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Sasol divests from Gabon upstream oil assets, advancing Future Sasol strategy

Date: 
18 November 2020

Johannesburg, South Africa – Sasol Gabon S.A. (Sasol) and VAALCO Gabon S.A. (VAALCO) have signed a sale and purchase agreement (SPA) that will see VAALCO acquire Sasol’s 27.8% working interest in the Etame Marin block offshore Gabon (Etame). In addition, VAALCO is acquiring Sasol’s 40% non-operated participating interest in Block DE-8 offshore Gabon (DE-8). The effective date of the transaction is July 1, 2020 for a total cash consideration for both assets of US$44 million, subject to certain customary financial adjustments including cash flows attributable to the period from the effective date until the closing date. The SPA contains customary closing conditions including receipt of all necessary written consents, approvals or waivers, and provides for certain contingent payments of up to $6 million. Etame is a producing asset with proven reserves, while DE-8 is an exploration permit.

“This transaction marks another step towards Future Sasol. With our strategic repositioning, we made the decision to exit all upstream oil-based growth opportunities in West Africa, as we prioritise growth in specialty chemicals globally and focus on our Southern African energy business’ transition. We are pleased that VAALCO, our long-standing partner, has agreed to expand its interest and continue to nurture these assets,” said Paul Victor, Chief Financial Officer, Sasol Limited.

 

Sasol may, in this document, make certain statements that are not historical facts that relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
 
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year 30 June. Any reference to a calendar year is prefaced by the word “calendar”.