petrol oil sector who owns who in south africa
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Essential Business InformationEssential Business Information
JOHANNESBURG OFFICE BALLYOAKS OFFICE PARK, BUILDING B, 35 BALLYCLARE DRIVE, BRYANSTON EXT 7 P O BOX 3044, RANDBURG, 2125 TEL: +27 11 513 -1450 FAX: +27 11 463-2771
PORT ELIZABETH OFFICE 1ST FLOOR, BLOCK F, SOUTHERN LIFE GARDENS, 70 2ND AVENUE, NEWTON PARK P O BOX 505, HUNTERS RETREAT, 6017 TEL: +27 41 394-0600 FAX: +27 41 363-2869 WEBSITE: WWW.WHOOWNSWHOM.CO.ZA REG NO: 1986/003014/07
DIRECTORS: MAUREEN MPHATSOE (CHAIRPERSON), JIM FICK (EXPERIAN), GLEN BALS (EXPERIAN), ANDREW MCGREGOR (MANAGING) © Copyright Who Owns Whom (Pty) Ltd
MANUFACTURE OF PETROL AND LUBRICANTS Siccode 332
February 2012
COMPILED BY: Guy McGregor
research@whoownswhom.co.za
Manufacture of Petrol and Lubricants Contents Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Contents
1 INTRODUCTION 1 2 DESCRIPTION 1 3 SIZE OF THE INDUSTRY 6 3.1 Oil Companies 6 3.2 Refineries 7 3.3 Lubricant Blending Plants 8 4 STATE OF THE INDUSTRY 10 4.1 Local 10
4.1.1 Regulations 13 4.1.2 BEE 19
4.2 Regional 19 4.3 International 21 5 SWOT ANALYSIS 21 6 FUTURE OUTLOOK 22 7 ASSOCIATIONS AND REFERENCES 23 APPENDIX 1 24
Typical Refinery Operation 24 Coal to Liquid Fuels Synthetic Refining Process 25 Natural Gas to Liquid Fuels Synthetic Refining Process 25
ORGANOGRAM 26 COMPANY PROFILES 28
BLUE CHIP LUBRICANTS (PTY) LTD 28 CHEVRON SOUTH AFRICA (PTY) LTD 29 DEOJAY PETROLEUM KZN (PTY) LTD 31 ENGEN PETROLEUM LTD 32 FUCHS LUBRICANTS (SOUTH AFRICA) (PTY) LTD 35 GERM AFRICA (PTY) LTD 37 H AND R SOUTH AFRICA (PTY) LTD 38 INDY OIL SA (PTY) LTD 40 KZN OILS (PTY) LTD 42 LUBRITENE (PTY) LTD 44 NATIONAL PETROLEUM REFINERS OF SOUTH AFRICA (PTY) LTD 46 PETROLEUM MARKETING ORGANIZATION (PTY) LTD 48 PETROLEUM OIL & GAS CORPORATION OF SOUTH AFRICA (PTY) LTD, THE 50 PISTON POWER CHEMICALS CC 53 SASOL WAX (DIVISION OF SASOL CHEMICAL INDUSTRIES LTD) 55 SHELL & BP SOUTH AFRICAN PETROLEUM REFINERIES (PTY) LTD 57 SPANJAARD LTD 59 TOTAL SOUTH AFRICA (PTY) LTD 62 VALVOLINE SOUTH AFRICA (PTY) LTD 64
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1 INTRODUCTION
The Liquid Fuels sector is a sophisticated one, with the only commercial synthetic coal-to-liquid fuel
refinery in the world and a distribution infrastructure meeting the challenges of a large country with
an industrial heartland six hundred kilometres from the coast. This report explores the downstream
and upstream value chain of the South African Oil industry, which contributes around 2% of Gross
Domestic Product (GDP). The report also examines the distribution of refined petroleum products
across the 1.2 million square kilometres that comprise South Africa. The Liquid Fuels Industry is at
an interesting stage with the existing refineries operating at capacity with economic growth
catching the Industry off guard, in that demand is stretching supply. As a result, new distribution
and refining capacity is needed sooner than expected.
2 DESCRIPTION
No significant reserves of crude oil have been discovered in South Africa, or its territorial waters,
despite a sustained search by Soekor, the state-owned oil exploration company, established in
1965. Limited natural gas deposits, and small oil fields, have been discovered off the South coast.
According to the most recent statistics, nearly 80% of South Africa’s crude oil is imported through
the single buoy mooring (SBM) system off the coast of Durban. Shell, BP, Sasol and Engen own the
SBM, which is managed by SAPREF, the country’s largest oil refiner. The remainder of the crude oil
imports are landed at Saldana Bay and piped to the Caltex refinery in Cape Town.
Primary Sources of Crude Oil - 2010
Major Sources of Crude Oil (2010) 000' of metric tons
% of total
Iran 5528 29%Saudi Arabia 4584 24%Nigeria 3594 19%Angola 3409 18%United Arab Emirates 1018 5%Argentina 297 2%Iraq 244 1%Spain 134 1%Switzerland 126 1%Cote d'Ivoire 88 0%Oman 72 0%Mozambique 44 0%Norway 37 0%United States of America 36 0%Equatorial Guinea 35 0%Cuba 9 0%TOTAL 19255 100%Source: South African Revenue Services
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Refining involves the procurement of crude oil and refining it, so that a range of final petroleum
products is produced. It is the first component of the downstream segment of the oil industry value
chain and the most capital intensive. The diagrams in Appendix 1 illustrate the different refining
processes. The refined products typically comprise the following six groups as shown in the table
below.
RSA Crude Oil Refinery Yield Data
Group Main Products % of the Barrel
Gases LPG 2.0
Light Distillates Petrol 30.5
Middle Distillates Paraffin 2.9
Jet Fuel 6.7
Diesel 31.7
Residuals Fuel Oil 13.0
Bitumen 2.0
Other 5.0
Fuel and Loss 6.2
Currently there are six private sector oil companies and seven brands. These can be classified into
three categories.
♦ The first category consists of the five large brands, Engen, Shell, Chevron, Total and BP, whose
individual share of the petroleum market varies between 13% and 30%. They also own
refineries.
♦ The second category comprises the independent wholesalers. These are largely Black
Empowerment Companies which are not branded but who distribute refined product mainly in
the Central, Eastern and North Eastern parts of South Africa to their customers. However this
is not a significant amount of product at this stage.
♦ The third category of oil companies is the synfuel industry, comprising two companies, Sasol
and PetroSA. PetroSA is primarily a refiner, producing petroleum products to be marketed by
the other oil companies, through their service stations and their corporate, farmer and
government customers. However Sasol markets refined products through a significant network
of service stations it has built up since the termination of the Main Supply Agreement in 2003.
The two basically use different inputs: Sasol uses coal and PetroSA natural gas, to produce
petroleum products. The synthetic fuel industry supplies around 35% of South Africa’s refined
product requirements.
The synfuel industry produces more Gases and Light Distillates than the crude oil refiners. This
helps meet petroleum product demand, as more petrol than diesel is sold in South Africa. As Sasol
shares the crude oil refinery, Natref, it is able to produce a more balanced barrel of refined
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petroleum products. However, this is not the case with PetroSA, which does not provide a crude
equivalent saving.
Sasol Synfuel Refinery Yield Data
Group Main Products % of the Barrel
Gases LPG 4,0
Light Distillates Petrol 65,0
Middle Distillates Paraffin
Diesel
5,0
26,0
The Lubricants market is a different segment of the Liquid Fuels Industry. While the mainstream
Liquid Fuels Industry petroleum products produce hydrocarbons which principally facilitate
movement in some sort of combustion engine or provide light or heat, the main task of a lubricant
and grease is to protect moving parts. Lubricants are primarily made from base oil which comes
from the fuel oil distillation at the bottom of the crude oil yield in the refining process, after which
additives are inserted for the lubricant at the lube oil blending plants to meet the required
specification for the various applications. The lubricants market consists of two parts, automotive
and industrial, with the former making up approximately 60% of the sales and the industrial market
comprising the balance of 40%. The total market in South Africa is around 400 million litres.
The other components of the downstream value chain are the distribution and marketing of refined
products. The 1953 bottle-necks on the Durban-Reef supply chain resulted eventually in a 700km
pipeline, 30.5cm in diameter being constructed in order to transport the refined product to the
Reef. It was commissioned in 1965 and is used to transport petrol, diesel, kerosene and naphtha.
The products are pumped to eight pipeline terminals from where they are transported by rail and
road to their final destination.
The different oil companies, including Sasol, market petroleum products throughout the country. To
improve efficiencies and prevent transport duplication, products are exchanged between oil
companies in certain areas. The Durban refineries (Enref and SAPREF) normally supply the Natal
area, Free State, neighbouring states as well as parts of the Cape Province. Chevref supplies most
of the Cape Province, whilst Sasol and Natref supply the Inland Area of Gauteng, Limpopo, North
West and Mpumalanga.
Refined products are distributed through around 55 oil company depots throughout South Africa.
They receive the products via the Durban/Reef pipeline in Natal, the Free State and the Inland
Area, with road and rail transport extending the distribution chain to other depots. The products are
then transported to their final destination: service stations, farms, mines, corporate or government
customers, by road and rail tanker. Due to the inefficiencies of the rail system, 85% is transported
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by road. Transnet controls the pipelines and the cost of moving refined products from the coast
inland is based on Transnet rail tariffs.
There are now four pipelines from Durban at the coast to the inland areas:
♦ The product pipeline referred to above;
♦ A crude oil pipeline to supply Natref with its crude oil feedstock;
♦ A third pipeline through Richards Bay, which currently brings the methane-rich gas from
Sasol’s Secunda Synthetic plants to customers on the coast; and
♦ The New Multi Products Pipeline (NMPP) which is taking the place of the previous product
pipeline from the coast to the inland areas. and it is currently being fully commissioned
The marketing of refined product is done in the following two ways:
♦ indirectly through service stations (Oil Company Retail Stream); and
♦ directly to farmers, mines, corporate customers, government or third party distributors (Oil
Company Commercial Stream). This stream comprises the wholesale activities of the Oil
Industry.
There are some 4173 retail service stations in South Africa which sell petrol, diesel and lubricants
as well as IP and even LPG in some cases. In the case of petrol, prices are controlled by
government at the level of pump prices, while there is a maximum price for diesel and IP at the
wholesale price level. Lubricant prices are not controlled. No discounting of service station petrol
pump prices is allowed. Service stations may not be run directly by oil companies. The dealers are
paid a service station dealer margin of 85.2 cents per litre which amounts to 7.9% of the 95
unleaded inland pump price as at November 2011 on top of the oil company wholesale price, to
enable them to run the service stations.
The retail sector of the value chain has very different characteristics to other parts of the value
chain. There used to be as many as 4900 retail service stations in South Africa in 2000. As at 2008
as mentioned above, this number dropped to 4173 as the oil companies rationalised their retail site
networks and withdrew particularly from rural areas where sales turnover has been low. Logistics
costs in supplying these far-flung sites were also high.
There are broadly three different levels or types of service stations operating in the local market
varying from high volume, value add service stations with fast food outlets, convenience stores and
car wash facilities to the lowest volume service stations. The types of service stations will vary with
location (McGregor, Peddie, Warnett, Jawoodeen, Said, 2009).
♦ Urban Sites tend to be high-pumpers with high volumes sold and vary according to location
and traffic flows. Additional income is earned through car-washes and convenience stores and
fast food restaurants. The investment costs range between R5m and R10m. Costs are largely
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driven by the price paid for the land. Motor repair workshops are generally not found at these
service stations as this service facility is provided by the motor dealership.
♦ Rural Sites tend to be lower pumpers than urban sites. Most of the rural service stations have
motor repair shops as part of their operations. The convenience stores concept has not taken
off in the rural areas because the needs of the consumer tend to be met by general dealers.
Also the low concentration of people in the rural areas would adversely impact on the viability
of convenience stores. Capital cost would be much lower than the urban sites because of lower
cost of land and limited facilities on the site. Investment in rural service stations would range
between R1m and R3m.
♦ Transient / Highway service stations are a relatively recent concept that has been
introduced in the market. It is a high investment business with an initial capital investment of
between R20m and R30m. It caters for both light (Motor cars) and heavy vehicles (Trucks).
The convenience store and restaurants are integral parts of the transient service stations. The
concept of overnight hotels/motels is also being introduced. This is a seasonal business
meaning high through flow occurs during the holiday seasons.
The ownership of the branded sites differs and falls into four main classes.
♦ Dealer owned / Dealer operated
Here the service station is both owned and operated by the owner. The owner would have a
branding, product supply and marketing support agreement with an oil company.
♦ Oil company owned / Dealer operated
As the oil companies in terms of government regulations are not allowed to operate the
service stations the site owned by them are leased to private operators. In terms of the lease
they are obliged to purchase their supplies and marketing support from the oil company
owning the service station.
♦ Property developer owned / Oil company leased / Dealer operated
In recent times oil companies have leased sites developed by Property Developers. The
property is leased to oil companies on a long-term basis. The operation of the site is then sub-
leased to private operators.
