Our operation in Papua New Guinea is located in a remote area, characterised by extensive wetlands.The associated logistics and environmental challenges  are actively managed in all aspects of our operations. rights in the Sofala and M-10 Blocks  adjacent to Blocks 16 and 19 and success  in either of these two new blocks could  possibly allow for Blocks 16 and 19 to  be developed further. In the offshore M-10 Block, we entered  into an agreement with Petronas, as a  strategic partner, and jointly acquired the  block on an equal 50% equity basis with  SPI as operator. SPI acquired 100% equity  of the Sofala Block. Subsequently, 15% in  each permit was offered to ENH, resulting  in an equity distribution for M-10 of  42,5% each for Sasol (operator) and  Petronas, with 15% for ENH. For Sofala,  85% of the equity went to Sasol  (operator) and 15% to ENH. The  acquisition of these two new blocks forms  an integral part of our strategy to grow  our gas heartland in Mozambique and  further strengthens our relationship with  the government and the people of  Mozambique. In the Etame oilfield cluster offshore  Gabon, production declined in the year.  Through SPI’s 27,75% share in this licence,  we recorded total oil sales in the year of  1,9 million barrels. We brought two new  wells in the satellite Ebouri fi eld into  production and are currently drilling an  exploration well in the southeast of the  Etame field. All of these activities are  aimed at sustaining our production levels  and extending asset life. We recently  renewed our exploration rights for the  SPI continues to build its capacity in  exploring – primarily shale gas and coal  bed methane (CBM). At the end of the  2010 financial year, SPI and partners  In Papua New Guinea, where we have four  petroleum prospecting licences, we have  successfully concluded seismic acquisition  and a number of prospects have matured.  The first will be drilled in early 2011. With  its purchase of Papua Petroleum Limited  in December 2009, Talisman Energy of  Canada became our 49% joint venture  partner in the licences we hold in Papua  New Guinea. In December 2009, SPI signed a farm-in  agreement for a 45% working interest  with Finder Exploration for a new licence,  Block AC/P 52 in Australia. We are also  finalising the interpretation of data  collected during a 3D seismic survey of  licence WA-388 in the Carnarvon Basin  offshore the Australian northwest shelf,  in which SPI has a 30% interest.  Apart from the exploratory drilling  offshore Mozambique and Gabon, SPI also  made progress in the year on plans to  extend our resource portfolio, with entry  into a new licence area in Australia.  permit area offshore Gabon until 2014  and also extended our production licences  for the satellite Avoumi field to 2025  and Ebouri to 2026. Chesapeake and Statoil were awarded a  petroleum technical cooperation permit  (TCP) to assess and quantify the  prospective shale gas resource in the  onshore Karoo Basin in South Africa.  Together, we plan to evaluate existing and  available geological information within  the area to determine the potential for  shale gas. SPI is also considering a number  of other non-conventional resources  opportunities elsewhere. During the year, we increased our  organisational capacity to prepare for  growth by actively recruiting more  specialist skills and investing in our people  through appropriate training programmes.  To support the Sasol strategic intent of  delivering on the transformation agenda  in South Africa, as well as our  commitment to develop skills in  Mozambique, we launched a programme  that provides individuals with an  opportunity to develop specifi c upstream  technical skills. We employ young  graduates with little or no work  experience and expose them to, and train  them in, specific upstream positions.  Four people are participating in this  initiative at the moment: three South  Africans and a Mozambican. A second  intake is being planned for early in the  new financial year. In 2010, many of our  people also completed a comprehensive  training programme on general legal  compliance. Exploring for non-conventional gas Skilling up our people Expanding our exploration  portfolio Renewing exploration licences in  West Africa annual review 2010 • operating reviews •  sasol petroleum international continued 47