Transcript SAPIA
SAPIA Transformation Journey in the petroleum industry July 2014 Transformation The liquid fuels empowerment framework 2 SAPIA: The first 20 years The liquid fuels empowerment framework Liquid Fuels Charter • 2000 • Energy White Paper of 1998 resulted in a ministerial task team was set up to address transformation Engaged to identify issues and propose solutions • First industry charter : liquid fuels charter signed by stakeholders: • SAPIA and its members • the then Department of Minerals and Energy • Central Energy Fund • Members of African Mineral and Energy Forum(AMEF) 2003 • • Charter incorporated into the Petroleum Products Act Broad-Based Empowerment Act promulgated 2007 • Codes of Good Practice become effective 2 November 2000 Lack of scorecard has proved a disadvantage to the industry SAPIA: The first 20 years The liquid fuels empowerment framework Ownership Socio economic development Management control 7 pillars of Transformation Enterprise development Employment equity Preferential procurement Skills development SAPIA: The first 20 years Empowerment Time Line 1997 1998 Afric Oil & Exel Formed 1999 2000 2001 Charter Signed Tepco Formed WWAIH acquire 20% share in Engen, Engen acquires Afric Oil assets WWAIH – Worldwide African Investment Holdings MIC – Mineworkers Investment Corporation WDBIH – Womens Development Bank Investment Holdings MIC & WDBIH acquire 25% share in all BP assets 2002 2003 Tosaco acquire 25% share in Total SA TCS to market commercial fuels, 75% Tosaco, 25% Total SA 2004 Thebe acquire 25% share in Shell SA Marketing, Shell acquires Tepco assets 2006 BP(45%) & Masana (55%) JV to market commercial fuels Sasol Oil buys BEE shareholding in Exel (77,5%) ALIH, SANTACO, employees acquire 25% share in all Chevron assets 2005 Tshwarisano acquires 25% share in Sasol Oil 2007 2008 2009+ Implement ation & evaluation Sasol Limited transfers 10% equity to BEE groups Thebe acquire 25% share in Shell SA refining (who have 50% stake in Sapref) ALIH – African Legend Investment Holdings SANTACO – South African National Taxi council Transformation General progress driven through SAPIA 6 The transformation journey Transformation timeline • • 2005 • • • 2006 • • Successful completion of SAPIA’s scarce and critical skills research Launch of the association’s first human resource development journal, The Petroleum Professional SAPIA and Women in Oil and Energy (WOESA) sign a MoU • SAPIA members individually supported WOESA financially • Cooperated to facilitate the sustainable empowerment of women in the oil, gas and other energy sectors Leadership in Oil and Energy (LOE) programme launched in January Joint initiative of SAPIA, the Chemical Industries Education and Training Authority (Chieta), and the University of the Witwatersrand (Wits), Run from 2006 – 2011with 348 industry employees graduating Giving the programme a 93.3% pass rate. The 2011 Johannesburg LOE programme graduation class The transformation journey Transformation timeline • 2008 • • SAPIA works with Department of Education to direct curriculum content for technical students to qualify as process plant operators at National Vocational Certificate Levels 2, 3 and 4. • Develop partnership with the National Petroleum Employers Association (NPEA) on skills development and representation in CHIETA. Participate in the LFC and energy industry transformation public hearings in Parliament. Participate in development of the National Skills Development Strategy. Participate in development of the CHIETA Sector Skills Plan 2009 2010 The launch of The South Africa Supplier Development Agency (Sasda). • Mandated to accelerate empowerment through increased access to industry procurement opportunities Implemented a five-year Human Resource Development Strategy for the industry. • • • The transformation journey Transformation timeline • • 2011 Conducted the LOE impact assessment. • Key finding - the LOE Certificate Programme would be revised with greater emphasis on an oil and gas curriculum SAPIA’s Board of Governors approved focus areas on women transformation and gender equity • SAPIA Gender Forum • Rotational women’s mentorship programme • Inclusion of women/gender representation across all SAPIA committees to achieve a 30% female representation target over the next three years. • Design and implement a Women in Leadership Programme (NQF Level 68) from 2012 to 2017. • Establish gender trends analysis The LOE programme impact assessment workshop team SAPIA women transformation workshop participants The transformation journey Transformation timeline • 2012 • • Women in Leadership Programme