Maputo, Mozambique – Sasol would like to clarify the facts around recent media reports pertaining to Recoverable Contract Costs under the Production Sharing Agreement (PSA) license which is still in the development phase.

As clearly stated in the government report, the audit of the recoverable costs pertaining to the PSA license for the period 2017 and 2018, started in June 2019 and is ongoing. This is disclosed in the Annual General State Account (page 30) which can be found at this link: http://www.mef.gov.mz/index.php/documentos/instrumentos-de-gestao/-21/conta-geral-do-estado-cge/cge-2019/899-conta-geral-do-estado-2019-anexos-informativos-volume-i/file

Preliminary reports were issued in order to obtain initial feedback and Sasol has submitted additional information in order to explain its contrary view of the preliminary findings. This information is still being analysed by the auditing entity. 

Recoverable Contract Costs refer to Exploration Costs, Development and Production Capital Expenditure, Operating Costs, Service Costs and General and Administrative Expenses which are used in the calculation of petroleum profit sharing between the shareholders as determined in the PSA. 

As the operator of the PSA, Sasol ensures that all costs are correctly accounted for, under the terms of the agreement between the shareholders and the Mozambican government. These costs are subject to audit by INP, the regulator, as per the PSA license. Once the audit is complete, INP will disclose a full and complete audit report. 

Sasol is an ethical corporate citizen and we are committed to continue developing Mozambican hydrocarbon resources for the benefit of the country, its people and all stakeholders.