Sasol Hedges About 30% (Oil Equivalent) of Its South African Synthetic Fuels and West African Crude Oil Production

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Mar 08, 2011, 11:29 ET

JOHANNESBURG, March 8, 2011 /PRNewswire/ -- Sasol (JSE: SOL; NYSE: SSL) announces that it has entered into hedging transactions (zero cost collars) for 4,56 million barrels of oil (equivalent to circa 30% of its planned South African synfuels and West African crude oil production for the final quarter of the 2011 financial year). The zero cost collars expire on 15 June 2011.

The hedge will provide downside protection should monthly average dated Brent crude oil prices decrease below US$85 per barrel (put level) on the hedged portion of production. Conversely, Sasol will incur opportunity losses on the hedged portion of production should monthly average oil prices exceed a volume weighted average US$172.77 per barrel (call level). Call levels between US$170 per barrel and US$175 per barrel were entered into.

Sasol assesses the appropriateness of oil price hedging continuously and periodically enters into hedging transactions to improve the stability and predictability of cash flows as part of its risk management activities.

Sasol Investor Relations

Tel.: +27 (0)11 441 3321 / 3563

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Deutsche Securities (SA) (Pty) Limited

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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.

Date: 08/03/2011 17:39:00 Produced by the JSE SENS Department.

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SOURCE Sasol Limited