http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.90Change: 0.03
R/$ = 12.69Change: -0.01
Au 1084.08 $/ozChange: -7.37
Pt 949.00 $/ozChange: -17.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 17, 2006

Sasol plans R8,5bn capital expenditure in next six months

Back
Construction|Engineering|Africa|CoAL|Engen|Exploration|Gas|PROJECT|Projects|SECURITY|Water|Africa|Automotive|Energy|Environmental|Water
Construction|Engineering|Africa|CoAL|Engen|Exploration|Gas|PROJECT|Projects|SECURITY|Water|Africa|Automotive|Energy|Environmental|Water
construction|engineering|africa-company|coal|engen|exploration|gas|project|projects|security|water-company|africa|automotive|energy|environmental|water
© Reuse this Synfuels and chemicals company Sasol expects to spend R8,5-billion on capital projects in the next six months, the bulk of which will be in South Africa, Sasol CE Pat Davies has revealed.

Announcing an 86% increase in attributable earnings to R7,3-billion in the first half to December 31, 2005, Davies said that Sasol had spent R6,1-billion on capital projects in the period, 77% of it on projects in South Africa.

He expected to spend another R8,5-billion in the second half of the year.

Sasol planned to nurture and grow its South African assets, particularly its synfuels business, which it would like to see growing by 20% in the next ten years and had plans to achieve that, Davies said – but he was also excited about the company’s gas-to-liquids activities in Qatar, was upbeat about coal-to-liquids in China and would be visiting India this month, also on the coal-to-liquids potential. If one took only 10% of the coal reserves of China and converted those into oil-equivalent, it would equal the world’s proven oil reserves, he said.

China, thus, had all the oil it needed and South Africa the technologies to turn that coal into oil equivalent, which made the Chinese as excited about the coal-to-liquids prospect as Sasol was.

What was envisaged were 80 000-bpd-size plants, two at that size giving China Secunda-type capacity.

The company was undertaking two prefea- sibility studies in the US, encouraged by the US’s new Energy Policy Act.

Southern Gabon exploration continued to do well, but exploration in Equatorial Guinea was under review.

At home, the polymers project, Turbo, was suffering both internal-rate-of-return reduction and schedule pressure, costs hit by currency effects and lateness mainly the result of under-performance of engineering and construction contractors, for whom there were more jobs globally than there was capacity to carry out assignments.

Sasol had slipped its Turbo schedule, the bene-ficial operation of the two polymers plants shifting out the polyethylene plant to the third quarter and the polypropylene plant to the fourth quarter of this calendar year.

The cost of the polymers plant had risen to $9,1-billion and the total cost of Project Turbo, including the fuels portion, had risen to R14,3-billion, 7% higher than the numbers last revealed.

Overall, the cost was up 17% when the original cost estimate was compared to the current cost.

It was cold comfort that the cost surge was in line with global trends, a study of large projects showing overspends of 30% or more being common and schedules overshot by 30%.

Davies described Sasol’s gas effort in Mozam-bique as “a great business”, the company already being in a position to accommodate up to 183-million gigajoules a year, up from the current 120-million.

Sasol would also be exploring offshore, for which an environmental-impact study was in place. It had received approval from the Nigerian government to enter a second deep-water block, which already had a significant oil discovery.

“We are in a world that is energy hungry; oil prices are high and people are concerned about energy security,” Davies said.

That put Sasol in a “very sweet spot” because Sasol was producing the same automotive fuels that were in such high demand and Sasol was able to satisfy that need without having to use expensive crude oil, but far cheaper feed-stocks, such as coal and natural gas.

Davies said Sasol was disappointed by the Competition Tribunal’s prohibiting its merger with Engen and the consequent ruling out of the impowered Uhambo joint venture. It was in discussions with Petronas and its empowerment partners as to the way forward and would be making an announcement in the near future.
Edited by: Martin Creamer
Creamer Media Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
More
 
 
Latest News
Updated 18 minutes ago This eight-page brief is a synopsis of key developments in the electricity industry over the past 12 months, including details of South Africa’s constrained power system; State-owned power utility Eskom’s financial status and tariffs, capacity expansion programme,...
The Department of Labour (DoL) will on Tuesday start hosting a series of national public hearings to review the farming and forestry sectors’ minimum wages and conditions of employment as prescribed in Sectoral Determination (SD) 13. The department explained in a...
The Independent Communications Authority of South Africa (Icasa) on Monday announced that it was “eager” to “reinitiate” the licensing process for the assignment of the high-demand spectrum. Icasa, which was responsible for the allocation of spectrum to broadcasting...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96