Sasol Commences Drilling of Mozambique PSA Licence

PR64556

JOHANNESBURG, May 26, 2016/PRNewswire=KYODO JBN/ --

    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 Societe de Maintenance Petroliere 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.

        Issued by:  

    Alex Anderson, Head of Group Media Relations

    Direct telephone: +27(0)11-441-3295; Mobile +27(0)71-600-9605;

    alex.anderson@sasol.com

    Matebello Motloung, Specialist: Media Relations

    Direct telephone: +27(0)11-441-3252, Mobile: +27(0)83-773-9457

    matebello.motloung@sasol.com

SOURCE: Sasol Limited