| Operational review (continued) Pages | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | |
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| International energy cluster |
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| Business segment contributions to international energy cluster |
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| International energy cluster financial highlights |
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2007 |
2006 |
%
change |
| Turnover |
Rm |
1 465 |
1 398 |
5 |
| Operating loss |
Rm |
(463) |
(42) |
1 002 |
| Effect of capital items |
Rm |
– |
(82) |
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| Exploration expenditure |
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(526) |
(123) |
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| Contribution to: |
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| group operating profit |
% |
(2) |
0 |
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| group profit |
Rm |
(726) |
(119) |
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| Cash flow from operations |
Rm |
1 094 |
1 476 |
(26) |
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| International energy cluster operational highlights |
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Oryx was commissioned earlier in the year. |
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Progress made in developing Nigeria’s first GTL facility. |
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Project office opened in India to investigate CTL opportunities. |
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Natural gas sales from the Temane field up to 98 M GJ from 94 M GJ. |
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Condensate sales up by 28%. |
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| “We remain confident that Sasol’s experience in transforming the energy
landscape in South Africa can be replicated in other parts of the world.” |
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 Sasol’s strategy to expand our international energy business – based
on our proprietary technology, our experience in managing and
operating large-scale integrated projects and plants, and our skills
base – remains a key driver of growth.
In an energy-hungry world where security of supply is becoming
more critical, Sasol Synfuels International (SSI) and Sasol Chevron,
our joint-venture company with Chevron, are helping a number of
countries to add value to their natural resources and enhance their
security of energy supply through plans to develop alternative,
cleaner fuels from natural gas and coal. Working in parallel, Sasol
Petroleum International (SPI) is advancing its exploration drive to
enhance the group’s upstream gas and oil resources.
During the year SPI raised gas output and made good progress in
securing the additional gas resources from Mozambique needed for
Sasol Synfuels to increase its liquid fuels output in South Africa by
a fifth, within a decade.
SSI brought Oryx, the world’s largest commercial gas-to-liquids
(GTL) plant outside South Africa, on stream in Qatar and is
collaborating closely with Sasol Technology to optimise this facility
to raise current throughput. Sasol Chevron reported progress in
developing Nigeria’s first GTL facility, Escravos GTL, and is in talks
with other countries interested in developing their gas reserves
through similar projects.
SSI continued to receive enquiries from countries interested in
making their coal assets productive through our coal-to-liquids
(CTL) offering. We have increased our staff numbers in China and
established a project office in India. Along with the USA – where we
are also exploring options and doing pre-feasibility work – these
countries are amongst the world’s largest oil importers with some
of the largest coal reserves.
Since our international energy initiative first took root a decade ago,
the environment in which we operate has changed dramatically.
Oil prices are trading near record highs. At the same time the
number of capital projects has ballooned, putting pressure on
available skills and increasing the cost of these projects.
In spite of these developments, our strategy is intact. We recognise
the benefit of securing our own upstream hydrocarbon resources.
We believe in the future of CTL and GTL and our ability to set up
and manage these large-scale integrated projects successfully.
We remain confident that Sasol’s experience in transforming the
energy landscape in South Africa can be replicated in other parts
of the world.
Lean Strauss, group general manager,
international energy cluster. |
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