Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 61
Proved reserves (all quantities are net to Sasol)
South Africa
Our Mozambique proved reserves are
contained in the Pande-Temane PPA asset. These
represent the net economic interest volumes that are
attributable to Sasol after the deduction of petroleum
production tax. The primary sales product for the PPA
is natural gas, with minor amounts of associated liquid
hydrocarbons.
Licence terms
In South Africa, we have an interest in one
exploration licence.
Our subsidiary Sasol Africa (Pty) Ltd holds a
60% working interest (8 254,9 thousand undeveloped
net acres) in the ER236 licence, offshore in the Durban
Basin, which is operated by Eni South Africa BV.
Changes to proved reserves
There was a reduction of 270 billion cubic feet
in proved gas reserves due to production and a revision
of previous estimates largely as a result of a muchreduced gas price during the year.
Activities
Exploration
An environmental impact assessment for
future potential drilling activities in the block was
submitted to Petroleum Agency SA (PASA) and the
Environmental Authorisation was granted by relevant
authorities on 26 August 2019. The Environmental
Authorisation has been the subject of opposition by
Non-Government Organisations (NGOs), who
submitted an administrative appeal to the Minister of
DEFF, the Minister however dismissed the appeal and
upheld the Environmental Authorisation in a decision
dated 18 December 2020. On 15 June 2021, an nonprofit organisation, the South Durban Community
Environmental Alliance (SDCEA), served Sasol and
Eni with a Notice of Motion in respect of a Review
Application, seeking to set aside the decision to grant
the Environmental Authorisation. Sasol has since
decided to oppose the motion. A decision was made to
enter the third renewal Exploration Phase of the ER236
licence. The renewal application was lodged on 2
September 2021.
Changes to proved developed reserves
Proved developed gas reserves reduced by 298
billion cubic feet to 424 billion cubic feet. The
reduction was due to production of 114 billion cubic
feet and a downward revision of the previous estimate
by 184 billion cubic feet.
Proved undeveloped reserves converted to proved
developed reserves
No volumes were converted from proved
undeveloped to proved developed reserves during 2021.
Changes to proved undeveloped reserves
Proved undeveloped gas reserves increased by
28 billion cubic feet to 106 billion cubic feet due to a
revision of the previous estimate.
Capitalised exploratory well costs
Proved undeveloped reserves remaining
undeveloped
There were no exploratory well costs
capitalised in South Africa.
Proved undeveloped gas reserves, presently
estimated to be 106 billion cubic feet, have remained
undeveloped in the Pande-Temane PPA asset for the
last 15 years. The total proved volume (developed plus
undeveloped) represents gas that will be recovered as
part of the approved FDP and which is required to
satisfy existing gas sales agreements. In order to
optimise the timing of the capital expenditure required
to convert undeveloped reserves to developed reserves,
GSO regularly studies production performance and
reviews its plan for installation of additional
compression and wells.
Canada
Licence terms
In Canada, our subsidiary Sasol Canada
Exploration and Production Limited Partnership (SCEP
LP), held a 50% working interest in the Farrell Creek
and Cypress A asset located in British Columbia, which
is a producing asset with proved reserves at 30 June
2021. The asset is operated by Petronas Energy Canada
Ltd (PECL). Our Canadian assets were classified as
assets and liabilities in a disposal group held for sale at
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