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B P

A F R I C A

feature


value

Adding

to consumers’ lives Oil giant BP is committed to SA and adding value to consumers’ lives, while developing cleaner fuels.

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BP Africa FEATURE

B

P is the second biggest integrated energy company in the world and its history in South Africa reaches back nearly 102 years, where it has consistently been a leader in terms of direct investment and wealth creation. “BP Southern Africa engages in refining and marketing of fuels and lubricants,” Glenda Zvenyika, BP Southern Africa’s marketing communications manager, tells South Africa Magazine. BP is committed to South Africa, she says. “It is important to BP to add value to consumers’ lives.”

The launch of the centre is part of our long-term investment strategy into the country, which we view as a key growth market

© BP p.l.c.

She went onto explain how the global merger with Castrol in 2000 has made an enormous impact on BP’s lubricants business in Africa and how BP is today a world leader in the development of cleaner fuels and renewable energy, as well as the world’s largest producer and user of photovoltaic solar panels. 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 new R40 million fuel technology centre in Johannesburg, she adds, is developing cleaner fuels for the South African market. “The new fuel technology centre will enhance www.southafricamag.com

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BP Africa FEATURE

BP’s ability to provide differentiated fuels in South Africa,” Sipho Maseko, CEO of BP Africa, explains. “Our R40 million investment in a fuel technology centre in Johannesburg demonstrates the company’s commitment to South Africa.” It is expected that the centre will further boost the company’s ability to provide differentiated fuels in the South African market. “The launch of the centre is part of our long-term investment strategy into the country, which we view as a key growth market,” Maseko says. “Over the past year alone, BP has spent more than R500 million on growing its 
forecourt infrastructure, expanding

fuel 
delivery capacity and optimising refining in the country.” The company employs about 2,000 people in the South Africa and has a strong forecourt network of over 600 service stations. South Africa is very important to the BP group and is one of BP’s best performing markets. 
 “The centre is one of only four in the world belonging to BP,” Maseko says. “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.” The centre will operate under a similar model

The new fuel technology centre will enhance BP’s ability to provide differentiated fuels in South Africa

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BP Africa FEATURE

CEO profile to those in Germany and the US, focusing on quality assurance, technical 
service and marketing support for the local market. The facility will also play an important role in the next phase of SA’s cleaner fuels agenda.

ASSET SALE As it attempts to position itself for the future, BP recently confirmed 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 6

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NAME: Sipho Maseko Position: CEO of BP Africa Age: 41 About: Sipho Maseko is CEO of oil company BP Africa. He previously held the positions of COO and deputy CEO within the company. He joined the BP in 1997 after stints with Werksmans Attorneys and the Financial Services Board, where he worked in financial markets. He has since held various positions within BP, including those of executive assistant to the group vice-president: refining and marketing. Maseko sits on the boards of BP SA, BP/Shell Zimbabwe and the Centre for Development Enterprise. He also holds a seat on the board of Shell and BP SA Petrochemical Refineries, Southern Africa’s largest crude oil refinery. He has a BA and an LLB from the University of the Witwatersrand.


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BP Africa FEATURE

Cutting-edge Fuels Technology Centre situated in Johannesburg, South Africa, one of only four in the world

million in cash, subject to certain post-completion price adjustments,” a BP statement released in November said. “The decision to divest these businesses, which was first announced by BP in March 2010, followed a strategic review of BP’s southern African refining and marketing businesses. “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. 8

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The decision to divest these businesses, which was first announced by BP in March 2010, followed a strategic review of BP’s southern African refining and marketing businesses

Angola’s State-owned petroleum company, Sonangol, will purchase a 10 percent stake in the acquired businesses. Puma Energy’s chairman Pierre Eladari said: “This deal marks a significant milestone in the growth of our business, positioning Puma Energy as one of the largest independent downstream companies operating and investing in the region today. “Among the recent divestments by the majors in this region, we targeted the BP portfolio for the outstanding quality of its staff and assets, its key account customer base, and


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BP Africa FEATURE

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

for the strategic fit with our existing businesses in Mozambique, the Democratic Republic of Congo and Angola. As such, I am very pleased to have been able to conclude this deal with BP alongside our partners, Sonangol. “With full coverage of the SADC region, strong market share in each country, and over 450,000m3 of strategic fuel storage capacity under our operatorship, we now offer our customers and partners unrivalled security of supply and access to the regional 10

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marketplace. We believe this, together with our strategic alliance with Castrol, will be a strong driver of growth in our business over the medium-term.” Puma Energy will acquire all of BP’s interests in BP Namibia (100 percent share), BP Botswana (100 percent), BP Zambia (75 percent), BP Malawi (50 percent), and BP Tanzania (50 percent). The sale in each country is subject to different regulatory approvals, although


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Š BP p.l.c.


BP Africa FEATURE

it is expected that sale of BP Botswana will be complete in 2010 with completion in the other countries to take place in 2011. The newly acquired businesses will add 188 fuel service stations, 11 fuel storage terminals, a range of mining key accounts, and an aviation fuel business with a presence at 22 airports to the Puma Energy portfolio. “The decision to divest these businesses followed a strategic review of BP’s southern African refining and marketing businesses,” says Maseko.

It is important to BP to add value to consumers’ lives “With the experience and existing businesses of their owners in the region and elsewhere, we believe that Puma Energy should be able to build on these good assets and grow the businesses further in line with the strong economic outlook for the area and in the best interests of all key stakeholders.” The BP Africa region consists of the company’s downstream operations in Namibia, Botswana, Mozambique, South Africa, Tanzania, Malawi and Zambia. In addition, the company is engaged in oil and gas exploration activities in Angola, Algeria, Egypt and Libya. Downstream infrastructure includes some 29 depots and terminals, more than 800 retail sites and the largest refinery in the region co-owned with Shell. BP was voted SA’s top petroleum brand for the 10th consecutive year in the annual Sunday Times Top Brands survey. END 12

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OGILVY CAPE TOWN 32418/E

Volkswagen Racing recommends

Some said we’d never win five times in a row. They were right.

Six consecutive wins for Team BP Volkswagen Racing. A first place finish in this year’s National Rally Championships brings our tally to an incredible six National Rally Championships in a row. We are proud to congratulate Enzo Kuun and Guy Hodgson for putting us on top of the podium. Proving, yet again, Volkswagen’s unrivalled performance and reliability. Congratulations to Team BP Volkswagen Racing and here’s to many more victories.

National Rally Champions 2005, 2006, 2007, 2008, 2009 & 2010.


South Africa Magazine, Suite 9 and 10, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF TNT Magazine, 14-15 Child’s Place, Earl’s Court, London, UK. SW5 9RX Enquiries Telephone: 0044 (0)1603 343267 Fax: 0044 (0)1603 283602 emailus@southafricamag.com Subscriptions Call: 00441603 283573 subscriptions@southafricamag.com

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

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BP FEATURE  

SA Mag - Issue 9 - BP FEATURE

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