Submission to Parliament on Liquid Fuels Charter

1. Submission to Parliament on Liquid Fuels Charter 14 September 2010

2. Presentation outline • Vision and mission • Membership • Contribution to the South African economy • Charter for the South African Petroleum and Liquid Fuels Industry • Overview industry transformation journey • Charter measurement elements • Recommendation

3. Vision and mission Vision SAPIA aspires to be a respected industry association which enhances the reputation of the petroleum sector and adds value to its member companies and all stakeholders. Mission Working together within the petroleum industry to promote social and economic growth for the broader good of all South Africans and industry.

4. Membership Members are: • BP Southern Africa (Pty) Limited • Chevron South Africa (Pty) Limited • Engen Petroleum Limited • PetroSA (Pty) Limited • Sasol Limited • Shell SA (Pty) Limited • Total South Africa (Pty) Limited

5. Contribution to the South African economy • The petroleum contributes to the South African industry by: • contributing 2% of South Africa’s gross domestic product; • supplying about 18% of South Africa’s primary energy; • manufacturing more than 90% of South Africa’s petroleum products; • supporting employment for over 100 000 people directly or indirectly; • selling approximately 24.9-billion litres of petroleum products annually • spending more than R115-million on corporate social investment initiatives in 2009; and • collecting over R43-billion in fuel taxes on petrol, diesel and paraffin which is an important source of revenue for the government.

6. Charter for the South African Petroleum and Liquid Fuels Industry • SAPIA and its members are signatories • The Charter applies to the privately owned parts of the industry, and to all parts of the value chain, inter alia: • Exploration and production of Oil; • Liquid fuels pipelines; Single Buoy Mooring's; depots and storage tanks; • Oil refining and synthetic fuel manufacturing plants, including lubricants; • Transport, including road haulage and coastal shipping; and • Trading, including import and export v Wholesale and retail assets/infrastructure. •  The signatories committed to transfer 25% ownership and control of all facets of the industry over a ten year period.

7. Overview industry transformation journey • Transformation Committee • Advises BoG on Transformation • Facilitates transformation initiatives and compliance • Disseminates a coherent and common industry message Beyond 2010 Alignment CoGP HRD strategy 2005-2010 Supervisory & other Learnerships Procurement and SADSA Equity Transactions Signing Liquid Charter Ministerial Task Team 1999 2000 2010 2002 2003/4 2004/5 2005/10

8. Charter measurement elements • No scorecard • Ownership and control • Capacity building and employment equity • Procurement • Consultation, Monitoring, Evaluation and Reporting

9. Recommendation Alignment with the codes of good practice on broad-based black economic empowerment (B-BBEE Act): • Clear definitions • Commonly accepted scorecard • Verification by accredited Verification Agencies • Align with a national policy on broad-based black economic empowerment • Follow a national strategy for broad-based black economic empowerment

10. CONTACT INFORMATION: Avhapfani Tshifularo SAPIA Executive Director Office Address: Shanghai House, 52 Wierda Road West, Wierda Valley, Sandton, South Africa Tel: +27 (0)11 783 7664 Fax: +27 (0)11 783 5400 Email: fani@sapia.co.za