Transformation in the Petroleum Industry The Journey

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Transformation in the Petroleum Industry The
Journey

• Department of Minerals and Energy, ENERGY SUMMIT
• September 2007
• Prepared by
• SAPIA

SAPIA BP , Chevron , Engen , PetroSA , Sasol ,
Shell and Total
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Objectives of the Session

• Update on transformation achievements by
  Petroleum Industry
• Liquid Fuels Charter industry evaluation
• Identify Gaps and Way Forward

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The aim of the Liquid Fuels Charter is to ensure
that there is sustainable presence, ownership and
control by Historically Disadvantaged South
Africans of approximately 25 in all facets of
the Liquid Fuels Industry by 2010
LFC scorecard
Regulatory objective
Ownership
Effective ownership of Enterprises by Black
people Encourages the sharing of equity and
voting rights with black people and black women
Direct empowerment
Management Control
Effective control of Enterprises by Black people
Encourages senior black decision making at
Executive Board and Senior Top management levels
Equity in the workplace Encourages companies to
identify and recruit black people at
professional, middle and lower management
positions
EmploymentEquity
Human Resource Development
Skills Development
Development of competencies of Black
employees Encourages companies to develop black
talent through spending on skills development,
overseas placement and learnerships
Procurement of Goods and Services from strong
B-BBEE recognition level suppliers Encourages to
procure from BEE compliant companies. Encourages
spend on Small and Micro-enterprises, gt50 Black
owned companies and gt30 Black Women owned
companies.
Preferential Procurement
EnterpriseDevelopment
Assist and accelerate the development and
sustainability of other enterprises Encourages
development or expansion of black small, medium
enterprises particularly along the value chain.
Indirect empowerment
Promote access to the economy for Black
people Encourages initiatives intended to
directly provide black people who are natural
persons with means of generating income for
themselves
Socio-Economic Development
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The aim of the Liquid Fuels Charter is to ensure
that there is sustainable presence, ownership and
control by Historically Disadvantaged South
Africans of approximately 25 in all facets of
the Liquid Fuels Industry by 2010
LFC scorecard
Progress of Sapia members
Target 25 by 2010, current average ownership
22 Ongoing negotiations to extend ownership to
25. On track to achieve 25
Ownership
Direct empowerment
Sapia Director black , Sapia Board 75
black. Executive Management in Sapia members
companies 53 black at board level
Management Control
About 63 of Sapia members staff compliment is
black. Need to increase black woman at senior
levels.
EmploymentEquity
Human Resource Development
Major focus about R70m already spent on black
skills development Leadership programmes for
woman , learnerships , artisan training ,
functional bussiness skills
Skills Development
Preferential Procurement
Target for 2010 25 of local preferential
procurement must be with BEE suppliers. Current
BEE proc spend exceeds R6.5b, creation of SASDA,
ongoing BEE supplier development
EnterpriseDevelopment
Several emerging small /medium black companies
developed , receive support from Sapia
members. Capacity building , infrastructure
support , training , financial and business
skills
Indirect empowerment
Over R100m already invested in oil industry
projects Education , job creation, social
development , health (HIV Aids), environment ,
road safety
Socio-Economic Development
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In summary, our current assessment is that
Industry is on track towards achieving the Liquid
Fuels Charter 2010 aspirations

• WAY FORWARD
• Increase Black and especially women
  representation in senior professional levels
• Direct skills spend to core and critical skills
  and women development
• Ensure that Black suppliers are developed
• Align LFC with CoGP improve efficiency of BEE
  measurement
• Continue to increase the number of Black
  representation in Retail and Reseller/Distributor
  network