Sasol: providing integrated energy solutions

Transcription

1 Sasol: providing integrated energy solutions Ebbie Haan: Managing Director, Sasol Petroleum International Upstream Africa Conference, 31 October 2012 better together we deliver

2 global trends and Sasol s response Issue De-linking of oil / gas price ratio creates a window for GTL and other gas based projects World population increases by up to 50% by mid-century increased demand for chemical products and food Pressure of carbon intensity Our response Acquired shale gas and accelerate GTL Sasol acquired 50% of Farrell Creek and Cypress A GTL projects: Qatar, Nigeria, Uzbekistan, Canada, USA Leverage own chemical technologies Ethylene tetramerisation Ethane Cracker Integrated US chemicals Fertilisers Focus is on low-or no-carbon electricity Sasolburg electricity generation Mozambique electricity generation 2

3 Sasol providing energy solutions through our integrated value chain Committed to excellence in all we do, Sasol is an international integrated energy and chemical company that leverages the talent and expertise of our more than 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 homebase of South Africa, Sasol is expanding internationally based on a unique value proposition, which links our diverse businesses into an integrated value chain supported by top-class functions 3

4 our integrated business model Crude oil open market purchases Fuel components Refining and blending Exploration and production of feedstock Coal Natural gas Oil GTL/CTL technology (LT or HT) Syngas production Co- products Recovery and beneficiation Marketing of products Chemical feedstock Chemical workup Chemical feedstock third party producers New Energy New Energy 4

5 our global presence where we operate Northern Asia Europe North America Far East Southeast Asia Rest of Africa Middle East A i Asia Australasia South America Southern Africa 5

6 geographic split of profits and capital commitments Operating profit by region Capital commitments by region 11% 1% 14% 1% 2% 5% 4% 2% 1% 77% 82% South Africa Europe Southeast Asia and Australasia Far East Rest of Africa The Americas Middle East and India 6

7 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 boards, transport fuels, to medical lasers, sun creams perfumes and plastic bottles. Our wide range of products are made in, primarily, South Africa, the United States, Europe, the Middle East, and Asia. 7

8 making a positive contribution to the countries in which we operate South Africa Flagship projects Sasolburg Secunda Value-add to South Africa Industrial development Social development better together we deliver 8

9 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 liquid fuels and chemical businesses in the country Today, we are recognised as a world leader in 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 increased by 14% to R18,8bn (~US$2bn) Invested R819m (US$95m) in skills development in South Africa in FY12 9

10 contributing to social and economic development Two towns established Sasolburg: Population of over Secunda: over Committed R309m (US$36m) to socio-economic development in South Africa in FY12 Surpassed Mining Charter BEE ownership thresholds set for 2014 Proudly sponsored the 2012 South African Olympic 3 gold medals, 2 silver medals and 1 bronze medal and Paralympic teams 8 gold, 12 silver, 9 bronze 10

11 making a positive contribution to the countries in which we operate - Mozambique Flagship projects Natural gas project Value-add to Mozambique Energy security and solutions Economic and social development better together we deliver 11

12 our natural gas value chain Mozambique South Africa Pande 183 MGJ/a Royalty Gas Natural gas fields Temane PPA Central Processing Facility 70% Sasol Petroleum Temane 25% Companhia Moçambicana de Hidrocarbonetos S.A. 5% International ti Finance Corporation Ressano Garcia Rompco Pipeline Sasol Gas 50% Sasol Gas 25% igas 25% Companhia Moçambicana de Gasoduto Sasol New Energy 3 rd Parties Sasol Sasol 3rd Parties Secunda Sasolburg RSA In development 12

13 delivery on our current assets US$307m CPF expansion project - 50% increase to 450 MMscf/d Over 600 Mozambicans employed US$64m spent on Mozambican suppliers Domestic gas sales agreements concluded for 25 MGJ/a Planned activities: Additional PPA/PSA reserves maturation Developing/appraising Inhassoro oil field and surrounding discoveries Continued exploration Pursue integrated monetisation opportunities: GTL/Chemicals and Power 13