♦ Oil company owned / Oil company operated
In terms of the regulatory framework oil companies are allowed to own and operate a
maximum of one site per province for training and business development purposes.
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The Oil Industry Supply/Activity Chain
Upstream Sector
Trad
ing
Tran
sportation
Supp
ly &
Distribution
Who
lesale
Marketing
to
end users
Refin
ing
Prod
uctio
n
Develop
men
t
Downstream Sector
Exploration
Oil Industry value chain
The downstream oil sector comprises all aspects of the oil industry from oil refining to filling petrol
into a motorist’s tank on a service station forecourt or an overhead tank on a farm. The upstream
sector in comparison comprises identifying oil fields, drilling for oil and shipping crude oil to
refineries. The crude oil industry in South Africa can only be defined as downstream as South Africa
currently has no reserves of crude oil. However the synthetic oil industry of coal to refined
petroleum products and natural gas to refined petroleum products comprises the full value chain,
but rather than locating and exploiting crude oil, these refineries use coal and natural gas.
3 SIZE OF THE INDUSTRY
The Liquid Fuels sector, which manufactures petrol, diesel and fuel oil as its primary outputs,
produced over 28 700 million litres of refined product in South Africa in 2009. This was down from
35 300 million litres in 2008. This is done through six refineries. Four are crude oil refineries and
two are synthetic refineries which convert natural gas and coal into refined petroleum products. The
six refineries have a capacity of just over 700 000 barrels per day with the crude oil refineries
consuming around 20 million metric tons of crude oil per annum. This compares to a world
consumption around 3 900 million metric tons, which puts South African consumption at 0.5% of
the global total.
3.1 Oil Companies
The South African crude oil industry is dominated by foreign owned multinationals which have all
been proactive in seeking local Black Economic Empowerment partners to comply with the Oil
Industry Charter. The synthetic fuel industry is locally owned, by Government in the case of
PetroSA, while Sasol is listed on the Johannesburg and New York Stock Exchanges.
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Companies and Controlling Shareholding in the Oil Industry
RSA Company Owner % Ownership Refinery Used
Chevron Chevron 100% Chevref
Engen Petronas 80% Enref
WAIH 20%
Shell Royal Dutch/Shell 100% 50% of SAPREF
BP BP plc 75% 50% of SAPREF
MIC 15%
WDB 10%
Total TotalFinaElf 50,1% 36% of Natref
Rembrandt 24,9%
Tosaco 25%
Sasol Oil Sasol Ltd 100% Sasol Synthetic Fuels, 64%
of Natref
[Source: SAPIA]
3.2 Refineries
The Mobil refinery, the first in South Africa, was completed in January 1954 and is located in
Wentworth, Durban. Now renamed Enref, it is 69% the size of the SAPREF (the BP/Shell refinery).
SAPREF, jointly owned by BPSA (50%) and Shell (50%) is also located in Durban and is the biggest
refinery in Southern Africa. It came on stream in October 1963. According to the website, the
refinery:
♦ “processes 24 000 tons of crude oil a day;
♦ makes 10 main products in 46 different grades; and
♦ produces 2.7 billion of petrol” per annum.
Natref, the inland refinery at Sasolburg is jointly owned by Sasol and Total.
Chevref, the Chevron refinery, is located in Cape Town at the request of Government. The initial
plan was to locate it in Durban. It is 56% of the size of SAPREF and when it came on stream in
July 1966, South Africa became for the first time completely independent of imported refined
products.
These refineries are relatively small by world standards where new refinery capacities tend to be
greater than 350 000 barrels per day. The location and capacities of the South African refineries are
shown in Graph 2 below.
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South African Refineries, their Capacities and Locations
South Africa
Botswana
Lesotho
Namibia
Zimbabwe
Mozambique
Walvis Bay
Port ElizabethEast London
Mossel Bay
Durban
Richards Bay
MaputoNATREF 108 kbpd(Sasol & Total)
Sasolburg
Kudu Gas Field
Pande & TemaneGas Fields
Mossgas Field
Cape Town
Windhoek
Gaborone
Saldahna Bay
SBM
Mossgasequiv.
45 kbpd
Engen 120 kbpd
Sasol 2&3 eq 150 kbpd
Caltex 100 kpbd
SAPREF 180 kbpd (Shell & BP)
Swaziland
Crude Oil RefinerySynfuel PlantPipelinesMajor markets
0 500 km
Refinery Locations in South Africa
Johannesburg Witbank
[Source: BPSA]
3.3 Lubricant Blending Plants
As mentioned, the total market for automotive and industrial lubricants in South Africa is around
400 million litres. Gauteng is the biggest market for lubricants with a market share of around 60%.
The Western Cape and KwaZulu Natal come in at around 15% each with the other provinces
making up the remaining 10%. Lubricants, because of the personal service of technical people,
have higher margins than fuels.
The major lubricant blending plants in South Africa are:
♦ LOBP (BP Island View, Durban) supplier to Castrol, BP and Shell;
♦ Engen/Caltex joint venture at Island View, Durban; and
♦ Sasol/Total joint venture also at Island View, Durban.
There are also minor lubricant oil blending plants such as:
♦ Fuchs Lubricants Johannesburg;
♦ Blendrite, Durban;
♦ Indy Oils, Cape Town; and
♦ H&R Blenders, Durban.
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Independent blend plants include:
♦ Lubritine, Durban;
♦ Motorlube, Durban;
♦ Piston Products, Cape Town;
♦ Petromark, Johannesburg;
♦ Spanjaard, Johannesburg;
♦ Germ Lubricants, Johannesburg; and
♦ KZN Oils Durban.
Summary of Players
Company Employees Revenue
Production
Capacity
(Barrels /day)
Oil
company Refinery Lubricants
Blue Chip Lubricants
(Pty) Ltd
30 X
Chevron South Africa
(Pty) Ltd
1 200 100 000 X X X
Deojay Petroleum KZN
(Pty) Ltd
10 X
Engen Petroleum Ltd 3 379 135 000 X X X
Fuchs Lubricants (South
Africa) (Pty) Ltd
117 X
Germ Africa (Pty) Ltd 27 X
H and R South Africa
(Pty) Ltd
36 X
Indy Oil SA (Pty) Ltd 57 X
KZN Oils (Pty) Ltd 84 X
Lubritene (Pty) Ltd X
National Petroleum
Refiners of South Africa
(Pty) Ltd
t/a NATREF
573 108 500
X
Petroleum Oil and Gas
Corporation of South
Africa (PetroSA)
1 836 R10,565.0m
(2011)
45 000
X X
Petroleum Marketing
Organization (Pty) Ltd
t/a Petromark
42
X
Piston Power Chemicals
cc
X
Sasol Wax
(Div of Sasol Chemical
Industries Ltd)
500 R2.5m
(2011)
X
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Company Employees Revenue
Production
Capacity
(Barrels /day)
Oil
company Refinery Lubricants
Shell & B P South African
Petroleum Refineries
(Pty) Ltd
730 180 000
X X
Spanjaard Ltd 107 R102.1m
(2011)
X
Total South Africa
(Pty) Ltd
800 X
Valvoline South Africa
(Pty) Ltd
15 X
4 STATE OF THE INDUSTRY
4.1 Local
The volumes of major petroleum products produced in the last decade are shown below.
Extent of Production of Petroleum Products during the last Decade
RSA Consumption by Major FuelML 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 % of TotalPetrol 10 396 10 340 10 335 10 667 10 985 11 165 11 279 11 558 11 069 11 311 46.6%Diesel 6 254 6 488 6 831 7 263 7 679 8 115 8 708 9 755 9 762 9 109 37.5%Paraffin 857 786 745 769 797 761 738 696 532 544 2.2%Avtur 2 020 1 924 1 967 2 099 2 076 2 180 2 260 2 402 2 376 2 186 9.0%Fuel Oil 555 555 536 528 569 489 476 465 555 593 2.4%LPG 567 599 586 558 563 550 605 636 613 528 2.2%TOTAL 20 649 20 692 21 000 21 884 22 669 23 260 24 066 25 512 24 907 24 271 100.0%% Change 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 AAI 00-09
Petrol -4.3% -0.5% 0.0% 3.2% 3.0% 1.6% 1.0% 2.5% -4.2% 2.2% 0.9%Diesel 4.4% 3.7% 5.3% 6.3% 5.7% 5.7% 7.3% 12.0% 0.1% -6.7% 4.3%Paraffin -18.7% -8.3% -5.2% 3.2% 3.6% -4.5% -3.0% -5.7% -23.6% 2.3% -4.9%Avtur 1.3% -4.8% 2.2% 6.7% -1.1% 5.0% 3.7% 6.3% -1.1% -8.0% 0.9%Fuel Oil -1.1% 0.0% -3.4% -1.5% 7.8% -14.1% -2.7% -2.3% 19.4% 6.8% 0.7%LPG 5.0% 5.6% -2.2% -4.8% 0.9% -2.3% 10.0% 5.1% -3.6% -13.9% -0.8%TOTAL -1.7% 0.2% 1.5% 4.2% 3.6% 2.6% 3.5% 6.0% -2.4% -2.6% 1.8%
Source: Sapia and DME; AAI is Average Annual Increase
The issue of fuel security is an important one. Recent shortages have been as a result of unplanned
shutdowns at some refineries. According to the Fuel Retailers’ Association, the recent shortages in
Gauteng were blamed on the ongoing unplanned shutdown at SAPREF in Durban. Shell, joint owner
of SAPREF had to ration its customers and implement contingency measures, which included,
“Procuring cargoes of refined product for import into South Africa and co-ordinating efforts with
other petroleum suppliers to supplement product shortfalls.” At the end of January 2012, SAPREF
reported that it had restarted its refining operations, so production was expected to be back at full
capacity within a few days.
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According to the South African Petroleum Industry Association (Sapia), Government and the
industry were tackling the security of fuel supply. A Sapia executive director was reported as
saying, “A petroleum products planning team, which comprises the petroleum industry, the
National Energy Regulator of South Africa (NERSA) and the Department of Energy (DOE) and
pipeline owners Transnet, is meeting on a regular basis to assess the situation and minimise supply
disruptions.”
The new multi-product pipeline (NMPP) used for the first time on 11 January 2012, is expected to
help speed up supply to the inland regions. According to the Transnet group CEO Brian Molefe,
"We are now able to concurrently run the Durban to Johannesburg pipeline and the NMPP with
petroleum products that will see some three million litres per hour ... flowing between Durban and
Johannesburg every week." The diesel took a week to travel 555km, passing through three pump
stations and over the Drakensberg escarpment, from the Durban port to the Jameson Park inland
terminal in Heidelberg, at a speed of 6kph to 7kph. Two more terminals have to be constructed but
once complete, probably within the next 18 months, the pipeline will be able to transport 95-octane
and 93-unleaded petrol, 500ppm and 50ppm diesel, jet fuel and gas. The entire project is expected
to cost at least R23.4bn.
Sasol has now built an 800km natural gas feeder pipeline from the natural gas fields in Pande and
Temane in Mozambique, which it also uses as feedstock. Government subsidies used to be needed,
as synthetic production is more expensive than crude oil refining at world crude oil prices of $18 to
$20 a barrel. However at current prices of around $100 to $120 a barrel, Sasol’s plants are
experiencing large profits.
Despite these recent investments, the petrol and lubricants sector is at a crossroads. Currently the
sector faces daunting challenges similar to the electricity sector in that demand is outstripping
supply. The six refineries in the country are operating at full capacity. Increasing use of imports has
become necessary and the crude oil refineries are aging, most built in the early 1960’s and there is
need for extensive investment particularly to meet cleaner fuel specifications. Thus, decisions will
need to be made soon as to the future of the sector.
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South African Refineries and Their Capacities
South African Refining Capacity (bbl/day)1992 1997 2007 2009 2017 Base 2017a 2017b 2017c 2017d
Sapref 120 000 165 000 180 000 180 000 180 000 360 000 180 000 180 000 360 000 Enref 70 000 105 000 125 000 125 000 125 000 125 000 Chevref 100 000 100 000 100 000 100 000 100 000 100 000 Natref 78 000 86 000 108 000 92 000 92 000 92 000 92 000 92 000 92 000 Secunda 150 000 150 000 150 000 150 000 150 000 150 000 150 000 150 000 150 000 PetroSA 45 000 45 000 45 000 45 000 45 000 45 000 45 000 45 000 Coega/Western Cape 400 000 310 000 250 000 Mafutha 80 000 TOTAL 563 000 651 000 708 000 692 000 692 000 872 000 867 000 857 000 852 000 ML/Annum 32 664 37 769 41 076 40 148 40 148 50 591 50 301 49 721 49 430 Imports/Biofuels ML/Annum 4 000 10 000 500 500 500 1 000 TOTAL 563 000 651 000 708 000 760 945 864 363 880 618 875 618 865 618 869 236
Refinery Expansion Scenarios
[Source: SAPIA]
There are five possible configurations for the future.
1. A grassroots refinery would be built with a capacity of around 350 000 barrels per day in order
to achieve the economies of scale required of international markets. Hence the proposed
refinery at Coega is mooted at 400 000 barrels per day.
