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Sasol to acquire biggest wax maker
The Competition Tribunal has given the go ahead for Sasol to acquire the remaining 33.3% interest in Schumann Sasol International, the biggest wax maker in the world, for Euro49m. Sasol already holds the other 66.7% of the German based company, which has not been performing as well as it might, partly because of the strained relations between the two shareholders, Sasol and the Schumann family. The acquisition is not only expected to bring synergies and savings, but would also enable Sasol to regain total control of Fischer-Tropsch technology, which underpins its operations. The Schumann-Sasol partnership was established in Dec 1994, with a merger between the Schumann family's wax business and Sasol Waxes.
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Sasol extension request examined
The Competition Commission is examining a request by Sasol for an 18 month extension to the company's controversial supply agreement with other oil companies, after government backed the move. This was announced by Trade Minister Alec Erwin, who backed Sasol's request for breathing space until the end of 2003. This would allow an orderly transition to a new regime, in which Sasol plans to become a major force in the SA fuel retail market. The supply agreement dates back to the protectionist 1970's, and obliges Sasol's customers to take delivery inland of a fixed percentage of their fuel purchases, even if their main markets are at the coast. It also includes strict payment schedules. In its defence Sasol has argued that its supply contract was negotiated with its customers, and will end at the beginning of 2004. The supply agreement was noted to be in breach of the 1998 Competition Act. However, it was announced that Erwin and the minerals and energy department had judged the extension of the agreement to be required for the economic stability of the industry. Erwin has designated the fuel industry, a legal way of allowing its exemption from the Competition Act, although the final decision will be taken by the commission.
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Sasol gas project could create 1 000 new jobs
The Natural Gas Project, a joint venture between Sasol, the SA government, and its Mozambican counterpart was launched with the hope that it would create about 1 000 new jobs during the three-year construction period. Sasol's chief executive, Pieter Cox, said the agreement was significant as it represented a step towards achieving the vision of Africa's renewal. The project, which consists of a major gas field development in Mozambique and a pipeline of about 865km to Secunda, is expected to bring gas to South Africa during the first half of 2004. The project is expected to bring significant benefits to both countries. Energy analysts said Mozambique's GDP stood to increase by more than 20% once the project kicks off. Industries in Gauteng and KwaZulu-Natal would also benefit from this deal.
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Sasol seeking natural gas fields along west coast
Energy companies Shell SA and Sasol are competing to exploit the natural gas fields along the west coast of SA and Namibia. Both have plans to develop a pipeline from these fields to the western Cape, although Shell SA has the advantage of already controlling the Kudu gas field off Namibia. Sasol is still searching for gas in a 28395kmē area known as Block 3A/4A along the west coast, and the company expects the results of a three-dimensional seismic survey conducted in Block 3A/4A to be completed in Jun 2002. If Sasol's findings are positive it would immediately look for partners to proceed with the project, which could lead to the development of a gas field and the installation of a pipeline to Cape Town, at an estimated cost of about USD500m. Should Sasol go ahead with the project, it will be the second large natural gas development it launched in southern Africa, following the start of construction of R14bn pipeline from Mozambique to SA in the past week.
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Sasol pipeline will give alternative to coal
The construction of the R14bn Sasol pipeline, that will transport natural gas from Mozambique to SA, will provide the petrochemical company with an alternative to coal as a source product for its range of synthetic fuels. A ceremony on 3 May 02 celebrating the start of the construction for the 850km pipeline from the Temane gas field in the Inhambane Province in Mozambique to Secunda in Mpumalanga, was attended by President Thabo Mbeki and Mozambican President Joaquim Chissano. Sasol did not give specific figures on how much revenue it expected to generate from the project, but its CE Pieter Cox said he expected the pipeline to deliver positive returns over its lifetime. The pipeline, which is expected to be completed in 2004, will increase Mozambique's gross domestic product by more than 20% and create close to 1 000 jobs. The pipeline will be owned in a joint venture between Sasol and the governments of SA and Mozambique. The parties have also made provision for the future inclusion of black economic empowerment shareholders as well as privatisation initiatives.
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