JOHANNESBURG, May 26, 2016 /CNW/ - Today, Sasol's field
development plan (FDP) for the Production Sharing Agreement (PSA) licence in Inhambane province, Mozambique, reached an important milestone with the commencement of the drilling of the first well.
Adjacent to its current producing Petroleum Production Agreement licence, the PSA development is an integrated oil, Liquefied
Petroleum Gas (LPG) and gas project.
The spud marks the beginning of the drilling campaign, which is part of the first phase of the FDP; the delineation and initial
development of the Temane G8, Temane East, Inhassoro G6 and Inhassoro G10 reservoirs. Thirteen production wells will be drilled
(including a water disposal well) during this initial phase, while oil and LPG production facilities will be installed close to the
existing Central Processing Facility (CPF). A 5th gas processing train will be installed at the CPF to process the
additional gas.
"The spud of the first well in the PSA licence area reaffirms Mozambique as the heartland of
Sasol's oil and gas strategy in sub-Saharan Africa and provides a platform from which to drive socio-economic growth," said
John Sichinga, Senior Vice President, Sasol Exploration and Production International.
Mozambique's Council of Ministers approved the PSA FDP in January this year. Shortly
thereafter, Sasol commissioned a drilling rig from French-based drilling contractor Société de Maintenance Pétrolière which arrived
in Maputo port on 19 March.
The phased development plan envisages the development of further hydrocarbon resources that will help to drive the growth of
both Mozambique and Southern Africa.
This first phase of the PSA Development is anticipated to cost approximately US$1,4 billion.
Phase 1 development represents the optimal development of four of the PSA geological layers in a safe and sustainable manner to
the benefit of all stakeholders. The utilisation of existing infrastructure in the area enables the safe and efficient use of
resources, while the development in tranches of the complex reservoirs is a prudent approach for timely de-risking of subsurface
resources and maximisation of overall project value.
Forward-looking statements: 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 of amounts 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 risks that 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 09 October 2015 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.
About Sasol: Sasol is an international integrated chemicals and energy company that leverages technologies and expertise of our
30 400 people working in 36 countries. We develop and commercialise technologies, and build and operate world-scale facilities to
produce a range of high-value product streams, including liquid fuels, chemicals and low-carbon electricity.
SOURCE Sasol Limited
