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| The gas-to-liquids (GTL) and coal-to-liquids (CTL) programmes were
launched in 1997 with the formation of Sasol Synfuels International
(SSI). Operations began in 2007 at our Oryx GTL joint venture with
Qatar Petroleum, with design levels of production capacity achieved.
SSI cares for its people and believes in a zero-harm culture. The present
recordable case rate is lower than 0,15. In Nigeria, the Escravos GTL
(EGTL) project is under construction and remains an opportunity
for Nigeria to play a leading role in one of the most advanced sectors
of the energy and fuel markets in the world today. In line with our
strategic intent, SSI is pursuing international opportunities, most
notably in Uzbekistan, Canada, USA, Australia, China and India, to
leverage our proprietary Fischer-Tropsch conversion technology. |
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Our GTL technology:
the Sasol process entails three steps*: |
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Reforming natural gas with oxygen and steam over a nickel
catalyst to produce syngas. |
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Converting syngas into long-chain waxy hydrocarbons in a
Sasol Slurry Phase Distillate™ Fischer-Tropsch (FT) reactor. |
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Selectively cracking the waxy hydrocarbons to produce
GTL diesel, GTL kerosene, GTL naphtha and LPG. |
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| Producing a new-generation diesel |
| With a high cetane number (70+ versus the conventional 45 – 55),
low sulphur (less than five parts/million), low aromatics (less than 1%)
and excellent cold-flow characteristics, Sasol GTL diesel is far superior
in quality than crude oil-derived diesel. This low-emission, premium-grade
fuel is also ideal as a blend stock for upgrading conventional diesels.
After many thousands of kilometres of testing, GTL diesel is compatible
with all fuel distribution infrastructures as well as engine and exhaust
after-treatment technologies and it can be used either neat or in
blends with crude oil-derived diesel in any compression ignition engine.
Performance benefits of GTL diesel include improved cold-start
properties, reduced noise and cleaner combustion. |
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| Our CTL technology also produces a low-sulphur, low-emissions diesel. |
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| Pursuing international CTL opportunities |
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SSI is progressing well with its plans to develop Sasol’s first CTL plant
outside South Africa. In China, the feasibility study for a plant at the
Ningdong Energy and Chemicals base has been completed, with
encouraging results. The project will be undertaken with Sasol’s partner
in China, the Shenhua Ningxia Coal Group, and we await the Chinese
Government’s approval for the project to go ahead. |
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Sasol is conducting a pre-feasibility study into a CTL facility in India.
The Indian government has awarded the SSI and Tata Group joint
venture long-term access to the Talcher coalfield in Orissa. |
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| Bringing GTL diesel to the world |
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In 2007, operations began at our Oryx GTL joint venture with Qatar
Petroleum. Today, it is the world’s largest operating commercial-scale
GTL facility. Oryx GTL is recording exceptional performance, at times
in excess of 35 000 b/d produced. Marketed mostly as a blend stock
in Europe and Asia, Oryx GTL diesel has notably superior properties. |
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Recent technology developments in the cost-effective extraction of
shale gas and resulting lower gas prices present an opportunity for
expansion of our GTL facilities. Following agreements with Talisman
to acquire a 50% stake in their Farrell Creek and Cypress A shale gas
assets respectively, we have embarked on a joint feasibility study with
Talisman to look at the potential for a GTL facility in Canada. |
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In Nigeria, the development of the Escravos GTL plant is advancing,
in partnership with Chevron and the Nigerian National Petroleum
Corporation. Completion of the project is due in 2013. |
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A feasibility study is under way to establish a GTL plant in Uzbekistan,
in partnership with Petronas and Uzbekneftegaz, with an estimated
capacity of 1,5 million tons of GTL product a year. |
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| Some of the leading car manufacturers are investigating the potential
of using more efficient homogenous charge compression ignition in their
new-generation engines and we believe our Fischer-Tropsch fuels will
support the technology. |
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| Sasol Petroleum International |
| Sasol Petroleum International (SPI) manages the group’s upstream interests
in natural gas and oil assets, and is active in upstream operations: exploration,
appraisal, development and production. |
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In Mozambique, SPI’s (70% equity and operator) produces gas and
condensate from the Pande and Temane fields through its central processing
facility (CPF) located in Temane, in partnership with Companhia Moçambicana
de Hidrocarbonetos (25% equity) and the International Finance Corporation
(5% equity). Production at the CPF started in 2004 at a rate of 120 million
GJ/a from the Temane field, and feeds both Mozambican as well as South
African markets. The Pande field was brought on stream in 2009 as part
of the 183 million GJ/a expansion project. This project is estimated to cost
USS$306 million and is scheduled to be completed in 2011.
