Sasol:providing integratedenergy solutions

Ebbie Haan: Managing Director, Sasol Petroleum International

Upstream Africa Conference, 31 October 2012

better together… we deliver

global trends and Sasol’s response

Issue

● De-linking of oil / gas price ratio creates a window for

Our response

● Acquired shale gas and accelerate GTLS l i d 50% f F ll C k d C Ag g p

GTL and other gas based projects • Sasol acquired 50% of Farrell Creek and Cypress A• GTL projects: Qatar, Nigeria, Uzbekistan, Canada, USA

● Leverage own chemical technologies• Ethylene tetramerisation

● World population increases by up to 50% by mid-century – increased demand for chemical products and food

Ethylene tetramerisation• Ethane Cracker• Integrated US chemicals• Fertilisers

● Pressure of carbon intensity● Focus is on low-or no-carbon electricity

• Sasolburg electricity generation• Mozambique electricity generation

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Sasol – providing energy solutions throughour integrated value chain

Committed to excellence in all we doCommitted to excellence in all we do, Sasol is an international integrated energy and chemical company that leverages the talent and expertise of ourleverages the talent and expertise of our more than 34 000 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 home-base of South Africa, Sasol is expanding , p ginternationally based on a unique value proposition, which links our diverse businesses into an integrated value

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chain supported by top-class functions

our integrated business model

Crude oil – open market purchases

Fuelcomponents

Refining and blending

Co- Recovery and

Exploration and production of feedstock Marketing

GTL/CTL t h l Syngas Co

productsRecovery and beneficiation• Coal

• Natural gas• Oil

Marketingof products

technology (LT or HT)

Syngasproduction

Chemical feedstock

Chemical workup

Chemical feedstock – third party producers

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New Energy New Energy

our global presence – where we operate

Northern Asia

Europe

North

Far EastAmerica

Southeast Asia

Middle East

A iRest of Africa

Australasia

Southern Africa

Asia

SouthAmerica Southern Africa

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geographic split of profits and capital commitments

Operating profit by region Capital commitments by region

14%

1%2% 5%

4%

11%1%

1%

14%2%

77%82%

South Africa Rest of Africa

82%

Europe The AmericasSoutheast Asia and Australasia Middle East and IndiaFar East

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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 b d t t f l t di l lboards, transport fuels, to medical lasers, sun creams perfumes and plastic bottles. Our wide range of products are made in, primarily South Africa the United Statesprimarily, South Africa, the United States, Europe, the Middle East, and Asia.

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making a positive contribution to the countriesin which we operate – South Africa

Fl hi j tFlagship projects● Sasolburg● Secunda

Value-add to South Africa● Industrial development● Social developmentp

8better together… we deliver

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 j yliquid fuels and chemical businesses in the country

● Today, we are recognised as a world leader oday, e a e ecog sed as a o d eadein 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● 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

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p

contributing to social and economic development

● Two towns established

Sasolburg: Population of over 140 000• Sasolburg: Population of over 140 000

• Secunda: over 200 000

● Committed R309m (US$36m)● Committed R309m (US$36m)to socio-economic development in South Africa in FY12

● Surpassed Mining Charter BEE● Surpassed Mining Charter BEE ownership thresholds set for 2014

● Proudly sponsored the 2012 South African Olympic 3 gold medals 2 silverAfrican Olympic – 3 gold medals, 2 silver medals and 1 bronze medal and Paralympic teams – 8 gold, 12 silver,9 bronze9 bronze

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making a positive contribution to the countriesin which we operate - Mozambique

Flagship projects● Natural gas project

Value-add to Mozambique● Energy security● Energy security

and solutions● Economic and

social development

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our natural gas value chain

Mozambique South Africa

Royalty Pande

Central

GasPande

N t l

183 MGJ/a

Processing Facility

Sasol GasRompco PipelineRessano Garcia

Naturalgas fields

● 50% Sasol Gas● 25% iGas● 25% Companhia

TemanePPA● 70% Sasol Petroleum Temane● 25% Companhia Moçambicana

de Hidrocarbonetos S.A.5% I t ti l Fi

● 25% Companhia Moçambicana de Gasoduto

Sasol Sasol 3rd PartiesS l

● 5% International Finance Corporation

Sasol Secunda

Sasol Sasolburg

3rd Parties RSA

In development

SasolNew Energy 3rd Parties

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delivery on our current assets

● US$307m CPF expansion project -● US$307m CPF expansion project -50% increase to 450 MMscf/d• Over 600 Mozambicans employed• US$64m spent on Mozambican• US$64m spent on Mozambican

suppliers• Domestic gas sales agreements

concluded for 25 MGJ/aconcluded for 25 MGJ/a

● Planned activities:• Additional PPA/PSA reserves

maturationmaturation• Developing/appraising Inhassoro oil

field and surrounding discoveriesContinued exploration• Continued exploration

• Pursue integrated monetisation opportunities: GTL/Chemicals and Power

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Power

exploration focused on growing integrated value chain in the country

Year 0 Year 10Time (years) Year 6 Year 40

Milestones Drilling exploration well

Appraisalcampaign FID First gas Abandonment

Current assets will be polarised by end of 2014Partnerships

/farm-ins

16 / 19 AreaA

Sofala

NjikaA

M 10

Onshoreand offshore

PSA/ Inhassoro

and offshore bid rounds

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Source: Statement of Asset Resources FY 2012 - SPI

