Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 81
optimise liquids recovery. On 19 February 2021, the
Board approved the FID with an estimated project cost
of US$760 million. The project execution has been
delinked from CTT financial close and execution
commenced in quarter three of calendar 2021.
liability on a transaction-specific basis depending on
the individual facts and circumstances related to each
sale. Both the liability and expense related to product
warranties are immaterial to the consolidated financial
statements.
For information on amounts capitalised in
respect of these projects refer, “Item 18—Financial
Statements—Note 20 Property, plant and equipment”.
5.F Disclosure of contractual obligations
For information on future amounts expected to
be spent to complete the projects, refer “Item 18—
Financial Statements—Note 20 Property, plant and
equipment”.
The following significant undiscounted
contractual obligations existed at 30 June 2021.
Contractual obligations/commitments.
Total
amount
Contractual obligations
5.C Research and development, patents and licences
Bank overdraft . . . . . . . .
Capital commitments . . . .
Environmental and other
obligations(1) . . . . . . . .
External long-term debt(2) .
External short-term debt . .
Lease liabilities(2) . . . . . . .
Post-retirement healthcare
obligations(3) . . . . . . . .
Post-retirement pension
obligations(3) . . . . . . . .
Purchase commitments(4) .
Share-based payments . . .
Total . . . . . . . . . . . . . . .
Refer to the “Item 4.B—Business overview—
Factors on which the business is dependent—
Intellectual Property” for further information research
and development, patents and licences.
5.D Trend information
Refer to the “Integrated Report—Performance
Overview—Chief Financial Officer’s review” as
contained in Exhibit 99.3.
...
...
.
.
.
.
.
.
.
.
92 080
119 921
60
31 679
6 205
8 997
60
2 997
28 088
72 888
—
9 293
57 787
38 036
—
19 389
...
3 713
237
883
2 593
10 081
131 992
29
429 686
250
27 459
29
67 870
1 051
35 182
—
165 880
8 780
69 351
—
195 936
.
.
.
.
.
.
.
.
243
39 888
Within
1 to 5
More than
1 year
years
5 years
(Rand in millions)
243
—
—
21 393
18 495
—
.
.
.
.
.
.
.
.
(1)
Represents undiscounted obligation.
(2)
Include interest payments.
(3)
Represents discounted values.
5.E Off-balance sheet arrangements
We do not engage in off-balance sheet
financing activities and do not have any off-balance
sheet debt obligations, off-balance sheet structured
entities or unconsolidated affiliates.
(4)
Includes off‑take agreements entered into in the ordinary
course of business, the most significant of which relates to oxygen
supply agreements for Secunda Operations of R85 013 million (2020
- R36 998 million) and ORYX GTL of R1 748 million (2020 - R1
739 million) for a contracted minimum off-take gas volume. The
Oxygen Train 17 oxygen supply agreement runs to 2037, with an
option to renew the contract to 2050. The renewal option is not taken
into account in the calculation of the commitments. The Oxygen
Trains 1 – 16 arrangement is managed through various agreements,
including the Gas Sales Agreement (GSA), Utilities Agreement and a
suite of other contracts. In terms of the Utilities Agreement, Sasol is
contractually bound to buy oxygen and other derivative gasses from
Air Liquide annually, while Air Liquide is bound to buy utilities from
Sasol for the same amount for 15 years.
Guarantees
As at 30 June 2021, the group recognised
amounts in respect of certain guarantees. Refer to
“Item 18—Financial Statements—Note 40 Financial
risk management and financial instruments” for further
information on guarantees.
Product warranties
Refer to “Item 18—Financial Statements—
Note 20 Property, plant and equipment” for significant
capital commitments and “Note 33 Long-term
provisions”.
The group provides product warranties with
respect to certain products sold to customers in the
ordinary course of business. These warranties typically
provide that products sold will conform to
specifications. The group accrues for a warranty
80