Sasol Exits Iranian Venture

Abstract

To help clear a path for a planned $20 billion in investments in Louisiana, Sasol, the South African energy and chemical firm, has agreed to sell its stake in its Iranian joint venture, Arya Sasol Polymer Co. The venture, to be sold to a South African affiliate of an Iranian investor, had become legally risky for Sasol as U.S. economic sanctions have mounted against Iran over its nuclear program. Sasol didn’t disclose the price of the transaction. It earlier valued the joint-venture stake at $223 million following a $191 million write-off of its worth. Sasol formed Arya Sasol in 2003 with National Petrochemical Co. of Iran to build a chemical complex in the Persian Gulf province of Bushehr. The partners completed an ethylene cracker in 2007. Polyethylene plants followed in 2009. Arya Sasol had been a solid performer for Sasol. In 2011, Sasol earned $45 million on $95 million in ...