sasol 2011sustainable development report launch...sasol’s 2011 sustainable development report 12th...
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Sasol’s 2011 sustainable development report
12th external SD report since 1996
Forms an important part of the integrated reporting process:
linking strategy and performance
financial, social, environmental and economic
create and sustain value over short, medium and long term
we seek to move beyond a compliance mindset
approach is in line with international trends
Sasol’s 2011 sustainable development report
The SD report:
Provides comprehensive quantitative data
Includes benchmarking comparisons:
safety
greenhouse gas emissions
Requires understanding and commitment from all
employees for success
Sasol’s 2011 sustainable development report
safety Recordable Case Rate
reduced by 18% to 0.42
Fires, explosions and
releases reduced by 17%
to 52
Sasol’s 2011 sustainable development report
water security Voluntary water efficiency
targets at the main
operating facilities in
Sasolburg and Secunda
Held water usage
constant with growing
production
Sasol’s 2011 sustainable development report
energy security and
climate change GHG emissions intensity
reduced by 2% to 2.99
tons CO2 per ton product
Target is 15% reduction
from 2005 to 2020
Sasol’s 2011 sustainable development report
atmospheric emissions Plans to achieve 80% reduction in emissions of defined volatile
organic compounds by 2020
workforce diversity We have made some important improvements, however our
performance is beginning to plateau
skills development We continue to run one of the largest bursary schemes in South Africa
ethical business practice We have continued to raise awareness and provide training on
compliance with competition laws
Sasol New Energy (SNE) is the group’s
newest business unit
SNE focuses on:
Establishing a low carbon electricity value chain to reduce our companies
and countries reliance on coal based energy
Development and deployment of options and integrated solutions in our
existing operations to reduce Carbon Dioxide (CO2)
Energy efficiency
Carbon Capture and Storage (CCS)
Commercialising Underground Coal Gasification (UCG) as a viable
unconventional gas technology
Considering options in generating and sourcing renewable power
generated electricity such as solar and wind
Developing water conservation partnerships in the catchment areas where
Sasol operates
copyright reserved 2011, Sasol New Energy
Created to develop sustainable solutions for Sasol in a carbon and water
constrained world
Driving energy efficiency and reducing GHG
emissions
0%
20%
40%
60%
80%
100%
FY10 FY11 >FY13e
Sasol’s electricity balance (RSA)
Purchased Self generated
Focus is on low- or no-carbon
electricity
Combined Cycle Gas Turbines in
Secunda (operational since July 2010)
generates up to 280MW from natural
gas
New R1,8bn Sasolburg power project
(140MW) in execution – operational in
2013
› Increases self generated power
capacity to 60% by 2013
› Reduces CO₂ emissions by ~1Mt/a
Progressing on a 140MW gas-to-
power opportunity in Mozambique
Other renewable energy and low-
carbon electricity initiatives, including
concentrated solar power under
investigation Implement and drive a group-wide CO2
mitigation programme
copyright reserved 2011, Sasol New Energy
Using South Africa’s abundant natural resources -
direct sunlight and wind
Currently not involved in IPPPP programme
Intent is to develop a technology position in CSP and develop it
such that solar electricity can reach grid parity pricing
Exploring opportunities to invest in wind power facilities
A number of solar initiatives are being investigated:
Concentrated Solar Power (CSP) electricity generation
facility in Northern Cape
Concentrated Solar Power Research and Development
facility in Sasolburg
Small scale Photo Voltaic (PV) installations at our
operations in Sasolburg and Secunda
copyright reserved 2011, Sasol New Energy
Water security challenges are being
addressed
Signatory to the United Nations Global compact CEO Water
Mandate
Voluntary internal water efficiency targets have been set
Secunda operations – 5% water use intensity improvement (m3/ton product) by
2015 from 2010 baseline
Sasolburg operations – 15% intensity improvement by 2015
Promoting effective catchment management and water
conservation beyond our direct operations
Emfuleni Municipality water conservation partnership
5% reduction in water use by 2014, mainly through the repair and
retrofitting of leaking plumbing and distribution systems in households
in Sebokeng and Evaton townships
Govan Mbeki Municipality water conservation partnership
Initial focus will be water conservation in the eMbalenhle township
Metsimaholo Municipality and schools water conservation
partnership
copyright reserved 2011, Sasol New Energy
CCS forms an integral part of Sasol’s long-term CO₂ mitigation plans