14 exploration focused on growing integrated value chain in the country Time (years) Year 0 Year 6 Year 10 Year 40 Milestones Drilling exploration well Appraisal campaign FID First gas Abandonment Partnerships /farm-ins Current assets will be polarised by end of / 19 Area A Sofala M 10 Njika PSA/ Inhassoro Onshore and offshore bid rounds Source: Statement of Asset Resources FY SPI 14

15 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 encouraging Area A Mozambique Sofala 3D seismic acquisition Mupeji 1 drilling 15

16 enabling energy security in Mozambique Initial royalty gas from CPF project stimulated growth on gas based industry in Mozambique 27mGJ/a of the CPF expanded capacity to be sold to industries in Mozambique for power generation 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 in partnership with the power utility company 16

17 Sasol s operation has become a catalyst for social development US$13m spent on social projects Plans in place to have 85% Mozambican operational staff by 2015 (currently 60%) Announced bursaries for Mozambican nationals Working on increasing circle of beneficiaries beyond communities close to the CPF and the pipeline Close dialogue with local community helps with needs-driven CSR projects 17

18 making a positive contribution to the countries in 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 other gas producer in the world better together we deliver 18

19 assisted Qatar in achieving its vision to be a gas capital of the world Constructed world s first commercial-scale GTL plant outside South Africa - developed at a cost of US$1bn Diversified gas production into GTL and accessed the lucrative global transport markets GTL technology has enabled Qatar to benefit from a more versatile and balanced production portfolio than any other gas producer in the world ORYX GTL plant continues to achieve new production o records and is consistently ste t producing above its design capacity of bpd 19

20 making a positive contribution to the countries in which we operate North America Flagship projects Shale gas acquisition in Canada Lake Charles complex Value-add add to North America Unlock natural gas resources Stimulate to local economy In-country energy solutions better together we deliver 20

21 a new natural gas outlook for North America 800 tcf) Shale gas has added 70 to 100 years resource life based on current US production Gas volume ( Haynesville Marcellus Montney Horn River Eagle Ford Cotton Valley Woodford Barnett Granite Wash Jonah Deep Bossier Fayettev Natural Butt ille tes Piceance Bossier Colony Wash Source: IHS CERA

22 gas market dynamics support US strategy Shale gas boom presents unique opportunity Gas production to increase ~40% by 2030 bcf/d 100 Expect ~60% increase in associated 20 liquids production Sasol able to benefit from both developments GTL benefits from increased gas volumes at discount to equivalent oil price kbbl/d US gas production¹ US natural gas liquid id production¹ chemicals benefits from availability 1000 of advantaged ethane feedstock Ethane Propane Butane Natural Gasoline 1. Lower 48 states of the United States (excluding Alaska and Hawaii) 22

23 Sasol shale gas and GTL project in Canada Montney partnership Farrell Creek and Cypress A One of the most prolific shale plays in North America All year access and excellent infrastructure Source: Talisman

24 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 under construction at same site 24

25 making a positive contribution to the countries in which we operate Botswana Flagship projects Coal Bed Methane Possible value-add to Botswana Power generation Stimulate local economy better together we deliver 25

26 pioneering coal bed methane in Botswana As part of our overall drive to diversify the feedstock for our economic 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 p with Origin Energy Kubu s purpose: to explore for Coal Bed Methane (CBM) Kubu owns three prospecting p licences covering an area of approximately 3 000km² and are located in the Central province of Botswana Kubu will explore in the licence area to determine the quantity of 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

27 Our compelling investment proposition Solid Attractive Leading foundation business growth strategy shareholder returns Susta ainable val lue creatio on ORYX GTL flagship Highly cash generative assets Continuously improving existing businesses Proven alternative energy e experience e in South Africa and abroad Growing demand for energy security and energy independence Ability to monetise hydrocarbon resources Strong project pipeline including US GTL and ethane cracker Capitalise on low feedstock prices Solid balance sheet underpins growth Progressive dividend policy Leading long-term share price performance By taking big ideas that seem impossible, to large-scale commercial reality, we unlock the value of natural resources to build economic and social capital 27

28 Sasol: providing integrated energy solutions Ebbie Haan: Managing Director, Sasol Petroleum International better together we deliver