Sasol hedges 30% of its South African synthetic fuels, West African crude oil

Source: Sasol

Sasol (NYSE: SSL) has entered into hedging transactions (zero cost collars) for 4,56 million barrels of oil, equivalent to circa 30% of its planned South African synfuels and West African crude oil production for the final quarter of the 2011 financial year. The zero cost collars expire on 15 June 2011. 

The hedge will provide downside protection should monthly average dated Brent crude oil prices decrease below US$85 per barrel (put level) on the hedged portion of production. Conversely, Sasol will incur opportunity losses on the hedged portion of production should monthly average oil prices exceed a volume weighted average US$172.77 per barrel (call level). Call levels between US$170 per barrel and US$175 per barrel were entered into. 

Sasol assesses the appropriateness of oil price hedging continuously and periodically enters into hedging transactions to improve the stability and predictability of cash flows as part of its risk management activities.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs