Sasol Limited · JSE:SOL
Sasol — Investec African Oil & Gas Conference 2015
26 slides from Sasol's conference presentation, October 2015
Slide 1: Maintaining Momentum
MAINTAINING MOMENTUM INVESTEC AFRICAN OIL & GAS CONFERENCE OCTOBER 2015 JSE: SOL NYSE: SSL
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 and see today
What you will hear and see today Overview of Sasol and Sasol Exploration and Production International (SEPI) footprint and operations Our other areas of focus in the African continent The journey we undertook in Mozambique and what we still plan to achieve Why we believe we can partner sustainably t
Slide 4: Sasol at a glance
Sasol at a glance Balanced portfolio ● An international integrated chemicals and energy company ● Produces a range of high value 1% 1% product streams: liquid fuels, Mining 37% chemicals and low-carbon 41% Exploration & Production Int'l (EPI) electricity Energy ● Major facilities in South Africa, Mo
Slide 5: SEPI is an upstream business unit of the Sasol Group
SEPI is an upstream business unit of the Sasol Group with equity production positions in Mozambique, Gabon and Canada and exploration/appraisal assets in Mozambique, Canada, South Africa and Australia London Canada Gabon Australia Mozambique Production and Exploration South Africa Offices Maintainin
Slide 6: Daily boe production forecast
SEPI equity production averaged 69 800 boe/day in financial year 2015 Anticipates significant growth from existing assets 80,0 70,0 Daily boe production forecast 60,0 50,0 40,0 30,0 20,0 10,0 0,0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Mozambique Canada Gabon … with additional production coming onstream
Slide 7: Sasol's upstream footprint in Canada - a world scale resource
Sasol’s upstream footprint in Canada - a world scale resource History in Canada Fort St., John • In 2011, Sasol acquired a 50% stake in the Farrell Creek and Cypress A shale gas assets and the associated gas-gathering systems and processing facility of Talisman Energy in the Montney Basin in British
Slide 8: Sasol Canada upstream development plans
Sasol Canada upstream development plans Sasol near-term development goals • The Montney appraisal phase will: - Confirm the amount of hydrocarbons present in the subsurface - Optimise wells spacing, locations and completion design - Drive down drilling and lifting costs • Following appraisal, the pa
Slide 9: SEPI areas of interest in Africa
SEPI areas of interest in Africa Mozambique N Indian Ocean PSA(N) Blocks Gabon PPA(N) 16 & 19 N Inhassoro PPA(S) CPF Area A Area A PSA(S) Vilanculos Etame Indian Ocean Marin Congo Atlantic Ocean South N Africa Mozambique South Africa TCP Swaziland 3A/4A Atlantic Ocean ER236 Indian Ocean Maintaining
Slide 10: A success story in Gabon - a growth model we aim to replicate
A success story in Gabon - a growth model we aim to replicate Sasol has a 30% paying interest and a 27,75% economic interest - the principal JV partners include VAALCO (Operator) at 28,07% and Addax at 31,36% economic interest. Etame Field Avouma Field Ebouri Field EEP & SEENT Original Gabon Forecas
Slide 11: Gabon Etame Marin Permit oilfield cluster
Gabon Etame Marin Permit oilfield cluster recent EEP and SEENT projects consisted of installation of new wellhead platforms • Gabon remains strategically important Ebouri Ebouri Field to Sasol - known sub- surface, oil, lean operator, focus area (West Africa) Etame Main Etame Block • The partners ar
Slide 12: South African exploration asset overview
South African exploration asset overview ER 236 Offshore Durban (KwaZulu-Natal) • November 2013: Granted exploration right (ER) 236 to explore for hydrocarbons along South Africa’s East Coast • ER 236: 82 000 km2, depths ranging from 50 to 3 200 metres • April 2014: completion of 5 950km of 2D recon
Slide 13: Our key focus in Africa is Mozambique...
