http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.70Change: -0.13
R/$ = 10.64Change: -0.09
Au 1292.20 $/ozChange: 8.83
Pt 1407.50 $/ozChange: 4.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 17, 2006

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

Back
Engen|Sasol|China|Equatorial Guinea|Gabon|India|Qatar|South Africa|United States|USD|Chemicals|Gas-to-liquids Activities|Oil|Oil Equivalent|Oil Reserves|Pat Davies
engen|sasol|china|equatorial-guinea|gabon|india|qatar|south-africa|united-states|usd|chemicals|gastoliquids-activities|oil|oil-equivalent|oil-reserves|pat-davies
© 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
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other News This Week News
Human Settlements Minister Connie September
The Estate Agency Affairs Board (EAAB) and the Department of Human Settlements launched the ‘One Learner – One Estate Agency’ internship programme aimed at creating one internship position at each of the estimated 10 000 estate agencies in South Africa to grow...
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
More
 
 
Latest News
Updated 2 minutes ago The KwaZulu-Natal (KZN) Department of Transport on Thursday announced a 77.3 km, R1.2-billion road upgrade that would connect Pongola and eDumbe, in the north western part of the province. The project, of which the first 6.5 km, R65-million, construction phase had...
Updated 30 minutes ago Corobrik has secured the Diamond Arrow Award for the fourth consecutive year after survey respondents in the construction industry rated the brick supplier ahead of the pack. Last week, PMR.africa presented the award to Corobrik after the supplier achieved the...
Updated 32 minutes ago South African producer price inflation (PPI) again surpassed expectations in March, registering growth of 8.2% year-on-year from the 7.7% recorded in February, climbing to its highest level since February 2012 on the back of rising domestic price pressures, BNP...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
Human Settlements Minister Connie September
The Estate Agency Affairs Board (EAAB) and the Department of Human Settlements launched the ‘One Learner – One Estate Agency’ internship programme aimed at creating one internship position at each of the estimated 10 000 estate agencies in South Africa to grow...
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
 
 
 
 


 
 
 
 
 
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