slide 6: The key drivers for unlocking growth are in place
The key drivers for unlocking growth are in place Opportunities • Collective efforts from industry and governments to develop skilled workers Challenges to sustain the market • Regional integration is • Infrastructure not yet on providing much needed par with development infrastructure pace • Local
Slide 7: We are a global company with African roots
We are a global company with African roots Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of our more than 33 000 people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities to prod
Slide 8: Our footprint in Africa
Our footprint in Africa Sasol’s capital investments by region for 2014 Total US$ 438 million A new era for Sasol 8
Slide 9: South Africa is the cornerstone of our global operations
South Africa is the cornerstone of our global operations Throughout, our 64 year history, Sasol has played an important role in both South Africa’s and the broader region’s industrialisation, growth and socio-economic development Downstream: 25% 3,5 million 1 000 megawatts of South Africa’s tons of
Slide 10: Stimulated broader contributions to South Africa
Stimulated broader contributions to South Africa We make ongoing investments: 2014: US$2.1 billion in capital expenditure; • We are a top contributor to the national fiscus: 2014: US$3.2 billion in direct and indirect taxes; US$8.6 billion over the last 3 years • We enable skills and socio- economic
Slide 11: Actively pursuing upstream opportunities in South Africa and the region
Actively pursuing upstream opportunities in South Africa and the region • Southern Africa, like most other emerging markets, is entering the most energy intensive phase of its economic development. • To support the region’s energy requirements, we are actively pursuing new hydrocarbon resources, wit
Slide 12: Extending our investments into Mozambique, our heartland
Extending our investments into Mozambique, our heartland • Developed stranded gas fields through strong partnerships and technological expertise • Contributed to creation of favourable and safe investment climate and established Exploration and Production sector in the country • Gas development with
Slide 13: Continuing to grow our existing operations
Continuing to grow our existing operations Investing in growing capacity beyond Low and high pressure compression, 197 MGJ/a on our 183 MGJ/a current and electrical expansion projects capacity. aimed at enhancing reservoir Looking for opportunities for additional deliverability production from our e
Slide 14: ROMPCO – an enabling partnership
ROMPCO – an enabling partnership Equity in pipeline company (ROMPCO): Sasol Gas 50% (Operator), CMG (25%), iGAS (25%) US$140m ROMPCO compressor on pipeline completed in 2010 Further capital projects to enhance reservoir deliverability Over $200 million Loopline investment to increase pipeline capaci
Slide 15: Enabling regional markets
Enabling regional markets Central Termica Ressano Royalty gas Sasol Gas Engine Power Plant Garcia (CTRG) Gas Engine Power Plant 5% gas royalty entitlement analysis - GJ FY14 3.8 4.5 FY13 3.5 3.9 FY12 3.8 2.6 FY11 3.4 2.9 FY10 3.2 2.1 FY09 2.9 2.4 FY08 1.8 3.6 FY07 1.4 3.5 FY06 1.3 3.4 FY05 3.5 Natur
Slide 16: Diversifying energy sources, enabling access to clean energy
Diversifying energy sources Enabling access to clean energy Sasol and its partners are developing 20 000 tpa LPG facility which will: • Improve balance of payments • Reduce LPG imports Household using natural gas for cooking • Stimulate growth amongst distributors Gas reticulation systems and retail
Slide 17: Advancing in-country gas monetisation: Mozambique basin PSA opportunities
Advancing in-country gas monetisation: Mozambique basin: PSA opportunities 34°30'0"E 34°45'0"E 35°0'0"E 35°15'0"E 35°30'0"E ! ! ! Pipelines N Roads Pande G-10 Towns_CPF The PSA licence is adjacent to 21°15'0"S PSA 21°15'0"S PPA the current producing PPA area: − Separated from the initial ! Pande Mai
Slide 18: We have proven, global expertise in monetisation
We have proven, global expertise in monetisation Canada GTL ~48,000 bbl/d Uzbekistan GTL Feasibility Phase ~38,000 bbl/d FEED phase ORYX GTL ~32,400 bbl/d Consistently operating above Lake Charles GTL design capacity since 2007 ~96,000 bbl/d Mozambique: Conducting a FEED phase pre-feasibility study
Slide 19: Ongoing exploration
Ongoing exploration • Area A: entered Second Licence Period to drill Grudja amplitude supported anomaly in a relatively unexplored part of the Mozambique basin • Concluding a farm out of 40% interest • Looking at upcoming bid round blocks with interest Grudja G-6 A new era for Sasol 19
Slide 20: Driving targeted skills development in Mozambique
Driving targeted skills development in Mozambique Over the next five years we forecast spend of over US$12,4 million for: Bursary Sasol’s Leveraging programme, learnership Sasol’s university in programme is collaboration Programme partnership Designed fast tracking the approach to started in with MI
Slide 21: Enhancing our employee value proposition in Mozambique
Enhancing our employee value proposition in Mozambique Housing project 97 Employee houses, with Local content procurement: Employee Value Proposition supporting infrastructure Only companies registered (EVP) • Management buildings in Mozambique were eligible Onsite clinic: • Access and internal road
Slide 22: Driving local development in Mozambique to promote industry growth
Driving local development in Mozambique to promote industry growth • Local content policy stipulates local ownership, but also local employment and purchase of local materials • Preferential procurement: giving preference to Mozambican businesses wherever possible without compromising on safety and
Slide 23: Sustaining oil production in Gabon
Sustaining oil production in Gabon Oil production underpins Gabon’s economy, accounting for 65% of government revenue and 75% of export revenue 27,75% economic interest in the offshore One of the oil platforms Etame Marin Permit operated by VAALCO Energy Gross oil production of sweet crude oil of ab
Slide 24: Maintaining and boosting production in the region
Maintaining and boosting production in the region Further growth opportunities are being evaluated and preliminary results to date appear encouraging Avouma, Etame and Ebouri fields source: Gamba Sandstone, an excellent quality reservoir Value add opportunities are currently being sandstone yielding
Slide 25: Sasol's GTL technology contributing to a key government driver in Nigeria
Sasol’s GTL technology - contributing to a key government driver in Nigeria Escravos Gas-to-liquids (EGTL) project achieved Beneficial Operation in June 2014 Escravos GTL, Nigeria A Nigerian National Petroleum Corporation and Chevron Nigeria Limited project utilising Sasol’s GTL technology in which
Slide 26: Sasol Exploration and Production's growth
Sasol Exploration and Production’s growth SEPI production profile 200 Equity production (000 boe/d) 150 100 London 50 Canada 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Canada gas Mozambique gas - PPA/PSA Liquids (Mozambique, West Africa
Slide 27: Africa rising is a reality
Africa rising is a reality Secunda integrated facility Stimulating mutual growth Investing in Africa’s Expanding our footprint success in Africa ● Ever expanding resource ● Sasol has built a replicable base, underpinned by integrated business in South Africa sound investments and we are growing our