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Sasol:providing integratedenergy solutions
Ebbie Haan: Managing Director, Sasol Petroleum International
Upstream Africa Conference, 31 October 2012
better together… we deliver
global trends and Sasol’s response
Issue
● De-linking of oil / gas price ratio creates a window for
Our response
● Acquired shale gas and accelerate GTLS l i d 50% f F ll C k d C Ag g p
GTL and other gas based projects • Sasol acquired 50% of Farrell Creek and Cypress A• GTL projects: Qatar, Nigeria, Uzbekistan, Canada, USA
● Leverage own chemical technologies• Ethylene tetramerisation
● World population increases by up to 50% by mid-century – increased demand for chemical products and food
Ethylene tetramerisation• Ethane Cracker• Integrated US chemicals• Fertilisers
● Pressure of carbon intensity● Focus is on low-or no-carbon electricity
• Sasolburg electricity generation• Mozambique electricity generation
2
Sasol – providing energy solutions throughour integrated value chain
Committed to excellence in all we doCommitted to excellence in all we do, Sasol is an international integrated energy and chemical company that leverages the talent and expertise of ourleverages the talent and expertise of our more than 34 000 people working in 38 countries. We develop and commercialise technologies, and build and operate world-scale facilities to produce a range of product streams, including liquid fuels, chemicals and electricity
While continuing to support our home-base of South Africa, Sasol is expanding , p ginternationally based on a unique value proposition, which links our diverse businesses into an integrated value
3
chain supported by top-class functions
our integrated business model
Crude oil – open market purchases
Fuelcomponents
Refining and blending
Co- Recovery and
Exploration and production of feedstock Marketing
GTL/CTL t h l Syngas Co
productsRecovery and beneficiation• Coal
• Natural gas• Oil
Marketingof products
technology (LT or HT)
Syngasproduction
Chemical feedstock
Chemical workup
Chemical feedstock – third party producers
4
New Energy New Energy
our global presence – where we operate
Northern Asia
Europe
North
Far EastAmerica
Southeast Asia
Middle East
A iRest of Africa
Australasia
Southern Africa
Asia
SouthAmerica Southern Africa
5
geographic split of profits and capital commitments
Operating profit by region Capital commitments by region
14%
1%2% 5%
4%
11%1%
1%
14%2%
77%82%
South Africa Rest of Africa
82%
Europe The AmericasSoutheast Asia and Australasia Middle East and IndiaFar East
6
our products
Our fuels, chemicals and related products benefit the lives of millions of people around the world. From hot-melt adhesives, car parts, chip coatings, printing inks, household and industrial paints, mobile phone circuit b d t t f l t di l lboards, transport fuels, to medical lasers, sun creams perfumes and plastic bottles. Our wide range of products are made in, primarily South Africa the United Statesprimarily, South Africa, the United States, Europe, the Middle East, and Asia.
7
making a positive contribution to the countriesin which we operate – South Africa
Fl hi j tFlagship projects● Sasolburg● Secunda
Value-add to South Africa● Industrial development● Social developmentp
8better together… we deliver
enabling industrial development
● Over 60 years ago, we pioneered the process of converting low-grade coal to produce liquid fuels, gas and chemicals
● Our mining operations serve as the critical foundation for the majority of our j yliquid fuels and chemical businesses in the country
● Today, we are recognised as a world leader oday, e a e ecog sed as a o d eadein Fischer Tropsch technology and as an international player in the energy and chemicals sectors
● One of the largest corporate taxpayers -contributing R28,2bn (~US$3bn) in FY12
● FY12 capex spend in South Africa● FY12 capex spend in South Africa increased by 14% to R18,8bn (~US$2bn) Invested R819m (US$95m) in skills development in South Africa in FY12
9
p
contributing to social and economic development
● Two towns established
Sasolburg: Population of over 140 000• Sasolburg: Population of over 140 000
• Secunda: over 200 000
● Committed R309m (US$36m)● Committed R309m (US$36m)to socio-economic development in South Africa in FY12
● Surpassed Mining Charter BEE● Surpassed Mining Charter BEE ownership thresholds set for 2014