2. The Base case in the table above shows that to achieve the estimated demand of 865 000
barrels a day, with no additional refining capacity, South Africa would require 10 000
megalitres of main fuels (petrol, diesel and kerosene) to be imported into the country by
2017. This appears to be the preferred case of the owners of the crude oil refineries in the
country as significant export refining capacity is coming on stream in the Arabian Gulf and
India which could supply the country’s needs at the minimal cost of increasing import
facilities.
3. Expansion scenario 2017a in the table envisages no new build at Coega but a substantial
brownfields expansion at SAPREF and investment at the aging refineries of Chevref and Enref
to meet new clean fuels specifications and environmental upgrades which are expected to be
very costly. These two plants were built 50 and 60 years ago and are now located within
urban areas and need significant investment.
4. Scenarios 2017b and 2017c see the closing of both Chevref and Enref and the building of
either the full envisaged Coega at 400 000 barrels per day or a smaller Coega, but still with
sufficient scale and the mooted coal to liquids plant in Limpopo. However Mafutha in Limpopo
will need government support and due to its process of coal gasification, is environmentally
problematic. Both these scenarios are accompanied with a measure of imports.
5. Finally 2017d envisages a smaller Coega, at less cost but with less economies of scale, and a
significant brownfields investment at SAPREF. The marginal refineries at Enref and Chevref are
also to be closed as in scenarios 2017b and 2017c. More imports are envisaged here as well.
2017d is likely to be the most capital cost effective. However the operational costs of moving
refined petroleum product from Coega to the main markets still needs to be factored in.
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The regulations covering the Liquid Fuels Industry in South Africa are being overhauled. The
current ‘MPAR’-based regulation comprising the MPAR, Service Differential and Dealer Margin is
being replaced with mechanisms based on the Capital Asset Pricing Model (CAPM) and the Weighted
Average Cost of Capital (WACC) applied to a rate base calculated by using activity based regulatory
accounts and similarly based costs. This is explained in greater detail under Regulations.
The market for lubricants in South Africa is diverse and for this reason it is difficult to establish
industry growth or decline. However vehicle sales have recovered strongly in the past couple of
years although drainage periods are more drawn out. Car sales are leading indicators of upswings
in the economic cycle and GDP in South Africa is expected to grow out of the recession of 2009 and
hover around the 3.5% to 4% level for the medium term.
Forecast South African Economic Performance
Real GDP and it's spending composition (%Change)Forecast 2010 2011 2012 2013 2014GDP 2.8 3.5 3.7 3.9 4Private Consumption 4.6 4.8 4.5 4.2 4.5Government Consumption 4.6 4 4 4 5Gross Fixed Investment ‐3.6 2 5 7 10Export Goods & Services 5.4 7 5 6 5Import Goods & Services 10.4 11 10 10 10Change in Stocks ‐0.5 1 1 0.5 0.5Domestic Demand 4.1 4.5 4.6 4.7 5
Source: First National Bank
The lubricant sector is more labour-intensive than fuels as technical skills are important in ensuring
that the appropriate product is applied to the relevant application. Most major lubricant brands
have their own laboratories where used oil is analysed to understand the potential and actual
problems of an engine.
The retail market in South Africa is close to maturity as there is little room for an increase in the
number of service stations. There is, though, dynamism in this market, characterised by the closure
of marginal sites (low volume sites) and the opening up of new sites in prime positions. These new
sites, as is the global trend, are characterised by larger forecourts and new services that are not
necessarily petroleum related, such as convenience stores and car washes.
4.1.1 Regulations
Due to the oil embargo imposed on South Africa in the Apartheid era, oil procurement was largely
done by the Governments' Strategic Fuel Fund or SFF. With the disappearance of apartheid and the
lifting of sanctions, oil companies now purchase their own crude oil supplies directly from
international markets. Each company has its own trading division which secures any crude oil or
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refined product it needs and arranges for this to be fed into their refineries or on shore distribution
networks. No regulations govern the procurement of crude oil. The SFF still exists to secure
Parastatal needs such as PetroSA, but trading activity is limited.
The current regulatory framework around the oil industry evolved over the past fifty years. An
important part of Government’s control of the Oil Industry is control of the margins that can be
earned across the value chain. Initially Government controlled the entire oil industry value chain
including refining. However as outlined in the diagram below, this regulation now starts at the
refinery gate and ends at the retail service station.
Current/Outgoing Government Regulation of the Oil industry
This highly regulated sector is currently undergoing transition from an outdated regulatory margin
system based primarily on what is known as the Marketing of Petroleum Activities Return (MPAR) to
transparent margin mechanisms based on widely accepted theoretical models such as the Capital
Asset Pricing Model (CAPM) and the Weighted Average Cost of Capital (WACC). In the past the
target rate of return was set by a black box where nobody was clear of the rate of return’s
derivation. However the new system is founded on clearly visible criteria such as Equity Market Risk
Premiums, Risk Free Rates as published in the press and company betas derived from share prices.
OUTGOING REGULATION
DEALER MARGIN 24.5 c/l
WHOLESALE MARGIN
ZONE DIFFERENTIAL
BFP
UNDERRECOVERY or OVERRECOVERY
GOVERNMENT DUTIES AND TAXES
Costs + 25% profit margin
15% ROA triggered outside 20% & 10%
Government
No competition between refiners and importers
DEALER MARGIN
Transnet tariffs; primary distr
SERVICE DIFFERENTIALCost recovery; seconry distr
Service Station DealerOil Companies
Oil CompaniesGovernment - Oil Industry collects
20% of all indirecttaxes
Changes as prices move in a month
Transnet andOil CompaniesCrude Oil &
Synthetic Fuel Producers
and Refiners
BeneficiariesMechanisms
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New Proposed Oil Industry Regulatory Mechanisms 2011
[Source: DOE]
The process is being implemented, but is not expected to be fully applied until the end of 2012.
The following explains the current petrol price build up as at November 2011.
♦ The Dealer Margin was based on a survey of costs of a sample of 100 service stations
undertaken by the Small Business Advisory Bureau (SBAB) of the North West University, the
basis of which is that operating costs should be 80% of gross profit. This methodology was
developed from the SBAB’s 1997 report. The guideline related to costs in relation to gross
profit was defined as follows: “The SBAB’s guideline is that costs should not absorb more than
80% of the gross profit”. The report proceeds to say that: “The average, according to the
investigation, is 95,28%. This is well above the norm, but a substantial improvement to the
previous investigation is realised. This is also due to the fact that there was an increase in the
gross profit margin”1
1 Small Business Advisory Bureau (NWU): Retail Margin Investigation, November 1998, Page 15
CURRENT REGULATION VS TASK 141 - November 2011
Wholesale Margin – 27.7 c/l
BASIC FUEL PRICE – 629.15 c/l
GOVERNMENT DUTIES AND TAXES –274.25 c/l ULP 95 Petrol
(Retail Op Margin – 59.7 c/l)
Secondary Distribution Margin – 8.4 c/l
Coastal Storage Margin – 1.4 c/l
Secondary Storage Margin – 12.6 c/l
TRANSPORT COST – PRIMARY 22.9 c/l
(DEALER MARGIN – 85.2 c/l)
Wholesale Margin – 54.1 c/l `
Service Differential 11.4 c/l
BASIC FUEL PRICE – 629.15 c/l
UNDERRECOVERY OR OVERRECOVERY
GOVERNMENT DUTIES AND TAXES –274.25 c/l ULP 95 Petrol
Zone Differential 22.9 c/l
CURRENT REGULATIONTASK 141 PROPOSED REGULATION
(Retail Investor Margin – 55.8 c/l)
UNDERRECOVERY or OVERRECOVERY
Petrol ULP 95
Difference 15c/lPump Price = 1077 c/l Pump Price = 1092 c/l
141
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The dealer margin comprised 7.9% of the Price Build-Up in November 2011 and is a greater
amount than the Industry Margin which stood at 5.0% in the same month.
The new regulation being introduced by government is predicated on what is known as a
Benchmark Service Station (BSS). Here a ‘benchmark’ fuel only site has been designed and
the operating costs and assets evaluated. The BSS margin contains a reward for building the
service station, for running the service station, any entrepreneurial reward and any other
costs (repayment of key money) that the dealer or oil company may have incurred or will
incur in running the service station. The BSS margin is a lot higher than the ‘old’ dealer
margin because the capital outlay in building the service station now rests in the BSS margin
and not the wholesale margin. Those dealers that own their own sites will make a handsome
margin and oil companies need to negotiate with their franchisees to extract the margin that
is due to them. The dealer under the new regulation is in a powerful position.
♦ Industry/Wholesale Margin. The composition and derivation of the Industry Margin via the
MPAR Mechanism where the Oil Industry earns a 15% return on assets and an adjustment is
made to the margin should this return fall below 10% or rise above 20%. Suffice to say that
the Industry Margin mechanism is being changed.
History of Petrol Wholesale Margin
[Source: SAPIA Annual Report]
♦ The service differential is an actual average of depot storage and distribution costs from the
depots to service stations and bulk commercial customers, and is determined by the DOE on
audited figures supplied by the petroleum industry and averaged for the whole country. Thus,
this element of the regulated pricing regime compensates the oil marketing companies for the
actual cost of operating the depot and the costs for distributing the product to the service
stations and other commercial customers. It is calculated by using total fuels volumes uplifted
and delivered from oil company depots for regulated products, namely petrol, diesel, and
illuminating paraffin. Furthermore, it is calculated on actual historic cost for the previous year
for the whole Industry, averaged country-wide.
The capital costs in respect of storage and handling at depots are compensated through the
MPAR formula or the wholesale margin. Therefore exactly the same amount in SA cents per
Petrol Wholesale Margin
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005** 2006 2007 2008 2009 2010***MPAR return (%) (1,6) 3,4 8,7 13,9 12,0 9,2 6,8 8,8 9,7 7,3 4,0 3,8 1,9 9,72 21,22 _ _ _ _Indicated margin increase (c/l) 4,0 4,0 2,3 0,0 0,0 2,7 4,9 3,6 2,5 3,81 6,75 6,93 8,97 3,21 (4,21) _ _ _ _Increase granted (in succeeding year) _ 4,0 4,0 0,5 0,0 0,0 0,0 2,0 1,0 0,5 1,23 2,58 6,93 8.97 2,0 _ _ _ 5.4 6.2 3.0Margin at year end (c/l)* 5,6 9,6 13,6 14,1 14,1 14,1 14,1 16,1 17,1 17,6 18,8 21,4 28,3 37,3 39,3 39,3 39,3 39.3 44.7 50.87 53.869
*Petrol 93 Octane**The Marketing of Petroleum Activities Return (MPAR) system was no longer in use from 2005. A new system is being developed. ***The Minister of Minerals and Energy approved a wholesale margin increase of 3.0 c/l from 1 December 2010
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litre is included in the wholesale price, independent of the actual distance between the depots
and the customer. The service differential was increased in 2010 to 11.4 cents per litre and as
at November 2011 comprised 1.1% of the Price Build-Up. This element has been reviewed
under Task 141 and the capital costs and operating costs have been consolidated into the new
margins. No longer is the capital cost sourced from the wholesale margin. Furthermore the
Service Differential has been split into its two components of Secondary Storage and Handling
and Secondary Distribution with a margin in cents per litre for each. The combined margin for
these two mechanisms is currently 21 c/l compared to the Service Differential at 11.4 c/l as
mentioned above. The objective of government in this new process is to encourage
investment in these avenues as stand alone, transparent activities rather than dominated by
the integrated oil companies.
♦ Government Duties and Levies are set by the authorities.
Government Duties & Levies – 95 Octane Unleaded in November 2011
[Source: DOE]
♦ The Zone Differential is the cost of moving petroleum products to Inland Areas away from
the Coast. It is based on rail tariffs and increases progressively as the petroleum product
moves inland. The cost of 22.9 c/l shown in South African Price Build-Up November 2011
above reflects the cost of movement of refined product from the Durban coast to Gauteng.
♦ Over and Under-recovery reflects the difference between the cost of purchasing refined
petroleum product and the price paid for that petroleum product by the motorist. As the cost
of petroleum product changes daily, while the price to the motorist or consumer only changes
monthly there is a mismatch between procurement and sales. This difference is especially
great when petroleum product prices are rising or falling quickly as was seen in 2008 when
prices spiked prior to the global economic meltdown caused by the credit crunch. No value has
been attached to this element in the diagram as it could be a negative or positive, or it could
be inconsequential.
♦ Basic Fuel Price (BFP). The two biggest components of the price build-up are Government
taxes at 25.5% of the pump price and the Basic Fuel Price or BFP, which stood at 58.4% of the
pump price in November 2010. The bulk of South African products are refined locally. Where
there are shortages, products are imported. The crude oil refineries' profitability derives from
the difference between the cost of crude oil and the cost of refining versus the BFP.
