Sasol Natural Gas Project signs up with Multilateral Investment Guarantee Agency.

Business Editors

JOHANNESBURG, South Africa--(BUSINESS WIRE)--Jan. 20, 2003

Petrochemicals group Sasol and Multilateral Investment Guarantee Agency (MIGA) - a member of the World Bank Group - have signed a US$72 million investment guarantee contract to protect the Mozambican part of Sasol's US$1.2 billion investment in the Sasol Natural Gas Project in Mozambique and South Africa.

The coverage provides protection against non-commercial risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract and is provided to Sasol for its equity investments in Sasol Petroleum Temane Limitada (SPT) and the Republic of Mozambique Pipeline Investment Company (Pty) Ltd (Rompco).

Pieter Cox, chief executive of Sasol says: "We are pleased to have MIGA as partner in the development of what is a landmark project in southern Africa. Our risk mitigation strategy for the project is in place and the MIGA facility is an important element of it."

The Sasol Natural Gas Project is making rapid progress with the development of the Pande and Temane gas fields in Mozambique, from where natural gas will be piped over 865km to Secunda in South Africa. This phase of the US$1.2 billion Sasol Natural Gas Project is scheduled for completion in October 2003 and gas will start flowing to Secunda by February 2004. It will also entail the feedstock conversion of the Sasolburg chemical complex from a coal based operation to natural gas.

MIGA's vice president for underwriting, Roger Pruneau says: "We are delighted to be offering support to a project that we expect to have a very high development impact in one of the world's poorest countries. In addition, this project meets a number of imperatives in terms of Nepad, especially development of Africa by Africans, as well as critical infrastructure development."

The project supports Mozambique's development strategy of promoting private sector development and is expected to:

-- help develop regional natural gas markets and enhance regional trade and stability

-- contribute to the Mozambican economy by providing significant revenues over the project's expected 25-year life

-- provide contracting opportunities for Mozambican and South African companies

-- create hundreds of jobs for local residents during project construction

-- contribute to infrastructure development through the addition of roads and removal of landmines in the project area.

Sasol, established in 1950, is a world-leader in the commercial production of liquid fuels and chemicals from coal and crude oil. The company has sales of more than US $6-billion per year and is listed on the JSE Securities Exchange (SOL) with a market capitalisation of more than US$7-billion and on NASDAQ (SASOY) in New York. Sasol manufactures more than 200 fuel and chemical products at its plants in Sasolburg and Secunda in South Africa as well as at several plants abroad. Its products are exported to more than 90 countries around the world. The company has developed world-leading technology for the commercial production of synthetic fuels and chemicals from low-grade coal as well as the conversion of natural gas to environment-friendly diesel and chemicals. Internet address: www.sasol.com