Sasol, Partners Award US$45mn Condensate Sales Contract to PETROMOC

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Sep 11, 2015, 09:03 ET

MAPUTO, Mozambique, September 11, 2015 /PRNewswire/ --

In a drive to promote local content in Mozambique, Sasol and its partners have entered into an agreement with Petróleos de Moçambique (PETROMOC), Mozambique's state-owned distributor of petroleum products, to purchase condensate from the Central Processing Facility in Temane, Inhambane province.

"Promoting local content is key to ensuring that the oil and gas industry promotes in-county economic development," said John Sichinga, Senior Vice President, Sasol Exploration and Production International. "We have been focusing on identifying, and sustaining Mozambican suppliers that can support and help develop our activities and participate meaningfully in the value chain of the growing hydrocarbon industry.

Proposals received were evaluated independently in terms of a set of established criteria by the unincorporated joint venture partners in the Petroleum Production Agreement licence, namely Sasol (70%), Companhia Moçambicana de Hidrocarbonetos (25%) and the International Finance Corporation (5%).

Sichinga added: "We intend to progress developing and growing Mozambican suppliers that can fulfil similar roles in our value chain."

According to Fernando Uache, CEO of Petromoc, "Sasol is and will continue to be a natural partner for Petromoc. It was with Sasol that we set our first joint venture in the context of activities that constitute our core business. Today, to earn the trust of Sasol in a contract of this dimension, confirms the affinities of both companies and the role of complementarity that Petromoc can play for the upstream activities developed by Sasol in Mozambique".

Sasol's commitment to Mozambique began well over a decade ago, when, together with its partners, CMH and IFC developed the Pande/Temane natural gas project. This project pioneered the monetisation of the Pande and Temane gas fields which had been effectively 'stranded' for over 30 years. The natural gas project has resulted in significant benefits flowing to Mozambique, with the investment unlocking the country's natural wealth and providing a platform for much-needed foreign investment, economic growth, skills and social development.

Notes to the editors:

Established in 1977, PETROMOC owns and operates storage facilities and pipelines across Mozambique, including 19 inland and coastal depots which boast a combined storage capacity of around 500,000 cubic metres. The largest supplier of fuel to Mozambique's leading industrial and commercial companies, the company markets fuels, oils, grease-oils and lubricants for use in the mining, agriculture and maritime sectors. PETROMOC also provides fuel to a host of neighbouring countries such as Zambia, Zimbabwe, Malawi and the Democratic Republic of Congo.
Sasol holds a 49% interest in Petromoc e Sasol Sarl (PeSS), a joint venture with PETROMOC. PeSS operates eight fuel retailing & convenience stores and has 47 commercial customers and a market share of 8% in the Downstream fuel business in Mozambique.

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 29 September 2014 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 the talent and expertise of approximately

31 000 people working in 37 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.

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