● Proudly sponsored the 2012 South African Olympic 3 gold medals 2 silverAfrican Olympic – 3 gold medals, 2 silver medals and 1 bronze medal and Paralympic teams – 8 gold, 12 silver,9 bronze9 bronze
10
making a positive contribution to the countriesin which we operate - Mozambique
Flagship projects● Natural gas project
Value-add to Mozambique● Energy security● Energy security
and solutions● Economic and
social development
11better together… we deliver
our natural gas value chain
Mozambique South Africa
Royalty Pande
Central
GasPande
N t l
183 MGJ/a
Processing Facility
Sasol GasRompco PipelineRessano Garcia
Naturalgas fields
● 50% Sasol Gas● 25% iGas● 25% Companhia
TemanePPA● 70% Sasol Petroleum Temane● 25% Companhia Moçambicana
de Hidrocarbonetos S.A.5% I t ti l Fi
● 25% Companhia Moçambicana de Gasoduto
Sasol Sasol 3rd PartiesS l
● 5% International Finance Corporation
Sasol Secunda
Sasol Sasolburg
3rd Parties RSA
In development
SasolNew Energy 3rd Parties
12
delivery on our current assets
● US$307m CPF expansion project -● US$307m CPF expansion project -50% increase to 450 MMscf/d• Over 600 Mozambicans employed• US$64m spent on Mozambican• US$64m spent on Mozambican
suppliers• Domestic gas sales agreements
concluded for 25 MGJ/aconcluded for 25 MGJ/a
● Planned activities:• Additional PPA/PSA reserves
maturationmaturation• Developing/appraising Inhassoro oil
field and surrounding discoveriesContinued exploration• Continued exploration
• Pursue integrated monetisation opportunities: GTL/Chemicals and Power
13
Power
exploration focused on growing integrated value chain in the country
Year 0 Year 10Time (years) Year 6 Year 40
Milestones Drilling exploration well
Appraisalcampaign FID First gas Abandonment
Current assets will be polarised by end of 2014Partnerships
/farm-ins
16 / 19 AreaA
Sofala
NjikaA
M 10
Onshoreand offshore
PSA/ Inhassoro
and offshore bid rounds
14
Source: Statement of Asset Resources FY 2012 - SPI
exploration ongoing activities
● Area A• Completed airborne survey• Currently acquiring 2D seismic
● Mupeji – 1• Mupeji-1 is currently drilling
● Sofala• 3D seismic completed within budget and schedule• Received fast track 3D seismic cube for initial interpretation. Initial quality of seismic data
looks encouraginglooks encouraging
15
Mozambique Sofala 3D seismic acquisitionArea A Mupeji – 1 drilling
enabling energy security in Mozambique
● Initial royalty gas from CPF project stimulated growth on y y g j ggas based industry in Mozambique
● 27mGJ/a of the CPF expanded capacity to be sold to industries in Mozambique for power generation g
● ENH is contracted to purchase 6 MGJ/a for gas reticulation in the Maputo area
● In discussion for a 140 MW-capacity gas engine project
16
In discussion for a 140 MW capacity gas engine project in partnership with the power utility company
Sasol’s operation has become a catalystfor social development
● US$13m spent on social projects
● Plans in place to have 85% pMozambican operational staff by 2015 (currently 60%)
● Announced bursaries for Mozambican nationals
● Working on increasing circle of beneficiaries beyond ycommunities close to the CPF and the pipeline
● Close dialogue with local gcommunity helps withneeds-driven CSR projects
17
making a positive contribution to the countriesin which we operate - Qatar
Flagship projects● ORYX GTL
Value-add to Qatar● Diversified gas production ● Access to lucrative global
transport markets● More versatile and
balanced production portfolio than any otherportfolio than any other gas producer in the world
18better together… we deliver
assisted Qatar in achieving its vision to be a gas capital of the world
● Constructed world’s first commercial-scale GTLConstructed world s first commercial scale GTL plant outside South Africa - developed at a cost of US$1bn
● Diversified gas production into GTL andDiversified gas production into GTL and accessed the lucrative global transport markets
● GTL technology has enabled Qatar to benefit from a more versatile and balanced productionfrom a more versatile and balanced production portfolio than any other gas producer in the world
● ORYX GTL plant continues to achieve new production records and is consistently producing p oduct o eco ds a d s co s ste t y p oduc gabove its design capacity of 32 400bpd
19
making a positive contribution to the countriesin which we operate – North America
