## sasol petroleum international 

 SPI develops and manages our upstream interests in oil and gas exploration and production in Mozambique, South Africa, Gabon, Nigeria, Papua New Guinea and Australia. It produces gas and condensate from Mozambique’s onshore Temane and Pande fields and oil from Gabon’s offshore Etame oilfield cluster. SPI pursues gas exploration opportunities to enable it to supply feedstock to potential future gas-to-liquids plants. 

## Preparing for growth 

Sasol Petroleum International’s activities are satisfying the Sasol group’s strategic objective of growing our upstream gas asset base. Securing additional natural gas resources will allow the group to leverage its proprietary technology by developing new gas-to-liquids (GTL) facilities. 

Global developments in the upstream gas sector have seen some signifi cant shifts in the last few years. The industry has experienced rapid growth in non-conventional gas (notably the development of significant shale gas resources in North America), lower natural gas prices and higher price differentials between oil and gas. These conditions are making the monetisation of gas resources though GTL more attractive and offer Sasol a unique competitive advantage. 

A key aspect in all our operations remains our strong focus on safety, health and the environment. In April 2010, SPI achieved more than two million man hours without a recordable injury, which shows that our efforts to proactively manage safety at all our locations and in all activities are bearing fruit. 

At year-end, we had a recordable case rate (RCR) of 0,08, significantly better than 0,34 in 2009. The challenge now, will be to maintain this world-class performance. 

While we grow our upstream asset base and activities, SPI continues to place environmental stewardship and corporate social responsibility high on the agenda. Continuously learning from international best practice in environmental protection and engaging with all our key stakeholders are central to creating a sustainable platform for growth. 

## Maintaining profi tability 

SPI recorded an operating profi t of R337 million in 2010, down from R1 115 million in 2009. The result was dampened by lower sales volumes from the Etame oilfield cluster in Gabon as well as the strength of the rand against the US dollar. Higher average oil and gas prices partially softened the effect of these negative influences. Total gas sales volumes from Mozambique increased marginally to 75,1 million Gigajoules (M GJ), while condensate sales decreased 62% to 173 987 barrels. Our total oil sales from Gabon were 5% down to 1,9 million barrels. Turnover decreased by 21%, mainly as result of the negative impact of the strong rand/US dollar exchange rate. 

## Stabilising our Mozambican heartland 

In Mozambique, where SPI produces gas and condensate from the Temane and 

Pande onshore gas fields, we maintained steady output in the year, despite reduced demand from customers resulting from the global economic slowdown. 

In 2010, SPI and its partners in Mozambique – Companhia Moçambicana de Hidrocarbonetos and the International Finance Corporation – produced and sold 107,4 M GJ of natural gas, compared with 106,8 M GJ in 2009. 

We continued work on the US$300 million expansion of our onshore gas production facilities in Pande and Temane to increase the annual production capacity to 183 M GJ from 120 M GJ. With this expansion, we aim to supply additional gas to customers in Mozambique and in South Africa, including Sasol Synfuels’ new gas-fired power generation project. We expect increasing gas production and downstream utilisation in 2011, when the central processing facility (CPF) expansion project will have been completed and will be ramping up progressively to 183 M GJ in the years that follow. 

In 2010, we completed a detailed study of the exploration drilling campaign in Blocks 16 and 19 offshore Mozambique. Both wells discovered gas, but because of reservoir complexity we do not expect to develop these wells in the near future. However, we have acquired exploration 