launched in August • arising from the LOE impact assessment and women transformation workshop. • Focus on petroleum industry women in management positions, required to interface with middle and senior management in organisations Department of Energy completed the compliance audit of the LFC. The SAPIA constitution was amended to make provision for admission of members that are licensed wholesalers or manufacturers • 5 New members accepted • The elected representatives of these new members attended their first Board of Governors meeting in November 2012 Participants in SAPIA’s 2012 Women in Leadership Programme The transformation journey General progress Oil, Gas and Chemical Manufacturing Companies Artisan Skills Training Project Artisans and process operators represent scarce occupations in the petroleum sector. Since 2007, the Oil, Gas and Chemical Manufacturing Companies Artisan Skills Training Project aimed to train artisans and process operators needed by the industry through learnerships. By 2010, 1 215 artisans and process operators qualified Another 106 were completing training for qualification in mid 2011. To date, the industry’s contribution to increasing the availability of skilled and qualified artisans and process operators, resulted in a R263-million investment. In addition to the classroom training, the artisans received mentorship, workplace experience training and resources to manage all levels of implementation. CHIETA also invested an additional R60-million into training artisans and process operators in the petroleum industry. July 2014 The transformation journey Focus Areas 2013/14 New Liquid Fuels Empowerment Framework • • Finalised position on alignment of LFC and B-BBEE Codes of Good Practice and submitted a proposal to DOE A key challenge is the repositioning of Enterprise and Supplier Development beneficiaries to only include black owned and black women owned qualifying small enterprises and exempted enterprises Advanced • Launched in 2013, accredited by the Rhodes Business School. Certificate in • About 45 delegates participated in the programme in 2013 Management • Aimed at middle managers making a transition to senior managers, requiring specialist knowledge in the oil and gas industry for Oil and Gas Skills development framework • Project resources in place to develop a plan to address skills requirements of the industry from artisans to post-graduates and research The transformation journey Focus Areas 2013/14 Improve reputation and stakeholder management Opening-up membership • • Continuing with the championship model which allows structured engagement with both the Energy Director General and Minister of Energy Retail transformation will be a key focus area for the year ahead. • • • 11 new members joined SAPIA in 2013. 3 new members joined SAPIA in 2014. There are currently 26 members Transformation The Way Forward 14 The transformation journey The way forward The road ahead: Alignment of the B-BBEE and the Liquid Fuels Charter. Development of skills development framework. Access and licences to logistical infrastructure. Retail transformation July 2014 The transformation journey General progress Compliance to the Broad-Based Black Economic Empowerment Amendment Act, 2013 SAPIA’s assessment of the industry’s achievements to date show that industry is making significant strides in respect of the pillars of the 2007 B-BBEE Codes of Good Practice. However, there are some challenges in the transformation journey which ultimately aims to achieve B-BBEE. These include procurement of crude oil, the need to increase credible B-BBEE suppliers, availability of accredited petroleum industry learning programmes and increasing the representation of people with disabilities. July 2014 The transformation journey SAPIA overview Looking forward, SAPIA is focusing on three strategic areas which will enable it to achieve its vision: Planning for tomorrow focusing on industry transformation, working towards a fair regulatory framework for all citizens, facilitating security of supply and promoting environmental leadership within the industry. Enhancing strategic partnerships educate stakeholders about the industry’s aims and activities and improving communication, thus ensuring there is transparency within the industry and that SAPIA is open and honest in all its dealings. Providing service excellence increasing efficiency and effectiveness, measuring and managing performance to make effective service delivery improvements, proactively identifying opportunities and improving decision-making processes. July 2014 THANK YOU - References, date, place