Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 46
related to the divestment. As part of the divestment
transaction, a long-term oxygen off-take agreement,
which was signed with Air Liquide. In addition, Sasol
and Air Liquide have agreed to collaborate in the
procurement of renewable energy. Together, the parties
will pursue the procurement of 900MW of renewable
energy by 2030, which is a significant increase from
Sasol’s original 600MW commitment.
power purchase agreement with EDM. The agreements
commenced on 27 February 2015 and are valid for 20
years. On 20 December 2020, we signed a sale
securities purchase agreement with Azura Power
Limited for the divestment of our full shareholding in
CTRG. The transaction is subject to a number of
conditions precedent, which include regulatory
approval and the waiver of pre-emption rights held by
EDM, the Mozambican state-owned electricity
company.
On 9 July 2021, SSA concluded an agreement
to sell its sodium cyanide business to a South African,
B-BBEE empowered subsidiary of a Czech Republicbased company specialising in cyanide production. The
transaction is expected to close in the first half of
calendar 2022 (subject to customary closing
adjustments). The acquirer will take over full
operational control of the cyanide business. Key
feedstocks, utilities and site services will be supplied by
Sasol on an arm’s length basis.
ROMPCO is owned by SSA, with 50%; the
South African Gas Development Company SOC
Limited (iGas) a subsidiary of the Government of South
African-owned Central Energy Fund (CEF), with 25%;
and Companhia Moçambicana de Gasoduto SA
(CMG), a subsidiary of Government of Mozambiqueowned ENH, with 25%. ROMPCO transports natural
gas from the Pande and Temane gas fields in
Mozambique to markets in Mozambique and South
Africa via the Mozambique-Secunda gas transmission
pipeline (MSP). On 14 May 2021, SSA concluded a
sale and purchase agreement to sell a 30% equity
interest in ROMPCO, which was subject to pre-emptive
rights by the other shareholders. CMG and iGas
exercised their pre-emptive rights on 25 June 2021 and
the sale will therefore be concluded with CMG and
iGas. SSA will retain a 20% shareholding in ROMPCO
and will continue to operate and maintain the pipeline.
On 1 December 2020, Sasol closed a
transaction creating a joint venture with LyondellBasell
Offtake, LLC called Louisiana Integrated Polyethylene
JV LLC (LIP JV). In this transaction, Sasol transferred
certain production units at the LCCP to LIP JV and sold
50% of the shares of LIP JV to LyondellBasell. At the
same time, both Sasol and LyondellBasell and certain
affiliates entered into a series of related agreements
providing various services to each other and to LIP JV,
one of which was the marketing agreement with
Equistar Chemicals, an indirect subsidiary of
LyondellBasell. Equistar will market and sell Sasol’s
polyethylene along with LyondellBasell polyethylene
manufactured by the LIP JV production units.
In October 2019, Sasol announced its intention
to form a new explosives partnership with Enaex S.A.
On 30 June 2020, Sasol concluded the transaction to
sell 51% share in the business to Enaex S.A. On 1 July
2020, Enaex Africa (Pty) Ltd, in association with Sasol,
officially started operating in South Africa and on the
African continent. As part of the transaction, SSA
signed a 20-year product supply agreement with Enaex
Africa (Pty) Ltd for ammonium nitrate. On 8 April
2021, SSA concluded an amended shareholders and
share sale agreement to sell a 26% equity interest in
Enaex Africa (Pty) Ltd to Afris Subco (Pty) Ltd, a
subsidiary of Africa Rising Explosives (Pty) Ltd (a BBBEE partner), subject to certain conditions precedent.
On 14 May 2021, all conditions precedent were met.
SSA retains a 23% shareholding in Enaex Africa (Pty)
Ltd.
In Gabon, our subsidiary Sasol Gabon S.A.
completed the sale of its 27,75% working interest in the
Etame Marin Permit (EMP) asset to VAALCO Gabon
S.A., the operator of the asset, on 25 February 2021. In
addition, Sasol Gabon S.A. completed the sale of its
40% working interest in the DE -8 permit offshore
Gabon to Perenco Oil & Gas Gabon S.A, the operator
of the asset, on 4 May 2021.
On 22 June 2021, Sasol Investment Company
(Pty) Ltd (SIC) concluded a share sale and purchase
agreement pursuant to which the buyer agreed to
acquire all of the shares of Sasol Canada Holdings
Limited (SCHL) and Sasol Canada Exploration and
Production Limited (SCEPL). SCHL and SCEPL
collectively own the partnership units of Sasol Canada
Exploration and Production Limited Partnership, which
holds a 50% general partnership interest in the Petronas
Sasol Montney Partnership (PSMP) and a 50%
On 28 July 2020, Sasol announced that an
exclusive negotiation agreement had been signed with
Air Liquide Large Industries South Africa (Pty) Ltd for
the sale of its 16 air separation units (ASUs) located in
Secunda. The sale became effective on 24 June 2021,
following the conclusion of all suspensive conditions
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