Page 1

BP SOUTHERN AFRICA

FEATURE


right path BACK ON THE

B

P is the second biggest integrated energy company in the world and its history in South Africa reaches back over 100 years, where it has consistently been a leader in terms of direct investment and wealth creation. BP Southern Africa (BPSA) has its head office in Cape Town and is the third largest of seven oil companies operating in the country. “BP Southern Africa engages in refining and marketing of fuels and lubricants,” an industry expert told South Africa Magazine. BP is committed to South Africa. A global merger with Castrol in 2000 has made an enormous impact on BP’s lubricants business in Africa and BP is today a world leader in the

2

www.southafricamag.com

development of cleaner fuels and renewable energy. It is also pioneering technologies for the hydrocarbons in the production of cleaner power whilst employing the latest technology to minimise carbon emissions in hydrocarbon exploration and production. A R40 million fuel technology centre in Johannesburg is developing cleaner fuels for the South African market. “The centre is part of our long-term investment strategy into the country, which we view as a key growth market,” BP says. “We want to develop world class fuels value chains with an integrated offer to our customers utilising our market positions. “The centre is one of only four in the world belonging to BP,” it adds. “We want South African consumers to have access to BP’s best available fuel technology, and the centre will ensure that


BP Southern Africa FEATURE

Global fuel giant BP is committed to SA and adding value to consumers’ lives, while developing cleaner fuels. By Ian Armitage

the fuels developed for the local market remain unparalleled in quality and performance.” BP has spent more than R500 million on growing its forecourt infrastructure, expanding fuel delivery capacity and optimising refining in the country. The centre operates under a similar model to those in Germany and the US, focusing on quality assurance, technical service and marketing support for the local market, and plays an important role in the next phase of SA’s cleaner fuels agenda. South Africa is very important to the BP group and is one of BP’s best performing markets.

ASSEt SAlE In 2010 and 2011 BP upped its attempts to position itself for the future, confirming a $296 million deal through which it would sell its fuels marketing businesses in Namibia, Botswana and Zambia to Puma Energy, as well as its 50 percent interest in each of BP Malawi and Tanzania. “Puma Energy has agreed to pay BP a total of $296 million in cash, subject to certain postcompletion price adjustments,” a BP statement said. “The sales do not include BP’s refining and marketing businesses in Mozambique or South Africa,” the statement added. Puma Energy has operations in over 25 countries, including several in sub-Saharan Africa. The decision to divest these businesses followed a strategic review of BP’s southern African refining and marketing businesses, BP said. BP also announced its intention to sell its liquefied petroleum gas and tank-filling operations in various countries including South Africa. BP said it intended to sell its LPG bottles and tank filling operations in Portugal, the UK, Austria, Poland, Netherlands, Belgium, Turkey, China and South Africa, as well as its non refinery-integrated wholesale business. Also included in the sale is LPG storage terminals, bottle-filling plants, customer lists, operating licences and logistics assets. It intends to retain its autogas business in Europe and move it into the Fuels Value Chains, and maintain LPG wholesale outlets to support its refinery operations. The LPG bottles and tank filling activities will continue to be managed as a global business until sold, BP said. BP expects to complete any deal by the end of 2013, subject to regulatory and other approvals.

nEW CEo For SoutHErn AFrICA BP has also seen several changes at management level in Southern Africa. The unit appointed Gerard Derbesy as its chief executive officer in September 2011. Derbesy, formerly head of planning performance reporting for refining and marketing, has a www.southafricamag.com

3


BP Southern Africa FEATURE

wealth of refining and marketing experience in the oil industry. This he gained from over 15 years in a variety of roles in continental Europe, the United Kingdom, and the United States, with responsibility for areas including refining, commercial optimisation, supply, and marketing. BP’s southern African unit also named Priscillah Mabelane as chief financial officer and Alph Ngapo as chief operating officer. The appointments followed the announcement of Thandi Orleyn as the company’s new Chairperson and were in line with BP’s succession plan policy to achieve transformation in the industry. Of the appointments, BP said, “BP remains committed to ensuring transformation at all levels within the company and industry at large and will continue to make the appropriate and adequately-skilled appointments. “We also have every confidence in these new appointees’ abilities to add to what is already a strong team at BP, capable of continuing to deliver and contribute to the company’s growth strategy and the country’s energy needs.” 4

www.southafricamag.com

We want South African consumers to have access to BP’s best available fuel technology, and the centre will ensure that the fuels developed for the local market remain unparalleled in quality and performance

A global turnaround Earlier this year, BP declared itself “back on the right path” globally following the difficulties of the Gulf of Mexico oil spill with annual profits bouncing back from a $3.7 billion loss to a $25.7 billion profit. “BP is on the right path,” said Bob Dudley, the chief executive who took over from Tony Hayward following the Deepwater Horizon accident. “2012 will be a year of increasing investment and milestones as we build on the foundations laid last year. As we move through 2013 and 2014, we expect financial momentum will build as we complete payments into the Gulf of Mexico Trust Fund, restore highvalue production and bring new projects on stream,” he added. To learn more visit www.bp.com.

END


THE AGENCY P26325 250X180

Moving our economy in the right direction

Transnet is moving towards a world-class and sophisticated rail network that facilitates the delivery of coal, iron ore, manganese, cars, liquid b u l k a n d c o n t a i n e r i s e d g o o d s . We transport huge amounts of freight every day to help sustain and grow our economy.

So the next time you see a Transnet logo, chances are that the vehicle you are driving spent time on one of our trains. We’ll stop at nothing to keep everything moving.

Did you know? Every day Transnet Freight Rail moves freight along its approximately 20 500 kilometre rail network – of which 1 500 kilometres comprises heavy haul lines for export coal and iron ore.

www.transnet.net


South Africa Magazine, Suite 9 and 10, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF TNT Multimedia Limited, Unit 209, 16 Brune Place, London E1 7NJ ENQUIRIES Telephone: +44 (0) 1603 343367 Fax: +44 (0) 1603 283602 andy.ellis@tntmultimedia.com SUBSCRIPTIONS Call: +44 (0) 1603 343367 andy.ellis@tntmultimedia.com

www.southafricamag.com

BP Waterfront Portswood Ridge V&A Waterfront Cape Town, 8000 South Africa Tel: +27 21 408 2911 Email: oarpress@bp.com

www.bp.com

BP FEATURE  

SA MAG 24 bp FEATURE