Johannesburg, South Africa – In 2017 Sasol commenced a detailed asset review to ensure all assets in the company’s global portfolio deliver against stringent financial metrics.
In line with this review, Sasol’s explosives business was identified as having tremendous growth potential that could be unlocked through collaboration opportunities, including the possibility of partnering with a world-class explosives brand.
Following a stringent evaluation process, Enaex S.A., a subsidiary of the Sigdo Koppers Group, was selected as Sasol’s preferred partner to engage with, for the possible formation of a joint venture, with the partner taking responsibility for the management and operational control of a new joint venture, should it be formed.
The preferred partner was selected based on its track record and potential to create a best in class technical service supplier, offering a one-stop-shop for explosives and blasting solutions.
As part of the exclusive negotiations phase, the potential partner will be required to continue to ensure reliable and sustainable ammonia off-take for Sasol South Africa, maintain Sasol’s leading safety record, and finally, be in a position to offer existing Sasol explosives employees career opportunities in a truly global, focused and growing explosives business.
This transaction is subject to successful negotiations with the exclusive partner, and external approvals, including that of the South African Competition Commission.
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”.