Invested in CO₂ Technology Centre Mongstad (TCM) which aims to
demonstrate large scale capture from dilute flue gases
Sasol is part of the CO2CRC that has developed and operated the Otway
project (storage in depleted gas and saline reservoirs) in Australia
Sasol has a large knowledge base and
considerable operating experience with the large
scale capture of CO₂
Working closely with the SA Centre for CCS,
At present undertaking scoping study for test
injection with completion expected by the end of
this year
Aims to start test injection in 2016
copyright reserved 2011, Sasol New Energy
Clean coal technologies are key to being
environmentally responsible while utilising
South Africa’s substantial coal reserves
Underground Coal Gasification
Low-quality deep coal can be put to
productive use
Produce fuel gas for power or steam
generation and syngas
Smaller environmental footprint
Minimal waste
Low dust, noise and visual impact
Lower water consumption
Technology supplier appointed
Feasibility study underway
copyright reserved 2011, Sasol New Energy
17
contents
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
18
Oil/gas price differential maintained
• de-link of oil /gas price ratio creates a window
for GTL and other gas based projects
• opportunity to acquire further shale gas
Some pertinent global trends
Pressure on carbon intensity
Sasol recently acquired 50% of
Farrell Creek and Cypress A
• focus is on low- or no-carbon electricity
• accelerated exploration in Southern Cone of
Africa – Mozambique, Botswana
Sasol New Energy will be developing
options and new technologies for Sasol in
a carbon and water constrained world
19
contents
Pertinent global market rends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
20
sasol’s response to global market trends ORYX GTL, Sasol’s GTL flagship
In operation and highly successful
Joint venture between Qatar Petroleum (51%) and Sasol (49%)
32 400 bbl/d design capacity, producing ultra-low sulphur diesel, naphtha and LPG
Stable operation (80-90% capacity utilisation)
Instantaneous production record of 36 860 bbl/d achieved
Production to be increased by 10% through de-bottlenecking
Investigating the possibility of an expansion
20 Highly profitable venture with handsome returns to shareholders
21
sasol’s response to global market trends Uzbekistan GTL, Karshi, Uzbekistan
Uzbekneftegaz, Sasol and PETRONAS established a joint venture – December 2009
Project has moved into FEED stage
Targeting nominal plant capacity of
1.4 million tons per annum
Product slate target – GTL diesel,
GTL kerosene and GTL naphtha
The plant will be located near the town of Karshi in the southern part of Uzbekistan
Gas feedstock from adjacent Shurtan Gas Chemical Complex
22
sasol’s response to global market trends Sasol New Energy: exploring new energy options and technologies
Electricity generated from two
100 MW open-cycle gas turbines
at Sasol Synfuels, Secunda ,
being sold to Eskom
(commissioned 2010)
New R1,8bn Sasolburg power
project (140MW) in execution –
operational in 2013
Increases self generated power
capacity to 60% by 2013
Reduces CO₂ emissions by
~1Mt/a
Progressing on a gas-to-power
opportunity in Mozambique
Other renewable energy and low-
carbon electricity initiatives,
including concentrated solar
power and biofuels under
investigation
Implement and drive a group-wide CO₂ mitigation programme
23
contents
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
24
SPI’s contribution to sasol’s gas needs Upstream asset portfolio
Gas licences
Nigeria
Oil licences
Australia
Canada
South Africa
Papua New
Guinea
Current SPI position
Gabon
Mozambique
Botswana
Shale gas/coal bed methane licences
Technical Cooperation (study) Permit (TCPs)
• 8 countries: 3 operated (Botswana, Mozambique and PNG) and 5 non-operated
• Acreage Net Area (excl TCPs): 54 407km² (onshore, offshore, shale gas and CBM)
• 3 producing: gas (Canada and Mozambique) and oil (Gabon)
25
SPI’s contribution to sasol’s gas needs Changing gear
1995 – 2004 • First engagement
with Mozambique
• Gabon production
2007 – 2011 • Growth beyond Africa
• Gas centric upstream
strategy
• Unconventional
exploration venture
• Canada Acquisition
Beyond 2011 • Massive production
growth (45 kboe/d to 270 kboe/d)
• Significant organisational growth
• Acceleration of global exploration
• More acquisitions
2004 – 2007 • Mozambique
production
• Growth into Nigeria
26
SPI – producing assets Pande, Temane and Inhassoro Complex
Equity Sasol 70% (Operator), CMH 25%, IFC 5%
Temane on stream 2004
Pande on stream July 2009 producing 230 MMscf/d, with Temane providing swing
Currently produces ~300 MMscf/d
US$300 million expansion 98% complete for 50% increase to 450 MMscf/d
Inhassoro oil appraisal ongoing with option for LPG project development in the success case
27
Over two-million man hours worked on this project. RCR of 0.46 was achieved
The project employed over 600 Mozambicans – significant job creation for the area
