South Africa coal at Saudi level of oil equivalent

South Africa has as many barrels of oil equivalent in its coal reserves as Saudi Arabia has in its oil reserves, says Sasol CEO Pat Davies.

South Africa thus has an opportunity to convert more of its coal into petrol, diesel and jet fuel, as is currently being done at a rate of 150 000 barrels a day (bbl/d) in Secunda.


Davies says that Sasols strategy is to replicate what it is doing in Secunda by building other hubs in South Africa and around the world, based on coal and natural gas.

He says that Sasols strategic framework needs to be viewed in the context of the broader global oil-and-gas industry landscape, where there have been key macro shifts.

One of those macro shifts is the move into a higher oil price paradigm.

The oil price is remaining high, which is of great benefit to the Sasol strategy, says Davies.

Mining Weekly