Sasol Petroleum International (PTY) Limited Offshore Nigeria Asset Divestment September 2010
Nigeria OML 140 & OPL 214 Offshore Niger Delta
Sasol Petroleum International (PTY) Limited intends to divest its entire interest in its offshore Nigeria portfolio. This offering constitutes an exciting opportunity to acquire a balanced package of non-operated interests, which include both significant development projects and a large exploration portfolio.
Sasol Petroleum International (PTY) Limited Offshore Nigeria
Sasol Petroleum International (PTY) Limited (“Sasol”) has engaged FirstEnergy Capital LLP (“FirstEnergy”) as its exclusive financial advisor for the divestment of its interests in Nigeria blocks OML 140 and OPL 214. Sasol Petroleum International (PTY) Ltd is part of Sasol Limited, a JSE and NYSE listed group of companies. The interests held by Sasol are located in the prolific deepwater offshore Niger Delta region. In addition to a large number of exploration prospects, the offering includes a stake in the significant BSWAp, Nsiko, Orso and Uge oil discoveries. Discovered recoverable resources are estimated to be 19.1 MMbbl net to Sasol.
Key Opportunity Highlights Strategic Opportunity • Opportunity to acquire or augment an existing Nigerian portfolio by acquiring a package of non-operated interests in the prolific offshore Niger Delta area • Balanced portfolio of development and exploration assets • Low working interest provides exposure to world class development and exploration potential
with
manageable
CAPEX
exposure • Strong operators with proven track records in the deep water offshore Nigeria environment
Proven Reserves and Discoveries • Independent verification of resource numbers by RPS Energy a recognised technical expert (2010) • Participation in the BSWAp development (P50 : 941 MMboe gross recoverable resources), located close to the greater Bonga production hub and operated by Shell (SNEPCO) on behalf of NNPC • Material discoveries include Nsiko field (Gross resources P50: 289 MMboe) Uge field (Gross resources P50: 268 MMbbl) and Orso field (Gross resources P50: 10 MMbbl)
Additional Exploration Upside • Oil and gas prone exploration targets in basin with proven petroleum systems or basins with nearby analogous discoveries • Significant portfolio of prospects and leads with combined unrisked, gross, prospective resources of approaching 2 Bn boe (RPS Energy, 2010)
OML 140
OML 140 Prospect Map
• Sasol holds a 2% Working Interest (“WI”) / 5%
Bonga North
Participating Interest (“PI”)
OPL248
OPL 322
• Block operated by Chevron (38% WI)
OPL 285N
OML118 Bonga NW
• Located in water depths 1,200-3,000 m
Bonga
Bonga SW Nsiko NS
• Block operated under PSC regime, effective date 6th May 2003, covering 1,132 km2
Nsiko N
Discoveries
OPL 324
Bonga South West and Aparo (“BSWAp“)
Northern FB Central FB
10 km
Aguinyi
OML 132
Southern FB
OML 140 25 km
• Extension into OML 140 confirmed in 2003 by the
Aparo
Nsiko S
Sand Shark
Aparo-3 appraisal well • Pre-unitisation agreement in place, assigning 7.5% to OML 140 (P50: 941 MMboe Gross)
OPL 326
OPL 214
OPL250
OPL 2011
• Draft development plan (turret moored FPSO and subsea well development) complete, further engineering studies ongoing.
Nsiko • Nsiko-1 discovery well drilled 2003 and found net pay in multiple oil columns • Field delineated by Nsiko 2 (2004) and Nsiko 3 (2004) wells • Estimated 617 MMbbl STOIIP, and 289 MMboe recoverable resources (gross, P50) • Although discovery is proximate to BSWAp discovery, Nsiko field is considered too large for joint development • Provisional FDP submitted and approved with FID in 2013 and first oil expected ea. 2017 • Production concept is to use subsea wells with a dedicated FPSO, oil export by tanker and gas by pipeline.