Substantial amounts of money spent with Mozambican suppliers - good economic impact for the region and country as a whole
Keep close dialogue alive with local community and carry out discrete and needs-driven social and medical projects
To top it all, a saving of 30% on approved project capital was achieved
SPI – producing assets Fast facts on the central processing facility expansion project
28
SPI – exploration: conventional Mozambique offshore opportunities
Evaluation efforts now looking beyond the proven Grudja Play (Njika, Pande etc)
‘Going Deep’ 3 new plays with significant upside in largely non-penetrated stratigraphy
Aptian Syn/Post Rift structural plays
Albian Carbonate platform play
Karoo Pre/Syn Rift structural play
3D seismic planned for mid-2012 to mature Aptian Syn/Post Rift play in Sofala
Exploration well to test Albian Carbonate play scheduled for Q3 2012 in M10
32
SPI – exploration: conventional Offshore South Africa –TCP 032, Durban and Zululand Basins
Technical cooperation permit (TCP032) granted in September 2011 for 12 months
Area: 83 000 km²
Initial study to evaluate whether area is suitable for exploration right permit applications
Sasol (100% equity) has exclusive rights to apply for an Exploration Right permit within 12 months
Sasol may consider partnering for next phase
Existing west – east seismic line in the
Durban Basin
33
SPI – exploration : non-conventional CBM Botswana
SPI recently announced its Joint Venture partnership with major Australian Coal Bed Methane player: Origin Energy
Kubu Energy Resources (Pty) Ltd
Acquisition of three CBM licenses in Botswana
Covering approximately 3 000km²
Located in the Central Province of Botswana
Subject to final approval by the Botswana Government
Exploration activities will include
Core sampling from multiple boreholes
Airborne magnetic survey
5-well (‘5-spot’) pilot
34
contents
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
35
SPI – major acquisitions Canada – shale gas
Sasol recently acquired 50% of Farrell Creek and Cypress A
One of the most prolific shale plays in North America
All year access and excellent infrastructure
Sasol/Talisman partnership on 108 000 total net acres land – circa 20 tcf of contingent resource
Sasol paid US$2bn for a 50% interest and will incur ~ US$14bn development cost over 10 years
Emerging liquids window
● One of the most prolific shale plays in
North America
● All year access and excellent infrastructure
● Sasol/ Talisman partnership on 108 000
total net acres land – circa 20 tcf of
contingent resource
● Sasol paid US$2bn for a 50% interest and
will incur ~ US$14bn development cost
over 10 years
● Emerging liquids window
Source: Talisman 2011
Alberta
British
Colombia
TLM land
Basin
Major pipeline
Sasol/TLM land
The feasibility study of a 96,000 bbl/d GTL facility in Canada has commenced
The feasibility study of a 96 000 bbl/d facility in Canada has commenced
36
contents
Pertinent global market trends
Sasol’s response to global market trends
SPI’s contribution to Sasol’s gas needs
Major acquisitions
Outlook on growth
37
SPI – outlook on growth …creating a geographically balanced growth portfolio will require us
to focus on emerging markets and outside current countries of operation…
North America
• Progressive optimisation
• Sustainable operation
• Significant cash
contribution for growth
elsewhere
Australia
• Deliver on Australia
strategy
Gabon
Maintain full asset
production
Southern Africa
•Botswana CBM
•Moz expansion
•TCP offshore
Zululand Basin
38
SPI – outlook on growth Consolidated production volumes (liquids and gas) equity share, risked
0
50
100
150
200
250
300
350
400
450
2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040
000
Bo
e/d
Gabon oil production Total condensate production
Mozambique gas production Farrell Creek gas production
Cypress gas production Range of Exploration Outcomes
Upper Range of Exploration Outcomes 2021 SPI target (270 000 Boe/d)
2021 SPI target (270 000 Boe/d)
Hard production
Canada projection (Farrell Creek + Cypress A)
Risked growth
Upside
39
Young, but well established
upstream player
Solid production growth track
record
Rapidly expanding global
portfolio
Access to proprietary GTL/CTL
technologies and capabilities
Unique and competitive value
proposition
with customised “product slates”
for local markets
SPI – outlook on growth The licence and capability to grow
40
SPI – outlook on growth Looking ahead…
Continue to grow our heartland in
Mozambique and our new position in
North America
Replicate our Mozambique success in
other emerging heartlands
Intensify exploration and new business
development activities in both
conventional and unconventional
(continued globalisation of upstream
portfolio)
Strategic partnerships (both operated
and non operated)
With continuous focus on safety,
health and environment,
Create sustainable relations with
community stakeholders