Flagship projects● Shale gas acquisition Shale gas acquisition
in Canada● Lake Charles complex
Value-add to North AmericaValue add to North America● Unlock natural gas resources● Stimulate to local economy● In-country energy solutions
20better together… we deliver
a new natural gas outlook for North America
800
tcf)
600
700
as v
olum
e (
Shale gas has added70 to 100 years resource life
400
500Ga y
based on current US production
200
300
0
100
ille lus
ney
ver
ord
ley
ord
nett
ash
nah
sier ille tes
nce
sier
ash
Hay
nesv
Mar
cell
Mon
tn
Hor
n R
iv
Eagl
e Fo
Cot
ton
Vall
Woo
dfo
Barn
Gra
nite
Wa
Jon
Dee
p B
oss
Faye
ttev
Nat
ural
But
t
Pic
ean
Boss
Col
ony
Wa
21
Source: IHS CERA 2010
gas market dynamics support US strategy
● Shale gas boom presents unique opportunity
80
100
bcf/d
US gas production¹
● Gas production to increase ~40%by 2030
● Expect ~60% increase in associated 20
40
60
80b
Expect 60% increase in associated liquids production
● Sasol able to benefit from both developments
0
20
2000 2005 2010 2015 2020 2025 2030
US t l li id d ti ¹developments
• GTL benefits from increased gas volumes at discount to equivalent il i
3000
4000
kbbl
/d
US natural gas liquid production¹
oil price
• chemicals benefits from availabilityof advantaged ethane feedstock 0
1000
2000
2000 2005 2010 2015 2020 2025 2030Ethane Propane Butane Natural Gasoline
1. Lower 48 states of the United States (excluding Alaska and Hawaii)
22
Sasol shale gas and GTL project in Canada
M t t hi● Montney partnershipFarrell Creek and Cypress A
● One of the most prolific shale plays in North America
● All year access and excellent infrastructure
23
Source: Talisman 2011
USA GTL - a first of a kind in North America -a value adding option to unlock natural gas resources
● Sasol commenced with feasibility study to evaluate viability of GTL plant in Southwest Louisiana
● Unlocking abundant natural gas resources and contributing to local economy with affordable, reliable and high quality fuel supply
● Early in 2011, Sasol also commenced studies on ethylene cracker and derivatives project
● Location is Sasol’s existing Lake Charles Chemical Complex● Currently world’s first commercial ethylene tetramerisation unit
24
under construction at same site
making a positive contribution to the countriesin which we operate – Botswana
Flagship projects● Coal Bed Methane
Possible value-add to Botswana● Power generation● Stimulate local
economy
25better together… we deliver
pioneering coal bed methane in Botswana
● As part of our overall drive to diversify the feedstock for our p yeconomic growth in the SADC region we are pursuing a wide range of natural gas opportunities – both conventional and unconventional
● 2011 – establishment of the Kubu Joint Venture in partnership with p pOrigin Energy• Kubu’s purpose: to explore for Coal Bed Methane (CBM) • Kubu owns three prospecting licences covering an area of p p g g
approximately 3 000km² and are located in the Central province of Botswana
• Kubu will explore in the licence area to determine the quantityp q yof natural gas available and the feasibility for future commercial development
● If exploration is successful, the gas could be used for large scale electricity generation or liquid fuels production
● Gas could also be routed directly to industrial and domestic users via pipeline
26
Our compelling investment proposition
Solid Attractive Leading
● ORYX GTL flagship
on
foundation business
● Growing demand for energy security and
growth strategy
● Solid balance sheet underpins growth
gshareholder returns
● Highly cash generative assets
● Continuously improving lue
crea
tio
energy security and energy independence
● Ability to monetise hydrocarbon resources
underpins growth
● Progressive dividend policy
y p gexisting businesses
● Proven alternative energy experience in ai
nabl
e va
l hydrocarbon resources
● Strong project pipeline including US GTL and ethane cracker
● Leading long-term share price performance
e e gy e pe e ceSouth Africa and abroad
Sust
a ethane cracker
● Capitalise on low feedstock prices
By taking big ideas that seem impossible, to large-scale commercial reality,
27
we unlock the value of natural resources to build economic and social capital
Sasol:providing integratedenergy solutions Ebbie Haan: Managing Director,Sasol Petroleum International
better together… we deliver