Sasol sells its gas-to-liquids plant in Nigeria
Sasol and Chevron have signed an agreement that will result in Sasol selling its indirect beneficial interest in the Escravos GTL (EGTL) plant in Nigeria to Chevron. The transaction will release Sasol from associated company guarantees and other obligations.
Sasol will continue to support Chevron in the performance of the EGTL plant through ongoing catalyst supply, technology and technical support.
The transaction has an agreed economic effective date of 1 September 2019.
In October 2019 Sasol announced its intention to form a new explosives partnership with Enaex S.A. Sasol has concluded the transaction to sell a 51% share in the business to Enaex, and on 1 July 2020, Enaex Africa in association with Sasol, will officially start operating in South Africa and on the African Continent.
Divestment processes are well underway with respect to Sasol’s equity interests in the Republic of Mozambique Pipeline Investment Company (Pty) Ltd (ROMPCO) pipeline and the Central Termica de Ressano Garcia (CTRG) gas-fired power plant in Mozambique, and partnering discussions in relation to the Base Chemicals assets in the USA are far advanced.
These transactions form part of Sasol’s accelerated divestment programme to streamline its portfolio by focusing on core assets, which will enable Sasol’s repositioning over the following 24 months.
Further updates on these and other disposals Sasol will provide as and when appropriate.
Sasol refers to the cautionary announcements released on the Stock Exchange News Service on 17 March 2020 and 31 March 2020, outlining a comprehensive response strategy designed to mitigate the impact of COVID-19 and a lower oil price.
The strategy includes a cash conservation programme, an accelerated and expanded asset disposal programme, as well as a potential rights issue of up to US$2 billion which remains subject to the progress of other initiatives.
Sasol shareholders are advised that implementation of the response strategy is underway, the outcome of which may have a material effect on the price of the Company’s securities.
Accordingly, shareholders are advised to continue exercising caution when dealing in the Company’s securities until full announcements on the asset disposal programme and the potential rights issue are made.