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rights in the Sofala and M-10 Blocks adjacent to Blocks 16 and 19 and success in either of these two new blocks could possibly allow for Blocks 16 and 19 to be developed further. 

In the offshore M-10 Block, we entered into an agreement with Petronas, as a strategic partner, and jointly acquired the block on an equal 50% equity basis with SPI as operator. SPI acquired 100% equity of the Sofala Block. Subsequently, 15% in each permit was offered to ENH, resulting in an equity distribution for M-10 of 42,5% each for Sasol (operator) and Petronas, with 15% for ENH. For Sofala, 85% of the equity went to Sasol (operator) and 15% to ENH. The acquisition of these two new blocks forms an integral part of our strategy to grow our gas heartland in Mozambique and further strengthens our relationship with the government and the people of Mozambique. 

## Renewing exploration licences in West Africa 

In the Etame oilfield cluster offshore Gabon, production declined in the year. Through SPI’s 27,75% share in this licence, we recorded total oil sales in the year of 1,9 million barrels. We brought two new wells in the satellite Ebouri fi eld into production and are currently drilling an exploration well in the southeast of the Etame field. All of these activities are aimed at sustaining our production levels and extending asset life. We recently renewed our exploration rights for the 

permit area offshore Gabon until 2014 and also extended our production licences for the satellite Avoumi field to 2025 and Ebouri to 2026. 

## Expanding our exploration portfolio 

Apart from the exploratory drilling offshore Mozambique and Gabon, SPI also made progress in the year on plans to extend our resource portfolio, with entry into a new licence area in Australia. 

In December 2009, SPI signed a farm-in agreement for a 45% working interest with Finder Exploration for a new licence, Block AC/P 52 in Australia. We are also finalising the interpretation of data collected during a 3D seismic survey of licence WA-388 in the Carnarvon Basin offshore the Australian northwest shelf, in which SPI has a 30% interest. 

In Papua New Guinea, where we have four petroleum prospecting licences, we have successfully concluded seismic acquisition and a number of prospects have matured. The first will be drilled in early 2011. With its purchase of Papua Petroleum Limited in December 2009, Talisman Energy of Canada became our 49% joint venture partner in the licences we hold in Papua New Guinea. 

## Exploring for non-conventional gas 

SPI continues to build its capacity in exploring – primarily shale gas and coal bed methane (CBM). At the end of the 2010 financial year, SPI and partners 

Chesapeake and Statoil were awarded a petroleum technical cooperation permit (TCP) to assess and quantify the prospective shale gas resource in the onshore Karoo Basin in South Africa. Together, we plan to evaluate existing and available geological information within the area to determine the potential for shale gas. SPI is also considering a number of other non-conventional resources opportunities elsewhere. 

## Skilling up our people 

During the year, we increased our organisational capacity to prepare for growth by actively recruiting more specialist skills and investing in our people through appropriate training programmes. To support the Sasol strategic intent of delivering on the transformation agenda in South Africa, as well as our commitment to develop skills in Mozambique, we launched a programme that provides individuals with an opportunity to develop specifi c upstream technical skills. We employ young graduates with little or no work experience and expose them to, and train them in, specific upstream positions. Four people are participating in this initiative at the moment: three South Africans and a Mozambican. A second intake is being planned for early in the new financial year. In 2010, many of our people also completed a comprehensive training programme on general legal compliance. 

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