Additional Prospectivity • Several prospects and leads identified and undergoing evaluation • Nsiko hub could act as a host for future discoveries
Status and Work Commitments
OML 140 Discovered and Prospective Resources In Place Oil (unrisked Gross, MMbbl)
• Following successful completion of the exploration phase, block converted from OPL 249 to OML 140 in 2009 • Additional exploration well to be drilled in 2011 • Ongoing development studies
Past Costs
Recoverable Oil (Gross MMboe)
Prospect
Maturity
P50
P10
P50
P10
BSWAp
Discovery
2930
3629
941
1345
Nsiko
Discovery
617
843
289
518
Nsiko North
Prospect
83
123
51
91
Nsiko South
Prospect
27
56
18
41
Sand Shark
Prospect
43
72
27
53
Aguinyi
Lead
500
1396
300
1024
• Past costs have totalled $18.8MM to date (net to Sasol)
Source: RPS Energy – June 2010
OPL 214
OPL 214 Location Map
• Sasol holds a 5% WI / 5% PI • Block operated by ExxonMobil (20% WI) • Located in water depths between 800 and 2,000 metres • Block operated under PSC regime, effective date 13th June 2002, covering 2,734km2
Discovery Uge Field • Uge-1 discovery well drilled in 2005 encountering oil and gas in 8 Miocene/ Pliocene reservoirs • Estimated 677 MMbbl STOIIP, and 268MMbbls recoverable oil (gross) • Development studies initiated by operator, with concept development utilising subsea wells producing to a dedicated FPSO oil export by tanker and gas re-injected
Orso Field • Orso-1 discovery well drilled in 2008 successfully targeting primary Miocene and Upper Oligencene distributory channel complexes • Estimated 10 MMbbl recoverable oil (gross)
Status and Work Commitments
OPL 214 Additional Prospectivity In Place Oil (unrisked Gross, MMbbl)
• Phase 1 (Years 1-4) Acquire and process1500 km2 3D seismic and drill one well - complete • Phase 2 (Years 5-7) Acquire and
Recoverable Oil (MMbbl)
Prospect / Lead
Maturity
P50
P10
P50
P10
Uge Field
Discovery
677
880
268
387
Orso
Discovery
-
-
10
-
Uge North
Prospect
243
358
87
143
process 1000 km2 3D seismic and drill
Uge Main Zanclean
Prospect
209
337
73
118
one well – complete
Nza West Tortonian
Lead
148
348
-
-
Nza West West Piacenzian
Lead
66
170
-
-
Udele
Lead
149
297
52
104
Ichokwu East
Lead
160
263
56
92
Uge Far South
Lead
83
140
29
49
• Phase 3 (Years 8-10) Drill one well ongoing
Past Costs • Past costs have totalled $19.5MM to date (net to Sasol)
Source: RPS Energy, (June 2010), Except Uge North: Operator
Offering Sasol’s preference is to conduct a single transaction for both blocks which includes the entire offered portfolio on the basis of a cash consideration, an asset swap or a combination of the above.
Transaction Process Having signed a Confidentiality Agreement, interested parties will be provided with an Information Memorandum and will also be provided with access to the online data room. A physical data room with access to a seismic workstation will also be available at FirstEnergy’s London office. Online Data Room Open
11th October 2010
Physical Data Room Open
11th October 2010
Bid Date (with marked up SPA)
30th November 2010
Offers to remain Open Until
19th December 2010
Cautionary Statement This document contains statements about expected or anticipated future events and financial results that are forward‐ looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management’s capacity to execute and implement its future plans. Actual results may differ materially from those projected by management.
For more information please contact: Mark Llamas Managing Director Acquisitions & Divestitures +44 (0) 20 7448 0224
[email protected]
Rolf Bakker Vice President & Director Acquisitions & Divestitures +44 (0) 20 7448 0225
[email protected]
Paul Bannister Associate Acquisitions & Divestitures +44 (0) 20 7448 0241
[email protected]
UNDER NO CIRCUMSTANCES SHOULD SASOL PERSONNEL BE CONTACTED DIRECTLY WITHOUT THE PRIOR KNOWLEDGE AND APPROVAL OF FIRSTENERGY All images contained in this document are sourced from the Operator unless stated otherwise
FirstEnergy Capital LLP is a limited liability partnership registered in England and Wales. Registration number: OC346410 Registered Office: 85 London Wall, London EC2M 7AD, United Kingdom Authorised and regulated by the Financial Services Authority