Our key focus in Africa is Mozambique... A country growing rapidly from a low base... Sasol’s initial natural gas project became operational • Mozambique has experienced continued growth post the civil war due to a relatively stable political and economic environment • Between 1980 and 2015: Mozambi
Slide 14: Entry into the country was precipitated by Mozambique's needs and Sasol's value offering
Entry into the country was precipitated by a combination of Mozambique’s needs and Sasol’s value offering What Mozambique wanted What Sasol offered • Monetisation of a potentially • Base load markets in South Africa valuable resource that had that were large enough to make remained stranded for >40
Slide 15: Sasol pioneered gas monetisation in Southern Africa
Sasol pioneered gas monetisation in Southern Africa Total investments in Mozambique US$ millions 300 Developed stranded gas fields in Mozambique Contributed to the creation of a favourable and safe investment climate and the establishment of the Exploration and Production sector in the country 200 P
Slide 16: Sasol's growth in Mozambique has been based on strategic partnerships
Sasol’s growth in Mozambique has been based on strategic partnerships • Partners in the Central Processing Facility (CPF): Sasol 70% (Operator), CMH 25%, IFC 5% • Equity in pipeline company (ROMPCO): Sasol Gas 50% (Operator), CMG (25%), iGAS (25%) • CTRG – joint venture for power generation at Ressa
Slide 17: Sasol provided an anchor offtake to facilitate development of gas fields in Mozambique
Sasol provided an anchor offtake to facilitate the development of gas fields in Mozambique Mozambique >300% Growth SouthAdapt Africa ENH consumption illustration PPA Royalty gas to Maputo ENH: Vilanculos reticulation 2015: from 6 MGJ/a Nompilo’s Sasol Pande Secunda Royalty 2004: slides gas <1MGJ/a N
Slide 18: Ongoing investment has enabled growth in both Mozambican and South African gas markets
Ongoing investment has enabled growth in both Mozambican and South African gas markets • First permanent gas- Royalty gas to-power plant in Central Mozambique To date, gas taken in kind Térmica • Joint venture with has grown by 36% Ressano Electricidade de (compound annual growth Garcia Moçambique (
Slide 19: The next development phase: the Field Development Plan for the PSA
The next development phase: the Field Development Plan (FDP) for the PSA envisages an integrated oil, LPG and gas development The Production Sharing Agreement (PSA) licence is adjacent to the current producing Petroleum Production Agreement (PPA) area: separated from the initial commercial discoveri
Slide 20: PSA project
PSA project PSA development PSA Phase 1 PSA Phase 2 (NCD reservoirs) (CAP reservoirs) PSA Phase 1 PSA Phase 1 Tranche 1 Tranche 2 Phase 1 development Facilities Wells Tranche 1 Tranche 2 Tranche 1 Tranche 2 Total wells Firm Contingent Firm Contingent (best estimate case) 22 new wells 2 x 7500 bbl/d
Slide 21: Mozambique's growth to date
Mozambique’s growth to date Mozambican GDP grew strongly in the period 2000 – 2015: average of 6.37% per annum GDP in 2015 (US$15,1bln) High growth in period 2000-2004 on the back of foreign direct investment (FDI) – e.g. PPA and Y-o-Y GDP growth (at constant currency) and GDP (LHS) Other Mozal (Moz
Slide 22: PSA project upside potential for Mozambique
PSA project upside potential for Mozambique Supports new governments drivers for in-country monetisation, skills development and further industrialisation in addition to addressing energy security Oil development LPG development Gas monetisation in country Oil development Oil development which will
Slide 23: Facilitating shared value in Mozambique
Facilitating shared value in Mozambique • Targeted skills development of Mozambican nationals to sustain the oil and gas industry at various levels: bursary and learnership programmes, training centre, university collaboration • Local content policy stipulates local ownership, but also local employm
Slide 24: Future growth Oil and Gas opportunities in Mozambique
Future growth Oil and Gas opportunities in Mozambique 5th Licensing Round - Sasol applied for 3 licence areas (on- and off- shore) Block A5A: Block A5B: Applications for the 5th Licensing Round 1. Exxon, Rosneft, 1. Exxon, Rosneft, closed on 30 July 2015: ENH ENH • Sasol have made applications for:
Slide 25: Sasol seeks to partner with other companies particularly in Africa
Sasol seeks to partner with other companies particularly in Africa to expand into new areas Sasol value proposition Examples • Integrated gas value chain capability including: Central Térmica Ressano Garcia (CTRG) - Gas-to-liquids Gas to power plant built in Ressano - Gas-to-chemicals ; and Garcia,
Slide 26: Questions and Answers
MAINTAINING MOMENTUM QUESTIONS AND ANSWERS OCTOBER 2015 JSE: SOL NYSE: SSL