changing gear - sasol · partnership with major australian coal bed methane player: origin energy...
TRANSCRIPT
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changing gear
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forward-looking statements
Contingent resources are defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from a known accumulation by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is therefore uncertainty as to the portion of the volumes identified as contingent resources that will be commercially producible. 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 ofamounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return and cost reductions. Words such as “believe”, “anticipate”, “expect”, “intend”, “seek”, “will”, “plan”, “could”, “may”, “endeavour” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risksthat the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report under the Securities Exchange Act of 1934 on Form 20-F filed on 7 October 2011 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
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contents
Sasol – an integrated energy company
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
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sasol at a glance
● Sasol is an integrated energy and chemicals company
● The world’s largest producer of synthetic fuels
● World leader in gas-to-liquids (GTL) and coal-to-liquids (CTL) technology
● >60 years’ experience in CTL, GTL and related technology
● Operating and technical expertise
● Strong intellectual property portfolio(372 registered patent families)
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Operations excellence
Functional excellence
Planning & optimisation
Sales & marketing excellence
sasol group strategyAccelerate GTL and grow related upstream business
Capital excellence
Values-driven leadership*
Gro
up
impe
rativ
es
Foundation
Develop and empower our people
Continuously improve and grow our existing
asset base
Deliver on the RSA transformation
agenda
Sustainable growth
Accelerate GTL, focused CTL growth
Grow related upstream business
Grow technological lead
Grow chemicals based on feedstock and/or
technology advantage
Develop and grow new energy
Definition of victory
Grow stakeholder value sustainably
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contents
Sasol – an integrated energy company
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
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Oil/gas price differential maintained
• de-link of oil /gas price ratio creates a window for GTL and other gas based projects
• opportunity to acquire further shale gas
Some pertinent global trends
Pressure on carbon intensity
Sasol recently acquired 50% of Farrell Creek and Cypress A
• focus is on low- or no-carbon electricity• accelerated exploration in Southern Cone of Africa – Mozambique, Botswana
Sasol New Energy will be developing options and new technologies for Sasol in
a carbon and water constrained world
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contents
Sasol – an integrated company
Pertinent global market rends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
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sasol’s response to global market trendsORYX GTL, Sasol’s GTL flagship
In operation and highly successful
● Joint venture between Qatar Petroleum (51%) and Sasol (49%)
● 32 400 bbl/d design capacity, producing ultra-low sulphur diesel, naphtha and LPG
● Stable operation (80-90% capacity utilisation)
● Instantaneous production record of 36 860 bbl/d achieved
● Production to be increased by 10% through de-bottlenecking
● Investigating the possibility of an expansion
9Highly profitable venture with handsome returns to shareholders
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● Uzbekneftegaz, Sasol and PETRONAS established a joint venture – December 2009
● Project has moved into FEED stage
● Targeting nominal plant capacity of
1.4 million tons per annum
● Product slate target – GTL diesel,
GTL kerosene and GTL naphtha
● The plant will be located near the town of Karshi in the southern part of Uzbekistan
● Gas feedstock from adjacent ShurtanGas Chemical Complex
sasol’s response to global market trendsUzbekistan GTL, Karshi, Uzbekistan
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sasol’s response to global market trendsSasol New Energy: exploring new energy options and technologies
● Electricity generated from two100 MW open-cycle gas turbines at Sasol Synfuels, Secunda , being sold to Eskom (commissioned 2010)
● New R1,8bn Sasolburg power project (140MW) in execution – operational in 2013
● Increases self generated power capacity to 60% by 2013
● Reduces CO₂ emissions by ~1Mt/a● Progressing on a gas-to-power
opportunity in Mozambique● Other renewable energy and low-
carbon electricity initiatives, including concentrated solar power and biofuelsunder investigation
Implement and drive a group-wide CO₂ mitigation programme
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contents
Sasol – an integrated energy company
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
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SPI’s contribution to sasol’s gas needsUpstream asset portfolio
Gas licences
Nigeria
Oil licences
Australia
Canada
South Africa
Papua New Guinea
Current SPI position
GabonMozambique
Botswana
Shale gas/coal bed methane licencesTechnical Cooperation (study) Permit (TCPs)
• 8 countries: 3 operated (Botswana, Mozambique and PNG) and 5 non-operated• Acreage Net Area (excl TCPs): 54 407km² (onshore, offshore, shale gas and CBM)• 3 producing: gas (Canada and Mozambique) and oil (Gabon)
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SPI’s contribution to sasol’s gas needsChanging gear
1995 – 2004• First engagement
with Mozambique• Gabon production
2007 – 2011• Growth beyond Africa• Gas centric upstream
strategy• Unconventional
exploration venture• Canada Acquisition
Beyond 2011• Massive production
growth (45 kboe/d to 270 kboe/d)
• Significant organisational growth
• Acceleration of global exploration
• More acquisitions
2004 – 2007• Mozambique
production• Growth into Nigeria
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SPI – producing assetsPande, Temane and Inhassoro Complex
● Equity Sasol 70% (Operator), CMH 25%, IFC 5%
● Temane on stream 2004
● Pande on stream July 2009 producing 230 MMscf/d, with Temane providing swing
● Currently produces ~300 MMscf/d
