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Sasol to sell stakes in Mozambique pipeline, power plant – sources

In bid to pay off its debt pile.
Image: Bloomberg

Struggling petrochemicals producer Sasol has appointed advisors to sell its stakes in a power plant in Mozambique and a gas pipeline running from the country into South Africa, two sources familiar with the matter told Reuters.

Sasol, the world’s top producer of motor fuel from coal, is trying to shed assets to pay off its debt pile and avoid a rights issue of up to $2 billion, but has not previously flagged the Mozambique assets as up for sale.

It has appointed South Africa’s Nedbank to manage the sale of its 50% stake in the Republic of Mozambique Pipeline Company (ROMPCO), the joint venture operating the pipeline that runs 865 kilometres from Mozambique into South Africa, the sources said.

“We do not comment on ongoing commercially sensitive and/or M&A processes and we do not react to market speculation,” a Sasol spokesman wrote in an email.

The sources said the company had also appointed Deloitte to sell its 49% stake in Central Termica de Ressano Garcia (CTRG), Mozambique’s first permanent large-scale gas power plant which, at a capacity of 175 megawatts, meets almost a quarter of the country’s energy demand, according to Sasol’s website.

Mozambique’s state-run National Hydrocarbon Company (ENH) and South Africa’s government-owned Central Energy Fund (CEF) each hold 25% stakes in ROMPCO.

ENH, CEF, and Deloitte did not immediately respond to requests for comment. Nedbank declined to comment.

The other 51% of CTRG is held by Mozambique’s state power utility EDM. EDM could not immediately be reached for comment.

As part of a business revamp, Sasol said last week it would cut jobs and exit West African oil operations.

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They have an exit plan.

a nudge in the right direction if you ask me: however, not running over time and over budget with the LCCP would have been preferable. Competence is what we, as shareholders, want; not smart plans to reduce for increasing debt. STOP MAKING DEBT by being incompetent in the first place.

There are many SA companies that would invest to own certainty of natural gas supply

Why do experts and advisors seemingly always have to be hired by these major corporations and governments? May as well get rid of all specialist departments and their specialist employees and hire expertise as and when needed.

Because the anc as major shareholder don’t have a clue how to manage and sustain a corporation….QED!

Odd that their brother “unionists” don’t make a peep as the anc agree to sell of state assets in this instance.

End of comments.





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