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 encouraginglooks encouraging

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Mozambique Sofala 3D seismic acquisitionArea A Mupeji – 1 drilling

enabling energy security in Mozambique

● Initial royalty gas from CPF project stimulated growth on y y g j ggas based industry in Mozambique

● 27mGJ/a of the CPF expanded capacity to be sold to industries in Mozambique for power generation g

● 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

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In discussion for a 140 MW capacity gas engine project in partnership with the power utility company

Sasol’s operation has become a catalystfor social development

● US$13m spent on social projects

● Plans in place to have 85% pMozambican operational staff by 2015 (currently 60%)

● Announced bursaries for Mozambican nationals

● Working on increasing circle of beneficiaries beyond ycommunities close to the CPF and the pipeline

● Close dialogue with local gcommunity helps withneeds-driven CSR projects

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making a positive contribution to the countriesin 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 otherportfolio than any other gas producer in the world

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assisted Qatar in achieving its vision to be a gas capital of the world

● Constructed world’s first commercial-scale GTLConstructed world s first commercial scale GTL plant outside South Africa - developed at a cost of US$1bn

● Diversified gas production into GTL andDiversified gas production into GTL and accessed the lucrative global transport markets

● GTL technology has enabled Qatar to benefit from a more versatile and balanced productionfrom a more versatile and balanced production portfolio than any other gas producer in the world

● ORYX GTL plant continues to achieve new production records and is consistently producing p oduct o eco ds a d s co s ste t y p oduc gabove its design capacity of 32 400bpd

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making a positive contribution to the countriesin which we operate – North America

Flagship projects● Shale gas acquisition Shale gas acquisition

in Canada● Lake Charles complex

Value-add to North AmericaValue add to North America● Unlock natural gas resources● Stimulate to local economy● In-country energy solutions

20better together… we deliver

a new natural gas outlook for North America

800

tcf)

600

700

as v

olum

e (

Shale gas has added70 to 100 years resource life

400

500Ga y

based on current US production

200

300

0

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ille lus

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ord

ley

ord

nett

ash

nah

sier ille tes

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oss

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Source: IHS CERA 2010

gas market dynamics support US strategy

● Shale gas boom presents unique opportunity

80

100

bcf/d

US gas production¹

● Gas production to increase ~40%by 2030

● Expect ~60% increase in associated 20

40

60

80b

Expect 60% increase in associated liquids production

● Sasol able to benefit from both developments

0

20

2000 2005 2010 2015 2020 2025 2030

US t l li id d ti ¹developments

• GTL benefits from increased gas volumes at discount to equivalent il i

3000

4000

kbbl

/d

US natural gas liquid production¹

oil price

• chemicals benefits from availabilityof advantaged ethane feedstock 0

1000

2000

2000 2005 2010 2015 2020 2025 2030Ethane Propane Butane Natural Gasoline

1. Lower 48 states of the United States (excluding Alaska and Hawaii)

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Sasol shale gas and GTL project in Canada

M t t hi● Montney partnershipFarrell Creek and Cypress A

● One of the most prolific shale plays in North America

● All year access and excellent infrastructure

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Source: Talisman 2011

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

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under construction at same site

making a positive contribution to the countriesin which we operate – Botswana

Flagship projects● Coal Bed Methane

Possible value-add to Botswana● Power generation● Stimulate local

economy

25better together… we deliver

pioneering coal bed methane in Botswana

● As part of our overall drive to diversify the feedstock for our p yeconomic 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 with p pOrigin Energy• Kubu’s purpose: to explore for Coal Bed Methane (CBM) • Kubu owns three prospecting licences covering an area of p p g g

approximately 3 000km² and are located in the Central province of Botswana

• Kubu will explore in the licence area to determine the quantityp q yof 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

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Our compelling investment proposition

Solid Attractive Leading

● ORYX GTL flagship

on

foundation business

● Growing demand for energy security and

growth strategy

● Solid balance sheet underpins growth

gshareholder returns

● Highly cash generative assets

● Continuously improving lue

crea

tio

energy security and energy independence

● Ability to monetise hydrocarbon resources

underpins growth

● Progressive dividend policy

y p gexisting businesses

● Proven alternative energy experience in ai

nabl

e va

l hydrocarbon resources

● Strong project pipeline including US GTL and ethane cracker

● Leading long-term share price performance

e e gy e pe e ceSouth Africa and abroad

Sust

a ethane cracker

● Capitalise on low feedstock prices

By taking big ideas that seem impossible, to large-scale commercial reality,

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we unlock the value of natural resources to build economic and social capital

Sasol:providing integratedenergy solutions Ebbie Haan: Managing Director,Sasol Petroleum International

better together… we deliver