Global oil and gas group Sasol will no longer invest in mega-projects on its own as it did in the past as it targets a greater balance between growth and shareholder returns in future, executives say. Sasol has been investing substantially in growth and expansion projects in the past few years, including oil and gas production in Mozambique and the Lake Charles Chemical Project (LCCP) in the US. The cost of LCCP, an ethane cracker and chemicals complex, has escalated to $11.13bn from $7bn originally and subsequent revisions to $9bn and $11bn. Joint president and CEO Stephen Cornell said the cost of Hurricane Harvey and the two subsequent hurricanes that hit the Gulf Coast in August had raised costs by another $130m to $11.13bn. Although the budget included a contingency, this did not cover such extreme once-off events. Addressing investors at its annual capital markets day, Cornell said Sasol’s future growth would be focused on sectors where it had strong capabilities. It would expa...
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