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Sasol - News Release

Release Date: 09/06/1999 14:06:31      Code(s): SOL SOLD
9 JUNE 1999
SASOL AND CHEVRON PURSUE GLOBAL GAS-TO-LIQUIDS JOINT VENTURE
- GAS-TO-LIQUIDS VENTURE IN NIGERIA GOING AHEAD
- COMPANIES SET THE PACE FOR ENVIRONMENT-FRIENDLY FUELS OF THE FUTURE
- SASOL INVITED TO PARTICIPATE IN UPSTREAM OIL & GAS EXPLORATION OPPORTUNITIES
SASOL AND CHEVRON SIGNED A MEMORANDUM OF UNDERSTANDING TODAY FOR THE CREATION
OF A NEW GLOBAL ALLIANCE TO IMPLEMENT VENTURES BASED ON SASOL'S GAS-TO-LIQUIDS
(GTL) TECHNOLOGY.
THE MEMORANDUM OF UNDERSTANDING WAS SIGNED ON BEHALF OF THE TWO COMPANIES BY
PIETER COX, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER OF SASOL LIMITED AND
RICHARD MATZKE, PRESIDENT OF CHEVRON OVERSEAS PETROLEUM INC.
PIETER COX SAID: THIS IS AN IMPORTANT MILESTONE IN SASOL'S GLOBALIZATION
PROGRAMME. WE ARE EXCITED ABOUT THE MYRIAD OF OPPORTUNITIES MADE POSSIBLE VIA A
GLOBAL ALLIANCE WITH CHEVRON. CHEVRON HAS ALSO INVITED SASOL TO PARTICIPATE IN
SEVERAL UPSTREAM OIL AND GAS EXPLORATION OPPORTUNITIES, INCLUDING AN AREA OF
MUTUAL INTEREST AGREEMENT FOR OFFSHORE WEST AFRICA. THERE ARE NUMEROUS
SYNERGIES BETWEEN SASOL AND CHEVRON THAT WILL ENABLE THE ALLIANCE TO ACCELERATE
THE IMPLEMENTATION OF GTL VENTURES AND WE ARE CONFIDENT THAT THIS JOINT VENTURE
WILL FURTHER STRENGTHEN SASOL'S POSITION AS THE WORLD-LEADER IN FISCHER-TROPSCH
TECHNOLOGY.
THE PROPOSED GLOBAL JOINT VENTURE BROADENS AN EXISTING RELATIONSHIP BETWEEN
SASOL AND CHEVRON, ESTABLISHED WITH THE ANNOUNCEMENT IN APRIL LAST YEAR OF A
JOINT FEASIBILITY STUDY TO IMPLEMENT A GTL, PLANT IN NIGERIA. THE FACILITY WILL
BE CAPABLE OF CONVERTING NATURAL GAS INTO SYNTHETIC CRUDE OIL, WHICH WILL BE
FURTHER PROCESSED INTO COMMERCIAL PRODUCTS, PRIMARILY HIGH-QUALITY,
ENVIRONMENTALLY SUPERIOR DIESEL AND NAPHTHA PRODUCTS. THE INITIAL FEASIBILITY
STUDY HAS SINCE BEEN EXPANDED TO INCREASE TARGET PRODUCTION FROM 20 000 TO 30
000 BARRELS PER DAY. COX SAID: WE ARE CONFIDENT THAT THE PROJECT WILL BE
SANCTIONED BEFORE THE END OF THIS YEAR, WHEN DESIGN WORK SHOULD COMMENCE TO
ALLOW THE PLANT TO COME ON STREAM IN 2003.