2011 RSA c/litre Fuel tax
Customs & excise
Equali-sation fund levy
Pipeline Levy
Road accident
fund Slate levy DSML
Transport Recovery
LevyPump
Rounding TOTAL
Nov 177.5 4 - 0.15 80 - 10 3 -0.4 274.2564.7% 1.5% 0.1% 29.2% 3.6% 1.1% ‐0.1% 100.0%
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BFP is the price at which the refiners hand over their product to the Marketers. This is the
price that an importer of refined product into South Africa would pay for fuel. It includes
freight, insurance, ocean loss, landing, wharfage, coastal storage, the financing of that coastal
storage and demurrage from refining centres in the Mediterranean, Arab Gulf and Singapore
as shown in the diagram below. The IP and diesel prices are weighted 50% of the spot prices
originating from the Mediterranean and 50% of those prices from the Arabian Gulf, while the
petrol price is derived from 50% Mediterranean and 50% Singapore. The aim is to obtain the
most competitive prices from the most competitive refining centres.
The other components of BFP are based principally on international prices formulated in
international markets. At current high prices of crude oil BFP makes the synthetic fuel industry
more viable.
Components of the Basic Fuel Price
[Source: BPSA]
Illuminating Paraffin and diesel have a maximum government controlled price at the wholesale
price level in the case of the commercial marketers, (that is, there is no additional service station
dealer margin). While no discounting of service station petrol pump prices is allowed, the different
oil company commercial marketers are allowed to compete for customers by discounting the price
of their products.
Basic Fuel PricePlatts Product Prices (Spot)•Med & Arabian Gulf for Diesel & IP•Singapore and Med for Petrol
FOB ValuesUSc/Ag
100% Spot
AG
Singapore
Shipping CostsFreightInsuranceLandingWharfageFinanceStorageDemurrage
Med
BFPSouth Africa
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4.1.2 BEE
Recent developments include the licensing of all players to promote Black Economic Empowerment,
investment and create employment opportunities and small business
BEE - The South African crude oil industry is dominated by foreign owned multinationals which have
all been proactive in seeking local Black Economic Empowerment partners to comply with the Oil
Industry Charter. The Oil Industry Charter was one of the first BEE initiatives and it is not seen as
progressive. As a result, the Government has challenged the Oil Industry to come up with better
plans on BEE.
4.2 Regional
The Liquid Fuels Industry is regional with most companies represented within the South African
Customs Union (SACU) and the bigger players also having a presence in the Southern African
Development Community (SADC). The biggest oil companies in the world are represented in South
Africa, with the exception of Exxon/Mobil, which exited South Africa in the late 1980s with the
strengthening of sanctions against Apartheid. However, they have started to build a presence in the
lubricant market. Recently BP and Shell sold several of their Africa operations North of the Limpopo
to concentrate on their global exploration and production divisions.
As mentioned earlier, the estimated size of the South African lubricants market is 400 million litres.
The other countries in the Region are a lot smaller than this.
Estimated size of Lubricants Market of selected African Countries
Lubricants Botswana Mala wi T anzania ZambiaML ML ML ML
2008 47 3 12 142009 40 5 9 16Retail 18% 21% 22% 20%Commercial 82% 79% 78% 80%
The table below shows that Botswana is a relatively rich country with a per capita income of around
$6500. This higher level of development is evidenced by its relatively high consumption of
lubricants and is a function of its diamond mine output and relatively higher vehicle levels. The
global economic collapse in 2009 affected diamond production and hence lubricant sales declined in
2009.
Zambia has a sizable copper mining industry and this country’s lubricant consumption is also
relatively high. Copper prices did not fall much in the global credit crunch of 2009 and hence
lubricant volumes remained at high levels in 2009.
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Malawi and Tanzania are relatively undeveloped countries although there is potential for growth in
both countries.
The market share of the marketers of lubricants in selected African countries is shown in the table
below. The information is relatively dated, but it takes time to build market share in a country so
that the major market players are unlikely to have changed.
Estimated Market Share of Selected African Countries
South & East Africa Lubricants Estimated 2000 Market ShareBP CALT EX CFP ENGEN SHELL CAST ROL
Botswana Est Ma rke t Share 27.4% 14.8% 6.4% 20.4% 30.6% 0.4%BP Mobil Ca ltex T ota l Int.
Ma lawi Est Marke t Share 55.4% 29.0% 7.5% 8.1%BP P'Moc Mobil T ota l Moçacor Others
Moza mbique Est Marke t Share 57.9% 10.2% 12.8% 7.9% 0.7% 10.5%BP SHELL CALT EX ENGEN OT HER T OT AL
Namibia Est Marke t Share 17.5% 31.2% 22.7% 13.5% 8.7% 6.4%BP Agip Gapco Gapoil T ota l Na toil Elf Oil Mobil
T anzania Est Marke t Share 27.2% 40.8% 1.1% 4.7% 20.5% 0.4% 4.4% 0.8%BP Caltex Agip T ota l Mobil Jove nna Ody's Engen
Zambia Est Ma rke t Share 70.8% 11.0% 4.0% 5.0% 9.1% 0.2% 0.0% 0.0%
The following table shows the relative socio-economic performance of South Africa and its fellow
member countries in the Southern African Development Community.
SADC relative Socio-Economic Performance
SADC Statistics GNI PER CAPITA
GDP GDP GROWTH
POPULATION INFLATION - (GDP
DEFLATOR)
LIFE EXPECTANCY
AT BIRTH
LAND AREA
2008 US$ 2008 US$billion
2008% on 2007
2008 millions 2008% 2007 years km2 -000's
SEYCHELLES $ 10 290 $ 0.8 3.0% 0.1 25.0% 73 0.5BOTSWANA $ 6 470 $ 13.0 -1.0% 1.9 17.0% 51 581.7MAURITIUS $ 6 400 $ 8.7 5.0% 1.3 8.0% 72 2.0RSA $ 5 820 $ 276.8 3.0% 48.7 11.0% 50 1 219.1NAMIBIA $ 4 200 $ 8.6 3.0% 2.1 12.0% 53 824.3ANGOLA $ 3 450 $ 83.4 15.0% 18.0 20.0% 47 1 246.7SWAZILAND $ 2 520 $ 2.6 2.0% 1.2 3.0% 46 17.3LESOTHO $ 1 080 $ 1.6 4.0% 2.0 10.0% 43 30.4ZAMBIA $ 950 $ 14.3 6.0% 12.6 11.0% 45 752.6TANZANIA $ 440 $ 20.5 7.0% 42.5 9.0% 55 945.1MADAGASCAR $ 410 $ 9.0 7.0% 19.1 10.0% 60 587.0MOZAMBIQUE $ 370 $ 9.7 6.0% 21.8 7.0% 42 801.6MALAWI $ 290 $ 4.3 10.0% 14.3 9.0% 48 118.5CONGO, DEM REP $ 150 $ 11.6 6.0% 64.2 19.0% 46 2 344.9ZIMBABWE 12.5 44 390.8AVERAGE SADC $ 3 060 $ 33 5% 17.5 12% 52 657.5 TOTAL SADC $ 451.1 260.3 9 280.3EURO AREA $ 38 821 $ 13 565.5 1.0% 325.9 3.0% 80 2 585.2
Source: World Bank, World Development Indicators 2008
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The demand growth and drivers in the next five years in the Southern African Region will hinge on
progress of the demand for the output for the products in the Retail and Commercial sectors which
consume lubricants. Vehicle sales in most countries particularly north of the Limpopo come off a
very low base and there is huge potential for a structural shift upwards as these economies
continue to grow as they have in the past couple of years. Similarly industry is underdeveloped and
if the countries are able to break out of the poverty cycle there is much potential. The barriers to
entry comprise the poor infrastructure and underdeveloped markets, as well as the lack of scale. It
is important for a lubricants marketer to have a firm foothold in South Africa from which to base
any move into Africa north of the Limpopo.
4.3 International
The likelihood is that crude oil prices will remain high with the emerging economy giants of China
and India having 40% of the world’s population and growing at around 7% to 10% per annum.
Both require imported crude oil as they have little reserves of their own and political uncertainty in
oil-producing countries continues to cause uncertainty and rising costs. This means that liquid fuel
import costs will continue to displace other factors of production and reap economic rent for
countries with reserves of crude oil and impoverish countries that need to import this commodity.
5 SWOT ANALYSIS
♦ Strengths
o The liquid fuels sector is world class and is operated by most of the world’s largest
multinational corporations.
o The logistics of this sector adequately provides fuel and lubricants across the wide
expanse of South Africa and its closest neighbouring countries.
o This sector provides fuel and lubricants which meet international specifications in
terms of quality and safety.
♦ Weaknesses
o The newest crude oil refinery was built 40 years ago and the oldest 60 years ago.
o Little investment in logistics and infrastructure has taken place in the past 20 years.
o A refinery is capital intensive and carries high fixed costs and it must therefore be
run at high capacity to cover these costs.
o All refineries are operating at full capacity and more and more imports are
necessary.
♦ Opportunities
o The regulatory regime has been revised to a more transparent and fair system to
encourage investment by all parties not merely oil multinationals.
o Investment in refining and/or import facilities.
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o Oil multinationals are divesting of pieces of their businesses allowing local/BEE
companies to enter the oil arena.
♦ Threats
o Crude oil and petroleum product prices have remained high and threaten to lower
oil intensity in production and lead to more oil efficiency.
o Biofuels are likely to increase in usage in the next 20 to 30 years.
o Oil reserves will peak and then fall and production will begin to decline as big
consumers such as China and India take the place of previous large markets such
as the USA and Europe.
6 FUTURE OUTLOOK
The new regulatory structure discussed above should encourage more players to enter the liquid
fuels industry which will assist in meeting the goals of providing refined petroleum products at the
cheapest possible cost to the consumer with a fair return to the Petroleum Industry.
South Africa needs significant investment in the Liquid Fuels Sector. All refineries are operating at
capacity and significant refined petroleum product is being imported. The problem of supply inland
has recently been solved with the introduction of the NMPP from Durban to Gauteng. However, not
before extensive, expensive road bridging had to take place. A new refinery is needed and PetroSA
seeks to build a 400,000 barrel a day crude refinery at Coega, to be ready in 2017. It is expected
to cost $11 billion and is currently at the pre-feasibility stage. However this will not be before some
8 to 10 billion litres or 25% of demand is being imported annually.
The challenges of burgeoning demand requiring urgent investment particularly in logistics to cope
with higher imports and competitive reward for this investment via the regulatory system, while
still maintaining the lowest possible price to the consumer, make this strategic sector vulnerable to
underperformance in the short to medium term. In the medium to longer term decisions must be
made about domestic refinery capacity and the relative cost of building a new refinery versus
importing refined petroleum product on a large scale and the security of supply issues that comes
with this. South Africa is a developing country and questions concerning whether or not can it
afford to spend $11bn building a new refinery which would have to export refined petroleum
product at a loss at times have been raised.
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7 ASSOCIATIONS AND REFERENCES
♦ South African Petroleum Industry Association (SAPIA)
Mr Avhapfani Tshifularo
Tel: +27 11 783 7664
Website: http://www.sapia.co.za
♦ Fuel Retailers’ Association
Mr Reggie Sibiya
Tel: +27 11 886 2664
Email: reggie.sibiya@fra.org.za
♦ National Electricity Regulator
Mr Nhlanhla Cebekhulu
Tel: +27 12 401 4768
♦ Department of Energy
Mr Ntuthuzelo Fikela
Tel: +27 12 317 8647
Website: http://www.energy.gov.za
♦ http://www.fischer-
tropsch.org/primary_documents/presentations/acs2001_chicago/chic_slide01.htm
♦ Sasol 2011 Annual Report
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APPENDIX 1
Typical Refinery Operation
[Source: BPSA]
The Sasol synfuel plants at Secunda in Mpumalanga operate the world’s only commercial coal-
based synfuels manufacturing facilities. These produce synthesis gas through coal gasification and
natural gas reforming using the Fischer-Tropsch conversion technology. Syngas is a mixture of
carbon monoxide and hydrogen. Using a catalyst, the Fischer-Tropsch reaction coverts syngas into
feedstock to produce liquid fuels. PetroSA converts natural gas into liquid fuels. These two
processes produce far more high octane and thus more valuable products and little fuel oil. The
diagrams below outline the two synthetic processes.
CrudeOil
Other Feeds
Losses Fixed Costs-$
LPGPetrolNaphtha
KeroseneDiesel/Gas Oil
LubesWaxesBitumenHeavy Fuel Oil/MFO
Products+$
Fuel Gas and Oil
EnergyIncreasingBoiling Pt &Molecular wt
CrudeOil
Other Feeds
Losses Fixed Costs-$
LPGPetrolNaphtha
KeroseneDiesel/Gas Oil
LubesWaxesBitumenHeavy Fuel Oil/MFO
Products+$
Fuel Gas and Oil
EnergyIncreasingBoiling Pt &Molecular wt
what is a refinery?
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Coal to Liquid Fuels Synthetic Refining Process
Coal to Liquids Refining
CoalGasification
GasClean-up
HTFTSyntholProcess
ConventionalRefining:Cat ReformingCat PolyHydrogenation
SynCrude
Gas feedstock for Petrochemicals
LPG
Petrol
Oxygen
Steam
CoalClean GasGas
Jet / Paraffin
Diesel
Fuel Oil
Alcohols
[Source: IPSR]
Natural Gas to Liquid Fuels Synthetic Refining Process
Gas to Liquids Refining
GasReforming
HTFTSyntholProcess
ConventionalRefining:Cat ReformingCODAlkylationIsomerisationHydrogenation
Clean Gas
SynCrude
Gas feedstock for Petrochemicals
NaturalGas
Oxygen
Steam
LPG
Petrol
Jet / Paraffin
Diesel
Fuel Oil
Alcohols
[Source: IPSR]
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ORGANOGRAM
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in th
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ICA
NTS
SI
CC
OD
E 3
32 –
Febr
uary
201
2
©C
opyr
ight
Who
Ow
ns W
hom
(Pty
) Ltd
Whi
lst e
very
car
e ha
s be
en ta
ken
in c
ompi
ling
this
or
gano
gram
, the
com
pany
doe
s no
t acc
ept
liabi
lity
of a
ny n
atur
e in
the
even
t of e
rror
s or
om
issi
ons.
Che
vron
Glo
bal
Ener
gy In
cB
EE C
onso
rtium
CH
EVR
ON
SO
UTH
FR
ICA
(PTY
) LTD
Empl
oyee
s :
1 5
00Es
t. Tu
rnov
er: R
67,1
25.4
m (2
009)
Pro
duct
ion:
110
000
bar
rels
/ da
y
23%
75%
ENG
EN P
ETR
OLE
UM
LTD
Empl
oyee
s :
3 3
79Es
t. Tu
rnov
er: R
73,0
03.0
m (2
009)
Prod
uctio
n: 1
25 0
00 b
arre
ls /
day
Pro
duce
s, th
roug
h th
e pr
oces
s of
refin
ing
crud
e oi
l, pr
imar
y re
fined
pet
role
um p
rodu
cts,
incl
udin
g ga
s, o
ils,
fuel
s, p
etro
ls, d
iese
ls, p
araf
fins,
furn
ace
oils
, liq
uid
petro
leum
gas
, lub
rican
ts, s
peci
alis
edlu
bric
ants
, gr
ease
s, g
reas
es w
ith s
ynth
etic
add
itive
s, c
oola
nts
and
brak
e flu
ids.
Pro
duct
s ar
e so
ld th
roug
h th
e E
ngen
Mar
ketin
g di
visi
on o
f Eng
enP
etro
leum
. B
rand
Nam
es:
Sas
ol O
il (P
ty) L
td
NAT
ION
AL P
ETR
OLE
UM
REF
INER
IES
OF
SA (P
TY) L
TDEm
ploy
ees
: 5
73P
rodu
ctio
n: 1
08 5
00 b
arre
ls /
day
63.6
4%36
.36%
Und
erta
kes
the
refin
ing
of c
rude
oil,
on
beha
lf of
its
shar
ehol
ders
, for
a p
roce
ssin
g fe
e. It
is e
quip
ped
with
so
phis
ticat
ed c
onve
rsio
n un
its w
hich
tran
sfor
m c
rude
oi
l to
petro
l, je
t fue
l and
die
sel.
The
refin
ery
is lo
cate
d ab
out 5
00km
inla
nd a
nd w
ithin
a h
undr
ed k
ilom
eter
s of
Joh
anne
sbur
g. C
rude
oil
is tr
ansp
orte
d to
Sa
solb
urg
by m
eans
of a
pip
elin
e w
hich
runs
from
D
urba
n.
Bra
nd N
ames
:
She
ll S
outh
Afri
ca
Hol
ding
s (P
ty) L
td
BP
Sou
ther
n A
frica
(Pty
) Ltd
SHEL
L &
BP
SA P
ETR
OLE
UM
REF
INER
Y(P
TY) L
TDEm
ploy
ees
: 7
30P
rodu
ctio
n: 1
80 0
00 b
arre
ls /
day
50%
50%
The
larg
est c
ompl
ex o
il re
finer
y in
Sou
th A
frica
and
pr
oduc
es le
aded
and
unl
eade
d fu
els,
low
sul
phur
dies
el, l
ubric
ants
, asp
halt
prod
uct s
late
, alip
hatic
hy
droc
arbo
n so
lven
ts a
nd in
dust
rial p
roce
ssin
g oi
ls
and
sulp
hur.
Cap
acity
is 3
5% o
f SA
tota
l. B
rand
Nam
es:
Che
vron
Cor
pora
tion
US
A
100%
Eng
enLt
d
Sas
ol L
td
75%
100%
2%
Empl
oyee
s S
hare
Trus
t
Wor
ldw
ide
Afri
can
Inve
stm
ent
Hol
ding
s (P
ty) L
td (W
AIH
)
Pet
rona
sIn
tern
atio
nal
Cor
pora
tion
Ltd
80%
Afric
Ene
rgy
Res
ourc
es (P
ty) L
td
20%
100%
BP
Plc
-75
%M
inew
orke
rs In
vest
men
t C
ompa
ny (P
ty) L
td -
17.5
%W
omen
sD
evel
opm
ent B
ank
-7.5
%
SASO
L W
AX
(Div
of S
asol
Che
mic
al In
dust
ries
Ltd)
Em
ploy
ees
: 5
00E
st. T
urno
ver:
R2.
5m(2
011)
Invo
lved
in th
e m
anuf
actu
re o
f wax
and
par
affin
, whi
ch
is re
taile
d to
loca
l can
dle
man
ufac
ture
rs a
nd a
lso
expo
rts w
ax to
ove
rsea
s cl
ient
s w
ho m
anuf
actu
re in
ks,
adhe
sive
s an
d pa
raffi
n.
Gov
ernm
ent E
mpl
oyee
s P
ensi
on F
und
-13.
3%In
dust
rial D
evel
opm
ent C
orpo
ratio
n of
Sou
th A
frica
Ltd
-7.
9%
TOTA
L SO
UTH
AFR
ICA
(PTY
) LTD
Empl
oyee
s :
800
Invo
lved
in th
e m
anuf
actu
re, m
arke
ting
and
dist
ribut
ion
of p
etro
leum
pro
duct
s as
wel
l as
the
man
ufac
ture
and
dis
tribu
tion
of lu
bric
atin
g oi
ls a
nd
grea
se.
Tota
l Ove
rsea
s H
oldi
ng (P
ty) L
td -
50.1
%M
ain
Stre
et 8
7 (P
ty) L
td -
25%
Indu
stria
l Par
tner
ship
Inve
stm
ents
Ltd
-24
.9%
VALV
OLI
NE
SOU
TH A
FRIC
A (P
TY) L
TDEm
ploy
ees
: 1
5
Invo
lved
in th
e m
anuf
actu
re, m
arke
ting
and
dist
ribut
ion
of p
etro
leum
pro
duct
s as
wel
l as
the
man
ufac
ture
and
dis
tribu
tion
of lu
bric
atin
g oi
ls a
nd
grea
se.
Ash
land
Inc
Page
1 o
f 2
Manufacture of Petrol and Lubricants Page 27 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
MA
NU
FAC
TUR
E O
F PE
TRO
L A
ND
LU
BR
ICA
NTS
SI
CC
OD
E 3
32 –
Febr
uary
201
2
©C
opyr
ight
Who
Ow
ns W
hom
(Pty
) Ltd
FUC
HS
LUB
RIC
ANTS
(SO
UTH
AFR
ICA)
(P
TY) L
TDEm
ploy
ees
: 1
17
Inde
pend
ent m
anuf
actu
rer a
nd d
istri
buto
r of
spec
ialis
ed a
utom
otiv
e an
d in
dust
rial l
ubric
ants
an
d gr
ease
s, s
uppl
ying
clie
nts
in th
e au
tom
otiv
e an
d m
inin
g in
dust
ries.
GER
M A
FRIC
A (P
TY) L
TDEm
ploy
ees
: 2
7
Invo
lved
in th
e im
porta
tion,
ble
ndin
g an
d di
strib
utio
n of
spe
cial
ised
indu
stria
l lub
rican
ts
H A
ND
R S
OU
TH A
FRIC
A (P
TY) L
TD
Empl
oyee
s :
36
invo
lved
in th
e m
anuf
actu
re a
nd w
hole
sale
of c
ore
petro
leum
pro
duct
s, c
ompr
isin
g:•B
ase
oils
•Pet
role
um je
lly•P
roce
ss o
ils•A
gric
ultu
ral s
pray
oils
•Wax
pro
duct
s
H &
R W
asag
AG
100
%
IND
Y O
IL S
A (P
TY) L
TD
Empl
oyee
s :
57
Invo
lved
in th
e m
anuf
actu
re o
f aut
omot
ive
oils
an
d in
dust
rial l
ubric
ants
, as
wel
l as
chem
ical
cl
eane
rs a
nd o
rgan
ic o
ils.
The
Scar
boro
ugh
Fam
ily T
rust 100%
KZN
OIL
S (P
TY) L
TD
Empl
oyee
s :
84
Invo
lved
in th
e w
hole
sale
and
dis
tribu
tion
of
indu
stria
l, m
arin
e an
d au
tom
otiv
e fu
el a
nd o
il.
Mr R
Red
dy
74%
Pha
pham
a
26%
PETR
OLE
UM
MAR
KET
ING
O
RG
ANIZ
ATIO
N (P
TY) L
TDEm
ploy
ees
: 42
Man
ufac
ture
s an
d di
strib
utes
com
poun
ded
and
blen
ded
lubr
icat
ing
oils
as
wel
l as
grea
ses.
PIST
ON
PO
WER
CH
EMIC
ALS
CC
inde
pend
ent m
anuf
actu
rer o
f lub
rican
ts w
ith
auto
mot
ive,
agr
icul
tura
l and
indu
stria
l ap
plic
atio
ns.
Deo
jay
Hol
ding
s (P
ty) L
td
DEO
JAY
PETR
OLE
UM
KZN
(PTY
) LTD
Em
ploy
ees
: 1
0
100%
Spe
cial
ize
in th
e m
arke
ting
and
dist
ribut
ion
of
inte
rnat
iona
lly b
rand
ed lu
bric
ants
.
Kat
hgar
Trus
t
BLU
E C
HIP
LU
BR
ICAN
TS (P
TY) L
TDEm
ploy
ees
: 3
0
100%
Man
ufac
ture
r of i
ndus
trial
and
spe
cial
ised
oil
lubr
ican
ts, w
hich
are
sup
plie
d to
the
min
ing,
au
tom
otiv
e an
d ot
her i
ndus
tries
.
SPAN
JAAR
D L
TDEm
ploy
ees
: 10
7E
st. T
urno
ver:
R10
2.1m
(201
1)
Man
ufac
ture
r and
dis
tribu
tor o
f spe
cial
ised
lu
bric
ants
and
allie
d ch
emic
al p
rodu
cts
for t
he
indu
stria
l, au
tom
otiv
e, m
arin
e an
d m
inin
g m
arke
ts.
Span
jaar
dG
roup
Ltd
-55
.3%
Ms
E N
epge
n-8
.7%
Mr R
JW S
panj
aard
-8.4
%
CEF
(Pty
) Ltd
THE
PETR
OLE
UM
OIL
& G
AS C
OR
POR
ATIO
N
OF
SA (P
TY) L
TD
t/a P
ETR
OSA
Empl
oyee
s :
1 8
36E
st. T
urno
ver:
R10
,565
.0m
(201
1)Pr
oduc
tion:
45
000
barre
ls /
day
100%
Invo
lved
in th
e ex
plor
atio
n an
d pr
oduc
tion
of o
il an
d ga
s, a
nd th
e pr
oduc
tion
and
mar
ketin
g of
syn
thet
ic
fuel
s an
d pe
troch
emic
als.
Maj
or c
lient
s in
clud
e C
alte
x,
Eng
enan
d S
hell.
Dep
artm
ent o
f Min
eral
s &
Ene
rgy
100%
Page
2 o
f 2W
hils
t eve
ry c
are
has
been
take
n in
com
pilin
g th
is
orga
nogr
am, t
he c
ompa
ny d
oes
not a
ccep
t lia
bilit
yof
any
nat
ure
in th
e ev
ent o
f err
ors
or o
mis
sion
s.
Manufacture of Petrol and Lubricants Page 28 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
COMPANY PROFILES
BLUE CHIP LUBRICANTS (PTY) LTD
Reg. Number: 1983/001294/07
VAT Number: 4690105061
BEE Rating: Level 4 BBBEE Rating Agency Updated: 2012-02-03
Postal Address: Physical Address:
P O Box 940, North Riding
2162
Units 10, 11 & 12, First Floor, Executive City
Industrial Road, Kya Sand, 2169
Tel: +27 11 462 1829 Fax.: +27 11 704 1367
Email: info@bcl.co.za Website: www.bcl.co.za
Shareholders
Shareholder Percentage
Kathgar Trust 100.00
Management
Name Position Email Appointed
Ms Chrissie Froneman Franchise & Marketing Manager
Ms Kathleen Marais Executive Director kathleen@bcl.co.za
Mr Gary Victor Marais Managing Director
History of Business
Blue Chip Lubricants (Pty) Ltd was registered in February 1983 as Stryde Lubricants (Pty) Ltd. The
company underwent a name change on 29 September 1989 to Blue Chip Lubricants (Pty) Ltd.
