Sasol 2011Sustainable Development Report launch...Sasol’s 2011 sustainable development report 12th...

Sasol 2011Sustainable Development Report launch

17 November 2011

Sasol sustainable development reporting

Howard Parry, Group GM SHE

Sasol’s 2011 sustainable development report

12th external SD report since 1996

Forms an important part of the integrated reporting process:

linking strategy and performance

financial, social, environmental and economic

create and sustain value over short, medium and long term

we seek to move beyond a compliance mindset

approach is in line with international trends


The SD report:

Provides comprehensive quantitative data

Includes benchmarking comparisons:

safety

greenhouse gas emissions

Requires understanding and commitment from all

employees for success


safety Recordable Case Rate

reduced by 18% to 0.42

Fires, explosions and

releases reduced by 17%

to 52


water security Voluntary water efficiency

targets at the main

operating facilities in

Sasolburg and Secunda

Held water usage

constant with growing

production


energy security and

climate change GHG emissions intensity

reduced by 2% to 2.99

tons CO2 per ton product

Target is 15% reduction

from 2005 to 2020


atmospheric emissions Plans to achieve 80% reduction in emissions of defined volatile

organic compounds by 2020

workforce diversity We have made some important improvements, however our

performance is beginning to plateau

skills development We continue to run one of the largest bursary schemes in South Africa

ethical business practice We have continued to raise awareness and provide training on

compliance with competition laws

Sasol New Energy focus & projects Henri Loubser, MD Sasol New Energy

Sasol New Energy (SNE) is the group’s

newest business unit

SNE focuses on:

Establishing a low carbon electricity value chain to reduce our companies

and countries reliance on coal based energy

Development and deployment of options and integrated solutions in our

existing operations to reduce Carbon Dioxide (CO2)

Energy efficiency

Carbon Capture and Storage (CCS)

Commercialising Underground Coal Gasification (UCG) as a viable

unconventional gas technology

Considering options in generating and sourcing renewable power

generated electricity such as solar and wind

Developing water conservation partnerships in the catchment areas where

Sasol operates

copyright reserved 2011, Sasol New Energy

Created to develop sustainable solutions for Sasol in a carbon and water

constrained world

Driving energy efficiency and reducing GHG

emissions

0%

20%

40%

60%

80%

100%

FY10 FY11 >FY13e

Sasol’s electricity balance (RSA)

Purchased Self generated

Focus is on low- or no-carbon

electricity

Combined Cycle Gas Turbines in

Secunda (operational since July 2010)

generates up to 280MW from natural

gas

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 140MW gas-to-

power opportunity in Mozambique

Other renewable energy and low-

carbon electricity initiatives, including

concentrated solar power under

investigation Implement and drive a group-wide CO2

mitigation programme


Using South Africa’s abundant natural resources -

direct sunlight and wind

Currently not involved in IPPPP programme

Intent is to develop a technology position in CSP and develop it

such that solar electricity can reach grid parity pricing

Exploring opportunities to invest in wind power facilities

A number of solar initiatives are being investigated:

Concentrated Solar Power (CSP) electricity generation

facility in Northern Cape

Concentrated Solar Power Research and Development

facility in Sasolburg

Small scale Photo Voltaic (PV) installations at our

operations in Sasolburg and Secunda


Water security challenges are being

addressed

Signatory to the United Nations Global compact CEO Water

Mandate

Voluntary internal water efficiency targets have been set

Secunda operations – 5% water use intensity improvement (m3/ton product) by

2015 from 2010 baseline

Sasolburg operations – 15% intensity improvement by 2015

Promoting effective catchment management and water

conservation beyond our direct operations

Emfuleni Municipality water conservation partnership

5% reduction in water use by 2014, mainly through the repair and

retrofitting of leaking plumbing and distribution systems in households

in Sebokeng and Evaton townships

Govan Mbeki Municipality water conservation partnership

Initial focus will be water conservation in the eMbalenhle township

Metsimaholo Municipality and schools water conservation

partnership


CCS forms an integral part of Sasol’s long-term CO₂ mitigation plans

Invested in CO₂ Technology Centre Mongstad (TCM) which aims to

demonstrate large scale capture from dilute flue gases

Sasol is part of the CO2CRC that has developed and operated the Otway

project (storage in depleted gas and saline reservoirs) in Australia

Sasol has a large knowledge base and

considerable operating experience with the large

scale capture of CO₂

Working closely with the SA Centre for CCS,

At present undertaking scoping study for test

injection with completion expected by the end of

this year

Aims to start test injection in 2016


Clean coal technologies are key to being

environmentally responsible while utilising

South Africa’s substantial coal reserves

Underground Coal Gasification

Low-quality deep coal can be put to

productive use

Produce fuel gas for power or steam

generation and syngas

Smaller environmental footprint

Minimal waste

Low dust, noise and visual impact

Lower water consumption

Technology supplier appointed

Feasibility study underway


SPI’s contribution to Sasol’s gas needs

Ebbie Haan, MD Sasol Petroleum International

17

contents

Pertinent global market trends

Sasol’s response to global market trends


Major acquisitions

Outlook on growth

18

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

19

contents

Pertinent global market rends



Major acquisitions

Outlook on growth

20

sasol’s response to global market trends ORYX 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

20 Highly profitable venture with handsome returns to shareholders

21

sasol’s response to global market trends Uzbekistan GTL, Karshi, Uzbekistan

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 Shurtan Gas Chemical Complex

22

sasol’s response to global market trends Sasol New Energy: exploring new energy options and technologies

Electricity generated from two

100 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 biofuels under

investigation

Implement and drive a group-wide CO₂ mitigation programme

23

contents




Major acquisitions

Outlook on growth

24

SPI’s contribution to sasol’s gas needs Upstream asset portfolio

Gas licences

Nigeria

Oil licences

Australia

Canada

South Africa

Papua New

Guinea

Current SPI position

Gabon

Mozambique

Botswana

Shale gas/coal bed methane licences

Technical 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)

25

SPI’s contribution to sasol’s gas needs Changing 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

26

SPI – producing assets Pande, 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

27

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 assets Fast facts on the central processing facility expansion project

28

SPI – exploration: conventional Mozambique 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

29

SPI – exploration: conventional Mozambique – Offshore play diagram

30

SPI – exploration: conventional Mozambique – Mupeji Aptian Platform carbonate prospect

31

SPI – exploration: conventional Mozambique – Aptian Syn/Post Rift play in Sofala

32

SPI – exploration: conventional Offshore 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

33

SPI – exploration : non-conventional CBM 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

34

contents




Major acquisitions

Outlook on growth

35

SPI – major acquisitions Canada – 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

● 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

Source: Talisman 2011

Alberta

British

Colombia

TLM land

Basin

Major pipeline

Sasol/TLM land

The feasibility study of a 96,000 bbl/d GTL facility in Canada has commenced

The feasibility study of a 96 000 bbl/d facility in Canada has commenced

36

contents




Major acquisitions

Outlook on growth

37

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

Gabon

Maintain full asset

production

Southern Africa

•Botswana CBM

•Moz expansion

•TCP offshore

Zululand Basin

38

SPI – outlook on growth Consolidated production volumes (liquids and gas) equity share, risked

0

50

100

150

200

250

300

350

400

450

2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040

000

Bo

e/d

Gabon oil production Total condensate production

Mozambique gas production Farrell Creek gas production

Cypress gas production Range of Exploration Outcomes

Upper 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

39

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

40

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

Thank you

Sasol 2011Sustainable Development Report launch...Sasol’s 2011 sustainable development report 12th...

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