THE GLOBAL JOINT VENTURE BETWEEN SASOL AND CHEVRON WILL BUILD ON THE FOUNDATION
LAID BY SASOL, WHO IS ALREADY INVOLVED IN ADVANCED STAGES OF FEASIBILITY
STUDIES FOR SEVERAL GTL VENTURES. PROPRIETARY TECHNOLOGIES FROM BOTH COMPANIES
WILL BE USED: SASOL'S SLURRY PHASE DISTILLATE TECHNOLOGY AND CHEVRON'S
ISOCRACKING (TM) TECHNOLOGY. IT WILL BUILD ON THE TECHNICAL STRENGTHS OF EACH
COMPANY IN INTERNATIONAL UPSTREAM GAS DEVELOPMENT AND THE PRODUCTION AND
MARKETING OF GTL PRODUCTS. IN ADDITION TO THE ADVANTAGES OF GAS OPPORTUNITIES
FOR SASOL AND CHEVRON, THE ALLIANCE WILL ALSO OFFER INNOVATIVE GTL SOLUTIONS
FOR COMMERCIALIZING GAS RESOURCES WITH OTHER PARTNERS WORLDWIDE. THE EXPERIENCE
AND TECHNOLOGIES OF BOTH COMPANIES WILL CONTRIBUTE TO REDUCED DEVELOPMENT COSTS
AND ACCELERATE THE USE OF SASOL'S GTL TECHNOLOGY WORLDWIDE.
SASOL'S EXISTING GTL-RELATED AGREEMENTS WITH OTHER COMPANIES WILL CONTINUE
INDEPENDENTLY OF THE GLOBAL JOINT VENTURE WITH CHEVRON.
SASOL'S GAS-TO-LIQUIDS TECHNOLOGY OFFERS MOST PROMISING PROSPECTS FOR THE
MARKETING OF ENVIRONMENT-FRIENDLY FUELS IN THE 21ST CENTURY. REFERRING TO THE
ENVIRONMENTAL BENEFITS OFFERED BY THE GTL PROCESS, COX COMMENTED: NEVER BEFORE
HAS THE OIL INDUSTRY FACED SUCH ENVIRONMENTAL CHALLENGES IN BOTH ITS OPERATIONS
AND ITS PRODUCTS. NOT ONLY DOES SASOL'S GTL PROCESS OFFER A CLEAN SOLUTION TO
AN OTHERWISE WASTED NATURAL RESOURCE, BUT GTL-FUELS ARE ALREADY BEING HERALDED
AS THE NEW GENERATION CLEAN FUELS OF THE FUTURE. WITH THE EVER-INCREASING
DEMAND FOR ENVIRONMENT-FRIENDLY ENERGY, OUR HIGH QUALITY, SULPHUR-FREE,
AROMATIC-FREE FISCHER TROPSCH FUELS WILL NOT ONLY CHALLENGE CURRENT STANDARDS,
BUT WILL ALSO ESTABLISH NEW BENCHMARKS FOR THE FUELS INDUSTRY.
RICHARD MATZKE SAID: GAS-TO-LIQUIDS TECHNOLOGY IS SO PROMISING THAT ITS
DEVELOPMENT COULD CREATE AN ENTIRE PARADIGM SHIFT THROUGHOUT THE PETROLEUM
INDUSTRY. THERE ARE TRILLIONS OF CUBIC FEET OF NATURAL GAS THROUGHOUT THE
WORLD, ISOLATED FROM THE TRADITIONAL GAS INFRASTRUCTURE. WE BELIEVE APPLICATION
OF GTL TECHNOLOGY WILL BECOME THE PREFERRED METHOD TO COMMERCIALIZE SUCH
NATURAL GAS RESOURCES. EQUALLY IMPORTANT, THIS ALLIANCE HAS THE POTENTIAL TO
DELIVER MARKET-BASED, ECONOMIC SOLUTIONS TO REDUCE THE NEED TO ROUTINELY FLARE
ASSOCIATED GAS, CREATING WHAT WE SEE AS A WIN/WIN/WIN SITUATION.
ENDS
CONTACT PERSONS:
SASOL             ALFONSO NIEMAND
                  TEL +27-OLL- 441 3218
                  JOHANNESBURG
                  MANAGER : COMMUNICATIONS
                  ALFONSO.NIEMAND@SASOL.COM
CHEVRON:          SOLA 0MOLE
                  HEAD OF PUBLIC AFFAIRS
                  SAOM@CHEVRON.COM



                                        
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