Nature of Business
Blue Chip Lubricants (Pty) Ltd is a manufacturer of industrial and specialised oil lubricants, which
are supplied to the mining, automotive and other industries.
Nr. of Employees 30
Banks Standard Bank of South Africa Ltd
Auditors Alchemy Financial Services
Brandnames
Blue Chip Lubricants
Manufacture of Petrol and Lubricants Page 29 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
CHEVRON SOUTH AFRICA (PTY) LTD
Trading As: Caltex
Reg. Number: 1911/001154/07
VAT Number: 4460101563 Updated: 2012-02-09
Postal Address: Physical Address:
PO Box 714, Cape Town
8000
Chevron House, 19 DF Malan Street
Foreshore, Cape Town, 8001
Tel: +27 21 403 7911 Fax.: +27 21 403 0550
Email: queries@chevron.com Website: www.chevron.com
Shareholders
Shareholder Percentage
Chevron Corporation USA via Chevron Global Energy Inc 75.00
BEE Consortium 23.00
Employee Trust 2.00
Management
Name Position Email Appointed
Mr B Forbes Director
Ms Yoliswa Pumla Balfour Non-Executive Director 2003-03-10
Ms Teresa Booth-Oliveira Commercial Manager
Ms Colleen Carr Human Resources Manager
Mr Martin Nigel Andrew
Donohue Chief Executive Officer 2010-05-01
Mr Kevin John Mulder Executive Director
Mr SPA Parker Director 2010-09-10
Mr Shashi Rabbipal Alternate Director 2008-11-01
Mr Mashudu Elias Ramano Non-Executive Director 2003-03-10
Mr Mpho Innocent Scott Non-Executive Director 2003-03-10
Mr James Kiki Seutloadi Executive Chairman
Mr Trevor John Stallbom Executive Director 2010-07-01
Mr Arthur Peter Wilson Financial Director
Manufacture of Petrol and Lubricants Page 30 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
History of Business
Chevron South Africa (Pty) Ltd was established in May 1911 as The Texas Company (South Africa)
Ltd. On 27 December 1940, the name was changed to Caltex (Africa) Ltd. A further name change
occurred on 4 November 1964 to Caltex Oil (SA) Ltd. However, on 15 June 1975, the company
converted to a private company and on 1 October 2005 Caltex Oil (SA) (Pty) Ltd underwent a
name change to Chevron South Africa (Pty) Ltd t/a Caltex.
Nature of Business
Chevron South Africa (Pty) Ltd t/a Caltex is involved in the refining and distribution of petroleum
products such as petrol, diesel, power paraffin, oils, and grease which are sold under the brand
name Caltex, to filling stations, retail outlets and co-operatives. The company has 50 to 60 depots,
800 retail outlets, 21 terminals and a fleet of 90 tanker trucks situated countrywide. It also
operates laboratories at the refinery and other plants. The refinery produces approximately 100
000 barrels of crude oil per day of which 95% becomes petroleum.
Nr. of Employees 1 200
Empowerment
Stake
25% (Black Empowerment Consortium - 23%; Employees Share Trust -
2%)
Secretary Mr Nazeem Hendricks
Banks First National Bank (a division of FirstRand Bank Ltd)
Auditors PricewaterhouseCoopers
Corporate Governance in Relation to AIDS Policy
Chevron South Africa (Pty) Ltd t/a Caltex has an HIV/AIDS awareness programme that supports
and educates employees and their families. The company offers voluntary HIV/AIDS testing and
encourages staff that test negative to stay that way. Those who test positive are educated how to
stay healthy and productive for longer.
Production Capacity
100 000 barrels of fuel per day
Brandnames
Caltex, Chevron, Techron, Texaco
Trademarks
Caltex, Chevron, Techron, Texaco
Distribution Rights
Caltex, Chevron, Techron, Texaco
Subsidiaries, Associates & Investments
Name Percentage
Coal Resources (Pty) Ltd 100.00
Manufacture of Petrol and Lubricants Page 31 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
DEOJAY PETROLEUM KZN (PTY) LTD
Reg. Number: 2004/007140/07
VAT Number: 4950143992
BEE Rating: Level 2 Emex Updated: 2012-02-06
Postal Address: Physical Address:
PO Box 201654, Durban North
4016
Unit 3A, Rinaldo Industrial Park
50 Moreland Drive, Durban North, 4051
Tel: +27 31 569 1276 Fax.: +27 31 569 1277
Email: jackie@deojay.co.za Website: www.deojay-petroleum.co.za
Shareholders
Shareholder Percentage
Deojay Holdings (Pty) Ltd 100.00
Management
Name Position Email Appointed
Mr Jacobus (Jackie) Frederick
le Roux Managing Director jackie@deojay.co.za 2004-03-16
Ms Nisha Reddy Financial Manager
Mr Colin Wright Technical & Sales Manager
History of Business
Deojay Consultants cc was established in July 1994. In March 2004, the company converted to a
private company and underwent a name change to Deojay Petroleum KZN (Pty) Ltd.
Nature of Business
Deojay Petroleum KZN (Pty) Ltd specialises in the marketing and distribution of internationally
branded lubricants including its own Deojay Brand range of Automotive and Industrial Lubricants.
Nr. of Employees 10 Permanent
Banks Standard Bank of South Africa Ltd
Auditors Grant Thornton
Brandnames
Deojay
Manufacture of Petrol and Lubricants Page 32 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
ENGEN PETROLEUM LTD
Reg. Number: 1989/003754/06
VAT Number: 4820101451
BEE Rating: Level 3 AQRate Updated: 2012-02-09
Postal Address: Physical Address:
PO Box 35, Cape Town
7525
Engen Court, Thibault Square, Cnr Riebeeck &
Long Streets, Cape Town, 8001
Tel: +27 21 403 4911 Fax.: +27 21 403 4067
Email: info@engen.com Website: www.engen.co.za
Branches
Branch Area Head Tel
Engen Petroleum - Bloemfontein Free State
Engen Petroleum - Durban Oil Refinery KwaZulu-Natal
Engen Petroleum - Durban Regional Office KwaZulu-Natal
Engen Petroleum - Johannesburg Gauteng
Engen Petroleum - Port Elizabeth District Office Eastern Cape
Divisions
Division Area Head Tel
Communications
Corporate Affairs
Corporate Planning
Enterprise Risk & Assurance
Financial Service
HSEQ
Human Capital
International Business Development
Lubricants
Refinery
Sales & Marketing
Supply, Trading & Optimisation
Shareholders
Shareholder Percentage
Engen Ltd (Held by Petronas International Corporation Ltd - 80%; Pembani) Undisclosed
Manufacture of Petrol and Lubricants Page 33 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Management
Name Position Email Appointed
Mr Mogamat Adnan
Adams
General Manager: Enterprise Risk &
Assurance 2007-12-01
Mr Kamal Bahrin Bin
Ahmad General Manager: Refinery 2011-01-14
Mr Andrew Muir Bryce General Manager: Financial Services 2006-12-01
Mr Lungile Adonijah
Dumse General Manager: Human Capital 2004-12-01
Mr Wayne Patrick
Hartmann
General Manager: International
Business Development 2001-09-09
Ms Tania Landsberg Group Communications Manager tania.lansberg@
engenoil.com
Mr Nkosinathi (Natie)
Martin Maphanga General Manager: Corporate Affairs 2008-04-01
Ms Bulelwa Payi Executive: Communications
Dr Thangaratnam (Bea)
Ponnudurai General Manager: HSEQ 2008-04-01
Ms Ivershini Reddy General Manager: Supply, Trading &
Optimisation 2007-10-01
Mr Nizam Salleh Chief Executive Officer & Managing
Director
Ms Vuyelwa Sono Executive: BEE & Government
Relations
vuyelwa.sono@
engenoil.com
Mr Stephen (Steve) Paul
Williams General Manager: Lubricants 2009-01-01
Mr David (Dave) William
Wright
General Manager: Corporate
Planning 2006-03-24
Mr Vukile Vezithemba
Zondani
General Manager: Engen Sales &
Marketing 2006-12-01
History of Business
The company was established in 1989 as Unicorn Petroleum Ltd and underwent a name change to
Genref Ltd at a later stage. In January 1990, the name was changed to Engen Petroleum Ltd. In
1993, Trek Petroleum, Sonap and Mobil were consolidated into the company. In February 2007, the
assets and operations of Zenex Oil (Pty) Ltd were acquired and incorporated.
Manufacture of Petrol and Lubricants Page 34 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Nature of Business
Engen Petroleum Ltd produces through the process of refining crude oil, primary refined petroleum
products which include LPG, chemicals, oils, fuels, petrols, diesels, paraffins, furnace oils, liquid
petroleum gas, lubricants, specialised lubricants, greases, greases with synthetic additives,
coolants and brake fluids. Products are sold locally through the Engen Sales & Marketing Division in
South Africa and internationally through its International Business Division which has a wider
footprint in sub-Saharan Africa.
Engen processes approximately 135 000 barrels of fuel per day and has 1 400 service station
dealers.
Nr. of Employees 3 379 (Group) 617 - Refinery
Secretary Ms Fiona Gumede
Banks Standard Bank of South Africa Ltd
Auditors Ernst & Young
Corporate Governance in Relation to AIDS Policy
Engen has an HIV/AIDS policy that:
♦ Provides programmes and activities aimed at HIV/AIDS prevention.
♦ Provides support services ensuring affordable and accessible HIV-related healthcare to all
employees.
♦ Comprehensively manages and supports those infected.
♦ Protects the rights of employees with HIV/AIDS, including access to work and privacy of
information.
Production Capacity
135 000 barrels of fuel per day.
Brandnames
1 Plus, 1 Stop, Dieselube, Dynamic, Engen, Engen Diesel Club (EDC), Engen Xtreme, Gearlube,
Quickshop, Truckstop, Xtreme
Manufacture of Petrol and Lubricants Page 35 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
FUCHS LUBRICANTS (SOUTH AFRICA) (PTY) LTD
Reg. Number: 1979/003105/07
VAT Number: 4010101253
BEE Rating: Level 8 BEE Rating Solutions Updated: 0000-00-00
Postal Address: Physical Address:
07 Diesel Road, Isando
Gauteng,1609
PO Box, Isando
Kempton Park, Johannesburg, 1600
Tel: +27 11 565 9600 Fax.: +27 11 392 5686
Email: Website: www.fuchsoil.co.za
Branches
Branch Area Head Tel
Fuchs Bulawayo Zimbabwe +26 39 62434
Fuchs Durban Durban +27 31 2040700
Fuchs Lusaka Zambia +26 12 38411
Fuchs Port Elizabeth Port Elizabeth +27 41 5411586
Fuchs Welkom Welkom +27 57 3964221
Fuchs Zimbabwe Zimbabwe +26 34 751304
Management
Name Position Email Appointed
Mr Stefan Fuchs Chairman
Dr Lutz Lideman
Dr Georg Lingg
Dr Ralph Rheinboldt
Dr Alexander Selent Deputy Chairman
History of Business
Maxei Oil Refineries (Pty) Ltd was established in June 1979 and was subsequently sold to Mr Frank
Kleinman, who changed the name to National Oil (Pty) Ltd. During 1992 the company's name was
again changed to Fuchs Lubricants (South Africa) (Pty) Ltd, when the German based multinational
company Fuchs PetroLub AG (which is listed on both the Frankfurt and Swiss stock exchanges)
acquired 100% of the shares in National Oil (Pty) Ltd. At the same time the local operations of the
multinational company Century Oils (Pty) Ltd were merged into the local Fuchs operations. At this
time the Noxal Company (Pty) Ltd, a specialist grease manufacturing company, that has been in
existence in South Africa since 1921, was also acquired by Fuchs PetroLub AG and merged with the
local Fuchs operations. All trading operations ceased in Century Oils (Pty) Ltd and Noxal Company
(Pty) Ltd, and the latter companies currently only hold property.
Manufacture of Petrol and Lubricants Page 36 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Nature of Business
Fuchs Lubricants (South Africa) (Pty) Ltd is the largest independent manufacturer and distributor of
specialised automotive and industrial lubricants and greases, supplying clients in the automotive
and mining industries. The company also undertakes the manufacture of Valvoline, Case and New
Holland products on a toll blending basis. Brand names utilised include WM Penn, Fuchs, Titan,
Reniso, Planto, Silkolane, Lublex, Renolin and Ceplatyn. Clients include Valvoline SA, Special
Products, The Oil Shoppe, Harmony Gold Mining Company and Fincham Industrial Supplies.