Appraisal drilling in the Inhassoro field if part of the 2010/2011 Mozambique
well campaign and if successful will be followed by en Extended Well Test
to establish the economic viability of a liquids (light oil/condensate)
development project. This project could also improve the viability of a
potential LPG project.
In November, 2009 SPI acquired two offshore licenses in Mozambique,
100% of the Sofala Block and a 50% equal share with Petronas in Block M-10.
ENH has now been assigned a 15% carried interest in both the M-10 and
Sofala concessions. Potential success in either of these two new concessions
would possibly allow for this entire area, including the Njika discoveries in
EPC Blocks 16 and 19, to be developed further.
On 21 September 2010, the Exploration and Production Concession Contract
(EPCC) for the on-shore block Area A was signed by the Mozambique Ministry
of Mineral Resources and the concessionaires SPI (90%) and
ENH (10%). |
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In Gabon, SPI has 27,75% equity in the Etame Marin permit, operated by
Vaalco Energy. Gross oil production of about 22 000 b/d is realised from the
Etame, Ebouri and Avouma oil fields. |
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Progress continues in Asia-Pacific |
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In December, 2009 SPI signed a Farm-in Agreement with Finder
Exploration to take up a 45% equity stake in the promising AC/P-52 permit in
the offshore Browse Basin. This deal supplements the existing acreage position
in the block WA-388, which is located in the offshore Carnarvon Bason. |
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SPI has also progressed exploration activities in Papua New Guinea. Initial
seismic acquisition has been successfully concluded and subsequent prospect
evaluation has matured a drill site in PPL-285, which will be drilled in the
second quarter of 2011. Additional seismic is being acquired in 2011
to further detail possible follow-up drilling locations. |
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Expanding our upstream portfolio |
| Global exploration and new venture activities are focused on a number of core
areas: Southern Cone Africa, Australasia and North America regions. These
activities aim to fuel our upstream growth plans and are targeting both
conventional and non-conventional gas opportunities. |
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On 17 December 2010, SPI signed an agreement with the Canadian-based
Talisman Energy to acquire a 50% stake in their Farrell Creek shale gas
assets located in the Montney basin, of British Columbia and Alberta.
The CA$1 025 million (R6 950 million) acquisitions include 51 000 acres
of land with an estimated contingent resource of 9,6 trillion cubic feet (TCF)
of gas. Talisman Energy retain the remaining 50% interest and continue
as operator of the Farrell Creek assets, that include gas gathering systems
and processing facilities.
On 8 March 2011, SPI exercised an option and signed a letter of agreement
with Talisman to acquire a 50% stake in their Cypress A shale gas asset.
This CA$1 050 million (R7 413 million) acquisition is also located in
the Montney Basin and offers particularly thick productive shale
formations. The transaction covers over 57 000 acres of land with an
estimated contingent resource of 11.2 TCF. |
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| chemical cluster |
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The chemical cluster represents another important part of the
Sasol portfolio, in addition to the businesses in the South African
and international energy clusters. In South Africa, the chemical
businesses are closely integrated in the Fischer-Tropsch (FT)
value chain and produce a wide range of chemical products as
co-products of this process. Outside South Africa we operate
related chemical businesses. The chemical cluster supplements
our CTL and GTL growth through three growth areas – FT,
cracker and syngas platforms. |
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The most common products produced by companies in the
chemical cluster are polymers, monomers, waxes, fertilisers,
mining chemicals, explosives, alcohols, linear alkylbenzene,
surfactants, inorganic specialities, speciality gases and phenolics. |
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| sasol oil |
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Sasol Oil markets fuels blended at Secunda and refined through
its 63,6% share in Natref oil refinery at Sasolburg. Products
include petrol, diesel, jet fuel, illuminating paraffin, liquefied
petroleum gas, fuel-oils, bitumen and lubricants. It imports fuels
to balance its product slate and meet contractual commitments.
Sasol Oil operates 418 Sasol- and Exel-branded retail convenience
centres in South Africa and exports fuels to Southern Africa. |
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In 2010 we continued to upgrade Natref and improve its
stability. Throughput has increased since revamping the existing
diesel unifiner, which was completed in April 2010. We also
commenced construction of a pipeline between Sasol Oil
facilities at Secunda and Natref at Sasolburg. |
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| How fuel prices are calculated in South Africa |
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The petrol retail price is regulated by the
government and changed every month on
the first Wednesday of the month. The price is
calculated by the Central Energy Fund (CEF) on
behalf of the Department of Mineral Resources.
The petrol pump price is composed of a
number of price elements that can be divided
into international and domestic elements.
The international element, or Basic Fuel
Price (BFP), is based on what it would cost a
South African importer to buy petrol from an
international refinery and to transport the
product to South Africa. |
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