● US$300 million expansion 98% complete for 50% increase to 450 MMscf/d
● Inhassoro oil appraisal ongoing with option for LPG project development in the success case
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● Over two-million man hours worked on this project. RCR of 0.46 was achieved
● The project employed over 600 Mozambicans – significant job creation for the area
● Substantial amounts of money spent with Mozambican suppliers - good economic impact for the region and country as a whole
● Keep close dialogue alive with local community and carry out discrete and needs-driven social and medical projects
● To top it all, a saving of 30% on approved project capital was achieved
SPI – producing assetsFast facts on the central processing facility expansion project
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SPI – appraisal activitiesInhassoro-9z drilling and testing
● 500m horizontal section drilled successfully (first in Mozambique)
● Well drilled within a vertical window of 80cm in the horizontal section
● Well test produced rates of up to 2500stb/d
● Light oil produced (58 API, 500 – 700 scf/stb)
● Entire length of horizontal well contributed to flow proving that an excellent drilling and completion methodology was used
● EWT planned to determine sustainability of oil flow and optimum development plan for field and also finalise design of LPG plant
Oil Flare During Test
Well lifted onto production with nitrogen
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SPI – exploration: conventionalMozambique offshore opportunities
● Evaluation efforts now looking beyond the proven Grudja Play (Njika, Pande etc)
● ‘Going Deep’ 3 new plays with significant upside in largely non-penetrated stratigraphy
› Aptian Syn/Post Rift structural plays
› Albian Carbonate platform play
› Karoo Pre/Syn Rift structural play
● 3D seismic planned for mid-2012 to mature Aptian Syn/Post Rift play in Sofala
● Exploration well to test Albian Carbonate play scheduled for Q3 2012 in M10
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SPI – exploration: conventionalMozambique – Offshore play diagram
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SPI – exploration: conventionalMozambique – Mupeji Aptian Platform carbonate prospect
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SPI – exploration: conventionalMozambique – Aptian Syn/Post Rift play in Sofala
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SPI – exploration: conventionalOffshore South Africa –TCP 032, Durban and Zululand Basins
● Technical cooperation permit (TCP032) granted in September 2011 for 12 months
● Area: 83 000 km²
● Initial study to evaluate whether area is suitable for exploration right permit applications
● Sasol (100% equity) has exclusive rights to apply for an Exploration Right permit within 12 months
● Sasol may consider partnering for next phase
Existing west – east seismic line in the Durban Basin
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SPI – exploration : non-conventionalCBM Botswana
● SPI recently announced its Joint Venture partnership with major Australian Coal Bed Methane player: Origin Energy
› Kubu Energy Resources (Pty) Ltd
● Acquisition of three CBM licenses in Botswana
› Covering approximately 3 000km²
› Located in the Central Province of Botswana
› Subject to final approval by the Botswana Government
● Exploration activities will include
› Core sampling from multiple boreholes
› Airborne magnetic survey
› 5-well (‘5-spot’) pilot
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contents
Sasol – an integrated energy company
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
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SPI – major acquisitionsCanada – shale gas
● Sasol recently acquired 50% of Farrell Creek and Cypress A
● One of the most prolific shale plays in North America
● All year access and excellent infrastructure
● Sasol/Talisman partnership on 108 000 total net acres land – circa 20 tcf of contingent resource
● Sasol paid US$2bn for a 50% interest and will incur ~ US$14bn development cost over 10 years
● Emerging liquids window
Alberta
BritishColombia
TLM land
BasinMajor pipeline
Sasol/TLM land
The feasibility study of a 96 000 bbl/d facility in Canada has commenced
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contents
Sasol – an integrated energy company
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
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SPI – outlook on growth…creating a geographically balanced growth portfolio will require us to focus on emerging markets and outside current countries of operation…
North America• Progressive optimisation• Sustainable operation• Significant cash
contribution for growth elsewhere
Australia• Deliver on Australia
strategy
GabonMaintain full asset production
Southern Africa•Botswana CBM•Moz expansion•TCP offshore Zululand Basin
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SPI – outlook on growthConsolidated production volumes (liquids and gas) equity share, risked
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/d
Gabon oil production Total condensate productionMozambique gas production Farrell Creek gas productionCypress gas production Range of Exploration OutcomesUpper Range of Exploration Outcomes 2021 SPI target (270 000 Boe/d)
2021 SPI target (270 000 Boe/d)
Hard production
Canada projection(Farrell Creek + Cypress A)
Risked growth
Upside
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● Young, but well established upstream player
● Solid production growth track record
● Rapidly expanding global portfolio
● Access to proprietary GTL/CTL technologies and capabilities
● Unique and competitive value proposition with customised “product slates” for local markets
SPI – outlook on growth The licence and capability to grow
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SPI – outlook on growth Looking ahead…
● Continue to grow our heartland in Mozambique and our new position in North America
● Replicate our Mozambique success in other emerging heartlands
● Intensify exploration and new business development activities in both conventional and unconventional (continued globalisation of upstream portfolio)
● Strategic partnerships (both operated and non operated)
● With continuous focus on safety, health and environment,
● Create sustainable relations with community stakeholders
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changing gear
Thank you