Nr. of Employees 117
Banks Standard Bank of South Africa Ltd
Auditors KPMG Inc
Manufacture of Petrol and Lubricants Page 37 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
GERM AFRICA (PTY) LTD
Reg. Number: 1938/011133/07
VAT Number: 4880118569
BEE Rating: Level 4 Updated: 2012-02-21
Postal Address: Physical Address:
PO BOX 2, Linmeyer
2105
3 Sandown Valley Crescent, Benmore
Gauteng, 2010
Tel: +27 11 435 0348 Fax.: +27 11 435 4059
Email: Website: www.germafrica.co.za
Branches
Branch Area Head Tel
Durban Branch Kwazulu- Natal
Management
Name Position Email Appointed
Ms C Gomes Director 2011-12-05
Mr JC Haslam Director 2011-12-05
Mr RJC Haslam Director 2011-12-05
Mr DB Mulinder Director 1977-09-12
History of Business
Germ Africa (Pty) Ltd was established in May 1938 as Germ Lubricants Africa (Pty) Ltd. The name
was changed to Germ Africa (Pty) Ltd in December 1996.
Nature of Business
Germ Africa (Pty) Ltd is involved in the importation, blending and distribution of specialised
industrial lubricants in the Southern African region. It operates three divisions namely, Industrial
Lubricants, Filtration and Pumps.
Nr. of Employees 27
Banks First National Bank (a division of FirstRand Bank Ltd)
Auditors Horwath Leverton Boner
Distribution Rights
Caltex, Chevron, Techron, Texaco
Subsidiaries, Associates & Investments
Name Percentage
Filterwell Industrials (Pty) Ltd 100.00
Manufacture of Petrol and Lubricants Page 38 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
H AND R SOUTH AFRICA (PTY) LTD
Reg. Number: 2004/004800/07
VAT Number: 4130213079 Updated: 2012-02-03
Postal Address: Physical Address:
PO Box 21575, Bluff
4036
113 Trinidad Road, Island View
Bluff, 4052
Tel: +27 31 466 8700 Fax.: +27 31 466 8716
Email: sasales@hur.com Website: www.hur.com
Shareholders
Shareholder Percentage
H & R Wasag AG 100.00
Management
Name Position Email Appointed
Mr Neils Heinz Hansen Group Chief Executive Officer 2004-07-01
Mr Deyar Natha Non-Executive Director 2006-07-01
Mr Stephan James Parkinson Non-Executive Director 2007-07-02
Mr Rudi van Niekerk Sales & Marketing Manager rudi.vanniekerk@
hur.com
Mr Clive Richard Wood Regional Chief Executive
Officer clive.wood@hur.com 2009-01-28
History of Business
H and R Global Special Products (Pty) Ltd was established in June 2004, when the operations of
Special Products (Division of BP South Africa), were acquired and incorporated into a shelf
company named Danman Investments Five (Pty) Ltd, changing the name to H and R Global Special
Products (Pty) Ltd. The company underwent a name change to H and R South Africa (Pty) Ltd on
16 April 2007.
Nature of Business
H and R South Africa (Pty) Ltd is involved in the manufacture and wholesale of core petroleum
products, comprising:
♦ Base oils
♦ Petroleum jelly
♦ Process oils
♦ Agricultural spray oils
♦ Wax products
Manufacture of Petrol and Lubricants Page 39 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Nr. of Employees 36
Banks Nedbank Ltd (a division of the Nedbank Group Ltd); Standard Bank of South
Africa Ltd
Auditors PricewaterhouseCoopers Inc.
Estimated Profit R20.4m (Net)
Target Market
Supplies products to the following industries:
♦ Agricultural
♦ Personal Care
♦ Pharmaceutical
♦ Petroleum
Brandnames
AMPRON, Dussek Campbell, MEDSO, PIONIER, TUDALEN, VIVASHIELD, VIVATEC
Manufacture of Petrol and Lubricants Page 40 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
INDY OIL SA (PTY) LTD
Reg. Number: 1999/016319/07
VAT Number: 4870186444
BEE Rating: Level 8 Empowerdex Updated: 2012-02-03
Postal Address: Physical Address:
P O Box 620, Milnerton
7435
4 Platinum Road, Milnerton
7441
Tel: +27 21 552 2330 Fax.: +27 21 552 2879
Email: info@indyoil.co.za Website: www.indyoil.co.za
Branches
Branch Area Head Tel
Indy Oil Durban KwaZulu-Natal Ian Cooney +27 31 944 1923
Indy Oil Johannesburg Gauteng Adam Williamson +27 11 392 3111
Shareholders
Shareholder Percentage
The Scarborough Family Trust 100.00
Management
Name Position Email Appointed
Mr Ian Cooney Branch Manager - Durban
Mr Robbie Diamond Sales Manager
Mr Howard Edwards Financial Manager howard@indyoil.co.za
Ms Jacqueline Yvonne
Pothecary Executive Director
Mr Trevor Hayward Pothecary Executive Director
Mr Adam Williamson Branch Manager:
Johannesburg
History of Business
Indy Oil SA (Pty) Ltd was started in September 1999 utilising a shelf entity named Fullimput 226
(Pty) Ltd for registration purposes and the name changed to Indy Oil SA (Pty) Ltd.
Nature of Business
Indy Oil SA (Pty) Ltd is involved in the manufacture of automotive oils and industrial lubricants, as
well as chemical cleaners and organic oils which are distributed in the Eastern and Western Cape as
well as Gauteng and KwaZulu-Natal.
Manufacture of Petrol and Lubricants Page 41 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Nr. of Employees 57
Banks First National Bank (a division of FirstRand Bank Ltd)
Auditors RA Frith
Brandnames
Indy Oil
Trademarks
Indy Oil
Manufacture of Petrol and Lubricants Page 42 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
KZN OILS (PTY) LTD
Reg. Number: 2001/021458/07
VAT Number: 4470205917 Updated: 2012-02-06
Postal Address: Physical Address:
PO Box 74134, Rochdale Park
4034
397 North Coast Road, Briardene
4051
Tel: +27 31 570 0550 Fax.: +27 31 570 0522
Email: info@kznoils.co.za Website: www.kznoils.co.za
Branches
Branch Area Head Tel
KZN Oils - Brakpan Gauteng +27 11 8131502
KZN Oils - Briardene Warehouse KwaZulu-Natal +27 31 5700533
Shareholders
Shareholder Percentage
Mr R Reddy 74.00
Phaphama 26.00
Management
Name Position Email Appointed
Mr Jack (Sundro) Moodley Financial Manager smoodley@kznoils.co.za
Mr Shaun Naidoo National Sales Manager
Ms Viveena Naidu Human Resources Manager
Mr Suren Padayachee Call Centre Manager
Mr Rajendran (Rajen) Reddy Chief Executive Officer rreddy@kznoils.co.za 2001-09-10
History of Business
KZN Oils (Pty) Ltd was established on the 10 September 2001 when the operations of KZN Oils &
Fuel Distributors cc, which had been in operation since May 1997, were acquired and incorporated
into the company.
Nature of Business
KZN Oils (Pty) Ltd is involved in the wholesale and distribution of industrial, marine and automotive
fuel and oil. The company operates in KwaZulu-Natal and Gauteng.
Nr. of Employees 84
Empowerment
Stake 100%
Banks Standard Bank of South Africa Ltd
Manufacture of Petrol and Lubricants Page 43 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Auditors Deloitte & Touche
Brandnames
KZN Oils
Subsidiaries, Associates & Investments
Name Percentage
KZN Bunkers (Pty) Ltd 100.00
Manufacture of Petrol and Lubricants Page 44 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
LUBRITENE (PTY) LTD
Reg. Number: 1996/001997/07
VAT Number: 4590155802 Updated: 2012-02-17
Postal Address: Physical Address:
Private bag X97, Halfway House
1685
Gleneagles, Fairway Office Park
52 Grosvenor Road, Bryanston, 2021
Tel: +27 11 976 2944 Fax.: +27 11 393 1707
Email: tiaan@lubritene.co.za Website: www.lubritene.co.za
Branches
Branch Area Head Tel
Lubritene Zambia +09 2602 311032
Lubritene Ghana
Lubritene Botswana +26 7 312 1606
Lubritene Kwazulu-Natal +27 72 385 6780
Lubritene Mpumalanga +27 13 692 8577
Lubritene Northern Cape +27 53 712 1673
Lubritene Western Cape +27 27 718 1072
Management
Name Position Email Appointed
Mr R Burns Engineer 1999-03-01
Mr D Cutter Engineer 1999-03-01
Mr CMPD Dalle Carbonare Operations Director 1996-06-04
Mr Christiaan (Tiaan) Oosthuizen Sales Director 2006-09-01
Mr Pierre Van der Riet Director 2010-11-01
History of Business
Lubritene (Pty) Ltd was established on 20 February 1996 when a division of Chemrite Southern
Africa (Pty) Ltd known as the Chemrite Lubricants Division was acquired and incorporated into the
new legal entity. A shelf company named Henbase 3106 (Pty) Ltd was utilised for registration
purposes and the name was changed to Lubritene (Pty) Ltd.
Nature of Business
Lubritene (Pty) Ltd specialises in the manufacture of high performance greases, compounds and
oils. The company focuses on the development, manufacture and distribution of a wide variety of
grease types, such as aluminium complex, lithium, lithium complex, clay base and other types and
mixes.
Manufacture of Petrol and Lubricants Page 45 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Banks First National Bank (a division of FirstRand Bank Ltd)
Auditors Colin Smith and Company
Manufacture of Petrol and Lubricants Page 46 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
NATIONAL PETROLEUM REFINERS OF SOUTH AFRICA (PTY) LTD
Trading As: NATREF
Reg. Number: 1967/012994/07
VAT Number: 4340117193
BEE Rating: Not Finalised Updated: 2012-01-30
Postal Address: Physical Address:
PO Box 234, Sasolburg
1947
Admin Building, Block B, Jan Haak Road
Industrial Sites, Sasolburg, 1947
Tel: +27 16 940 9111 Fax.: +27 16 940 2503
Email: Website: www.sasol.com
Shareholders
Shareholder Percentage
Sasol Oil (Pty) Ltd (Held by Sasol Ltd - 75%) 63.64
TOTAL South Africa (Pty) Ltd 36.36
Management
Name Position Email Appointed
Mr Line Bobillo Director 2010-11-05
Mr Jabulani Cele Operations Manager
Mr Abraham (Bram) de Klerk Director
Mr C Dupre Director 2010-01-01
Mr Louis Fourie Managing Director 2010-01-05
Ms Nazima Ismail Employment Equity Manager
Mr Jacob Malgas Human Resources Manager
Mr Pierre Noailly Manufacturing Director
Mr Maurice Radebe Director 2007-01-01
Mr Gert Rostoll Engineering Manager
Mr Jean-Denis Royere Director
Mr Giullean (Lean) Strauss Director
Mr Jacobus van Wyk Director
Ms Carine van Zyl Financial Manager
Mr Wilhelm Wasserman Operations Manager
History of Business
National Petroleum Refiners of South Africa (Pty) Ltd t/a Natref was established in December 1967.
Manufacture of Petrol and Lubricants Page 47 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Nature of Business
National Petroleum Refiners of South Africa (Pty) Ltd t/a Natref undertakes the refining of crude oil,
on behalf of its shareholders, for a processing fee. It is equipped with sophisticated conversion
units which transform crude oil to petrol, jet fuel and diesel. Crude oil is transported to Sasolburg
by means of a pipeline which runs from Durban. The refinery produces approximately 108 500
barrels of fuel per day.
Nr. of Employees 573
Secretary Sasol Group Services (Pty) Ltd
Banks ABSA Bank Ltd
Auditors KPMG Inc
Production Capacity
108 500 barrels of fuel per day
Subsidiaries, Associates & Investments
Name Percentage
Nexsum Leasing (Pty) Ltd 100.00
Twente Woonstelle (Pty) Ltd 100.00
Manufacture of Petrol and Lubricants Page 48 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
PETROLEUM MARKETING ORGANIZATION (PTY) LTD
Trading As: PETROMARK
Reg. Number: 1972/004220/07
VAT Number: 4710106222
BEE Rating: Level 7 BEE Professional Assignments Updated: 2012-02-15
Postal Address: Physical Address:
PO Box 713, Edenvale
1610
2 Foreman Road, Spartan Ext 3
Kempton Park, 1619
Tel: +27 11 392 8740 Fax.: +27 86 688 6601
Email: lubes@petromark.co.za Website: www.petromark.co.za
Branches
Branch Area Head Tel
Petromark KwaZulu-Natal KwaZulu-Natal +27 31 701 6677
Petromark North West North West +27 18 462 4551
Petromark Tshwane Gauteng +27 12 653 7976
Shareholders
Shareholder Percentage
The Seahound Trust 56.00
Directors 44.00
Management
Name Position Email Appointed
Ms Tinky Moolman Financial Manager tinky@
petramark.co.za
Mr Alan Taten Robertson Managing Director 2000-09-01
Mrs Carol Angela Robertson Non-Executive Director 2003-10-01
History of Business
Petroleum Marketing Organization (Pty) Ltd t/a Petromark was established in April 1972.
Nature of Business
Petroleum Marketing Organization (Pty) Ltd t/a Petromark manufactures and distributes
compounded and blended lubricating oils, degreasers, hand cleaners and vehicle cleaners. The oils
are mixed with additives. The company supplies the industrial and automotive industries and
markets fuel.
