South Africa’s Sasol buys stake in Canadian shale gas venture for $1 bn

South African energy group Sasol Ltd has agreed to acquire a 50-per cent interest in Talisman Energy Inc's Farrell Creek shale gas assets in the western part of Canada for approximately C$1.05 billion ($1.03 billion), the company's first and largest foray into shale gas.

Calgary, Canada-based Talisman Energy will retain the remaining 50-per cent stake, and continue as the operator of the assets that include associated gas gathering systems and processing facilities in the Montney basin of British Columbia, Sasol said in a statement.

Under the terms of the deal, Sasol will pay 25 per cent of the consideration, around C$260 million in cash at closing, and carry 75 per cent or approximately C$790 million towards Talisman's future capital commitments.

Johannesburg-based Sasol is an energy group with substantial chemical interests. The company is a leader in the production of liquid fuels and chemicals using its proprietary gas-to-liquid (GTL) and coal-to-liquid (CTL) technologies.

Sasol is provider of liquid fuels in South Africa, and operates oil and gas production facilities in Gabon and Mozambique.

The company also has GTL joint ventures in Qatar and Nigeria. Its stock is listed on the stock exchanges of Johannesburg and New York.