sasol petroleum international Preparing for growth Maintaining profi tability Stabilising our Mozambican  heartland  SPI develops and manages our upstream interests in oil and gas exploration  and production in Mozambique, South Africa, Gabon, Nigeria, Papua New  Guinea and Australia. It produces gas and condensate from Mozambique’s  onshore Temane and Pande fields and oil from Gabon’s offshore Etame  oilfield cluster. SPI pursues gas exploration opportunities to enable it  to supply feedstock to potential future gas-to-liquids plants. Sasol Petroleum International’s activities  are satisfying the Sasol group’s strategic  objective of growing our upstream gas  asset base. Securing additional natural gas  resources will allow the group to leverage  its proprietary technology by developing  new gas-to-liquids (GTL) facilities.  Global developments in the upstream  gas sector have seen some signifi cant  shifts in the last few years. The industry  has experienced rapid growth in  non-conventional gas (notably the  development of significant shale gas  resources in North America), lower natural  gas prices and higher price differentials  between oil and gas. These conditions are  making the monetisation of gas resources  though GTL more attractive and offer  Sasol a unique competitive advantage. A key aspect in all our operations remains  our strong focus on safety, health and the  environment. In April 2010, SPI achieved  more than two million man hours without  a recordable injury, which shows that our  efforts to proactively manage safety at all  our locations and in all activities are  bearing fruit.  At year-end, we had a recordable case rate  (RCR) of 0,08, significantly better than  0,34 in 2009. The challenge now, will be  to maintain this world-class performance. While we grow our upstream asset base  and activities, SPI continues to place  environmental stewardship and corporate  social responsibility high on the agenda.  Continuously learning from international  best practice in environmental protection  and engaging with all our key stakeholders  are central to creating a sustainable  platform for growth. SPI recorded an operating profi t of  R337 million in 2010, down from  R1 115 million in 2009. The result was  dampened by lower sales volumes from  the Etame oilfield cluster in Gabon as well  as the strength of the rand against the  US dollar. Higher average oil and gas  prices partially softened the effect of  these negative influences. Total gas sales  volumes from Mozambique increased  marginally to 75,1 million Gigajoules  (M GJ), while condensate sales decreased  62% to 173 987 barrels. Our total oil  sales from Gabon were 5% down to  1,9 million barrels. Turnover decreased by  21%, mainly as result of the negative  impact of the strong rand/US dollar  exchange rate. In Mozambique, where SPI produces gas  and condensate from the Temane and  Pande onshore gas fields, we maintained  steady output in the year, despite reduced  demand from customers resulting from  the global economic slowdown. In 2010, SPI and its partners in  Mozambique – Companhia Moçambicana  de Hidrocarbonetos and the International  Finance Corporation – produced and sold  107,4 M GJ of natural gas, compared with  106,8 M GJ in 2009. We continued work on the US$300 million  expansion of our onshore gas production  facilities in Pande and Temane to increase  the annual production capacity to  183 M GJ from 120 M GJ. With this  expansion, we aim to supply additional  gas to customers in Mozambique and in  South Africa, including Sasol Synfuels’ new  gas-fired power generation project.  We expect increasing gas production and  downstream utilisation in 2011, when the  central processing facility (CPF) expansion  project will have been completed and will  be ramping up progressively to 183 M GJ  in the years that follow. In 2010, we completed a detailed study of  the exploration drilling campaign in Blocks  16 and 19 offshore Mozambique. Both  wells discovered gas, but because of  reservoir complexity we do not expect to  develop these wells in the near future.  However, we have acquired exploration  46