South African petrochemical group Sasol said it had hedged about 30% of its South African synthetic fuels and West African crude oil output against a fall in oil prices.

Sasol said in a statement on Tuesday the transaction was for 4.56 million barrels of oil. The company's spokeswoman said the execution of the hedge was completed on March 7.

Sasol said the hedge would give it downside protection should monthly average dated Brent crude oil prices fall below $85 per barrel. It expected to incur losses should the monthly average oil prices exceed a volume-weighted average of $172.77 per barrel.

"Call levels between $170 per barrel and $175 per barrel were entered into," Sasol said.

Oil prices fell on Tuesday as OPEC considered boosting production for the first time in more than two years, with Brent crude prices dropping 1.45% to $113.37 per barrel.

Sasol shares closed 0.88% lower at 385 rand, compared with a 1.6% fall in Johannesburg's Top-40 index of blue chips. Sasol also said Tuesday it would pay C$1.05 billion ($1.1 billion) for its second shale gas interest in Canada to boost its gas portfolio and secure feedstock for gas-to-liquids plants.