South African energy company Sasol looking to sell Canadian shale assets

A natural gas rig in Northern B.C. File photo

CALGARY — South African energy company Sasol Ltd. is looking to sell its Canadian shale gas assets.

The company says it has identified the assets as being non-core and it will start a structured sale process involving Progress Energy, its partner in the asset.

In 2013, Sasol reached an agreement to sell part of its Montney acreage in northeast British Columbia to Progress Energy Canada Ltd for a total cash consideration of CDN$1,5 billion.

The decision comes as Sasol says it has completed reviews on more than half of its global assets so far.

The company says the examinations have confirmed that the majority of its assets will be retained and clear improvement actions have been defined for each.

However, it says it has decided not to invest in further greenfields gas-to-liquids projects including a proposed GTL project in the United States.

The company says it has also decided not to invest in any additional crude oil refining capacity.



The Canadian Press