SASOL LTD. (ADR) $59.52 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082- 883-9697; www.sasol.com; ADRs outstanding: 650.3 million; Market cap: $40.0 billion; Dividend yield: 2.5%) has just signed a deal with Italy-based multinational oil giant Eni SpA. No financial terms were disclosed, but it could be significant.
Under the agreement, Eni will take a 40% partnership interest in an exploration permit that Sasol holds. The permit gives the company the right to explore an 82,000-square mile area in the Durban and Zululand basins off South Africa’s east coast.
This area is near where Eni and Anadarko Petroleum recently discovered a field containing more than 100 trillion cubic feet of natural gas. The deal also gives Sasol access to Eni’s offshore deep-drilling exploration expertise.
Sasol ADRs are a buy.