Nr. of Employees 42
Banks Standard Bank of South Africa Ltd
Auditors Johan Zwarts & Associates
Manufacture of Petrol and Lubricants Page 49 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Brokers van Flymen & Associates
Turnover [2011] R60.0m (Est) (As per company)
Brandnames
Anti-Flam Hydro, Anti-Splatter, Aquaclean, AquaTruck Plus, Borate Gear Oil, Calibrating Fluid S,
Complube, Die Paste, Drawing Oil, Ferrotap, Flushing Oil, Guideway Oil, Gun Oil 22, Heat Transfer
Oil, High Speed Spindle Oil, Honing Oil, Hydraulic Oil, Industrail Gear Oil, Inhibited IGO, Inhibited
Mineral Oil, Lapping Oil, Parasolve, Petroforge, Petrogrit, Petromark, Petroquench Oil, Petrosol,
Petrosyn, PetroTech, Petrozorb, Powerlube, Process Oil, Protector Coat, Rockdrill Oil, Schrader Cut,
Solclean Red, Soluble Grinding Fluid, Spark Erosion Fluid, Straight Mineral Gear Oil, Super
Outboard Oil, Super Two Stroke, Superlube, Syntol, Thermo Clean, Threadcut, Tractor
Tranmission, Transfluid, Unisol, White PJ
Trademarks
Complube, Petromark, Powerlube
Manufacture of Petrol and Lubricants Page 50 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
PETROLEUM OIL & GAS CORPORATION OF SOUTH AFRICA (PTY) LTD,
THE
Trading As: PETROSA
Reg. Number: 1970/008130/07
VAT Number: 4320103502
BEE Rating: Level 2 Empowerdex Updated: 2012-02-21
Postal Address: Physical Address:
Private Bag X5, Parow
7499
151 Frans Conradie Drive, Parow
Cape Town, 7500
Tel: +27 21 929 3000 Fax.: +27 21 929 3144
Email: petrosa@petrosa.co.za Website: www.petrosa.co.za
Branches
Branch Area Head Tel
PetroSA Europe BV Rotterdam Netherlands Mr Sastri Gounden +27 31(0) 10 400 7353
Shareholders
Shareholder Percentage
Department of Minerals & Energy via CEF (Pty) Ltd 100.00
Management
Name Position Email Appointed
Mr Mputumi Damane Non- Executive Director
Ms Nonhlanhla Jiyane Non- Executive Director 2011-03-01
Mr Mohamed Kajee Chairman & Non-Executive
Director 2007-07-01
Ms Esther Latelape Non- Executive Director 2011-03-01
Ms Linda Makatini Non- Executive Director 2010-01-01
Mr Zingisa Mavuso Alternate Non-Executive
Director 2009-04-09
Ms Nondumiso Medupe Non- Executive Director 2010-01-01
Dr Benny Mokaba Non- Executive Director 2011-03-01
Mr Andrew (Connie) Molusi Non- Executive Director 2011-03-01
Mr Nkosemntu Gladman
Nika Chief Financial Officer 2003-02-09
Ms Nosizwe Nokwe President & CEO
Dr Zavareh Rustomjee Non- Executive Director 2009-02-09
Mr Yekani Tenza Non-Executive Director 1999-01-12
Manufacture of Petrol and Lubricants Page 51 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Mr Hilton Trollip Non- Executive Director
Mr Dalikhaya (Rain) Zihlangu Non-Executive Director 2006-01-12
Mr Musa Zwane Non- Executive Director 2011-03-01
History of Business
The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd t/a PetroSA is South Africa’s
national oil company. It was formed in January 2002 from the merger of three previous entities,
Mossgas (Pty) Ltd, Soekor E&P (Pty) Ltd and parts of the Strategic Fuel Fund Association.
Nature of Business
The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd t/a PetroSA are involved in the
exploration and production of oil and gas, and the production and marketing of synthetic fuels and
petrochemicals. The refinery produces approximately 45 000 barrels of fuel per day.
Major clients include Caltex, Engen, Sasol,Shell, International Tullow, Chinese national oil
companies.
Nr. of Employees 1 836
Empowerment
Stake 100%
Secretary Adv Sindiso Ngaba
Banks Standard Bank of South Africa Ltd
Auditors Auditor-General of South Africa
Turnover [2011] R10,565.0m (AR2011)
Estimated Profit R405.4m (Operating)
Corporate Governance in Relation to AIDS Policy
PetroSA has an HIV/AIDS policy which offers employees voluntary testing and counselling annually.
The policy has been fully embraced company-wide, there is no effect evident on the bottom-line.
The policy was established in 2003.
Influencing Factors
Sufficient feedstock reserves (oil or gas), therefore re-investment towards reserves addition
necessary. Cleaner PetroSA products a competitive advantage. PetroSA’s GTL refinery produces
world standard ultra-clean, low sulphur, low aromatic synthetic fuels and high value products
converted from natural methane-rich gas and condensate using a unique GTL Fischer Tropsch
Technology. Oil price and rand/dollar exchange rates in the case of South Africa.
Competition and Barriers
Very competitive industry characterised by high capital requirements and high risk exploration with
huge uncertainties. The company’s biggest internal challenge is the continued reliance on a single
source of income, namely the GTL re!nery.
Manufacture of Petrol and Lubricants Page 52 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Prevailing Conditions in the Industry
Volatile commodity prices as well as exchange rates. Increased resource nationalisation. Low
margins especially downstream.
Production Capacity
45 000 barrels of fuel per day
Subsidiaries, Associates & Investments
Name Percentage
Brass Exploration Unlimited (Nigeria) 100.00
GTL.F1 AG (Switzerland) 37.00
Petroleum Oil & Gas Corporation of South Africa (Namibia) (Pty) Ltd 100.00
PetroSA Brass (Pty) Ltd 100.00
PetroSA Egypt (Pty) Ltd 100.00
PetroSA Equatorial Guinea (Pty) Ltd 100.00
PetroSA Europe BV 100.00
PetroSA Gryphon Marin Permit (Pty) Ltd 100.00
PetroSA Iris (Pty) Ltd 100.00
PetroSA Nigeria Ltd 100.00
PetroSA North America 100.00
PetroSA Sudan (Pty) Ltd 100.00
PetroSA Synfuel International (Pty) Ltd 100.00
PetroSA Themis (Pty) Ltd 100.00
Sud-Chemie Zeolites (Pty) Ltd 37.00
Manufacture of Petrol and Lubricants Page 53 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
PISTON POWER CHEMICALS CC
Reg. Number: 1998/050507/23
VAT Number: 4950177719
BEE Rating: Level 1 Updated: 2012-02-17
Postal Address: Physical Address:
PO Box 90, Desainagar
4405
316 Balfour Road, Jacobs
4052
Tel: +27 31 468 6825 Fax.: +27 31 468 6826
Email:
dbnsales@pistonpower.co.za;
jhbsales@pistonpower.co.za;
ctsales@pistonpower.co.za
Website: www.pistonpower.co.za
Branches
Branch Area Head Tel
Piston Power Chemicals Johannesburg +27 11 3971225
Piston Power Chemicals Cape Town +27 21 5518939
Shareholders
Shareholder Percentage
Members 100.00
Management
Name Position Email Appointed
Mr Krish Andhee Director 2007-11-07
Mr U Andhee Director 1988-08-31
Mr Ray Maharaj Director 1998-08-31
History of Business
Piston Power Chemicals cc was established in 1998.
Nature of Business
Piston Power Chemicals cc manufactures lubricants for the automotive, agricultural and industrial
industries.
Nr. of Employees 18
Empowerment
Stake 100%
Banks Nedbank Ltd (a division of the Nedbank Group Ltd)
Auditors Nerisha Ishwarlal Chablal
Manufacture of Petrol and Lubricants Page 54 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Production Capacity
Blending capacity of 25-50 tons per day.
Brandnames
Agri Power Super, Agri Power Universal, Chain Power, Piston Power, Super 2T
Manufacture of Petrol and Lubricants Page 55 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
SASOL WAX (DIVISION OF SASOL CHEMICAL INDUSTRIES LTD)
Reg. Number: 1968/013914/06
VAT Number: 4360224200
BEE Rating: Level 4 Empowerdex Updated: 2012-02-09
Postal Address: Physical Address:
PO Box 1, Sasolburg
1947
Carl Bosch Road, Chem City 2
Sasolburg, 1947
Tel: +27 16 960 2342 Fax.: +27 16 960 2310
Email: sasolwax@sasol.com Website: www.sasolwax.com
Branches
Branch Area Head Tel
Sasol Wax - Durban Manufacturing Plant KwaZulu-Natal
Sasol Wax - Sasolburg Manufacturing Plant Free State
Shareholders
Shareholder Percentage
Sasol Ltd (Held by Government Employees Pension Fund - 13.3%; Industrial
Development Corporation of South Africa Ltd - 7.9%) 100.00
Management
Name Position Email Appointed
Mr Jacobus Francois Conradie Director 2007-11-07
Mr André Marinus de Ruyter Executive Chairman 2010-02-04
Mr Johan du Preez Divisional Managing
Director
Ms Michelle du Toit Director 2007-11-13
Ms Gerda Freitag Financial Manager:
Accounting gerda.freitag@sasol.com
Mr Nicolas (Nico) Jacobus
Janse van Rensburg Financial Manager
nico.jansevanrensburg@
sasol.com 2009-05-27
Ms Kandimathie Christine
Ramon Director 2009-07-13
Ms Carine van den Berg Director 2007-11-13
History of Business
Sasol Wax originally began trading in September 1963 and was divisionalised under Sasol
Chemiese Nywerhede Bpk in January 2006.
Manufacture of Petrol and Lubricants Page 56 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Nature of Business
Sasol Wax is involved in the manufacture of wax and paraffin, which is retailed to local candle
manufacturers and also exports wax to overseas clients who manufacture inks, adhesives and
paraffin.
Nr. of Employees 500
Secretary Mr Nico Janse van Rensburg
Banks ABSA Bank Ltd
Auditors KPMG Inc
Turnover [2011] R2.5m (Est) (As per company)
Influencing Factors
The exchange rate as there is a lot of international trade.
Brandnames
AdSperse, EnHance, eWax, HydroWax, Merkur, Sasobit, Sasolwax, Sasolwax BituGlide, Vara
Manufacture of Petrol and Lubricants Page 57 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
SHELL & BP SOUTH AFRICAN PETROLEUM REFINERIES (PTY) LTD
Trading As: SAPREF
Reg. Number: 1960/000007/07
VAT Number: 4580102442
BEE Rating: Level 3 Empowerdex Updated: 2012-02-17
Postal Address: Physical Address:
PO Box 3179, Durban
4000
Refinery Road, Prospecton
4110
Tel: +27 31 480 1911 Fax.: +27 31 468 1913
Email: public@sapref.com Website: www.sapref.com
Shareholders
Shareholder Percentage
BP Southern Africa (Pty) Ltd (Held by BP Plc - 75%; Mineworkers Investment
Company (Pty) Ltd - 17.5%; Womens Development Bank - 7.5%) 50.00
Shell South Africa Holdings (Pty) Ltd 50.00
Management
Name Position Email Appointed
Mr Mike Baker Director
Ms Bridget Bishenden Legal Services Manager
Mr Gerard Derbesy Director
Mr Romanus Dindi ICT Manager
Mr Moosa Karodia Technical Manager
Ms Lindiwe Khuzwayo Sustainable Development Manager
Mr Ncazane Mabena Director
Mr Julius Maile Chief Internal Auditor
Mr Andrew Mckay Acting Human Resources Manager
Mr Albert Mobaso Maintenance Manager
Mr Bonang Francis Mohale Non-Executive Director 2009-11-03
Mr Robin Mooldijk Manageing Director
Mr Pravin Motilal Lead Engineer Projects /
Development
Mr Colin Muthusami Financial Manager and Company
Secretary
Mr Abhay Raichoora Director
Ms Lori Ryerkerk Director
Manufacture of Petrol and Lubricants Page 58 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Ms Donna Tarka Director
Mr Garry Tate Maintenance Manager
Mr John van Belkum HSE Manager
Mr Rodney Youldon Hydrocarbons Manager
History of Business
South African Petroleum Refineries (Pty) Ltd was established in January 1960 and underwent a
name change to Shell & BP South African Petroleum Refineries (Pty) Ltd in May 1962. In 1963, a
joint venture between Shell and BP, known as SAPREF, commissioned a refinery in Durban. By
1966, Caltex had commissioned a refinery in Cape Town. In 1967, Shell and BP, in partnership with
Federale Volksbeleggings, built the first base-oil refinery, which was adjacent to the SAPREF plant.
Nature of Business
Shell & BP South African Petroleum Refineries (Pty) Ltd t/a SAPREF is the largest complex oil
refinery in South Africa and produces leaded and unleaded fuels, low sulphur diesel, lubricants,
asphalt product slate, aliphatic hydrocarbon solvents and industrial processing oils and sulphur.
The company produces approximately 180 000 barrels of fuel per day. Oil, brought from countries
in the Middle East, Europe and Africa, is discharged by tankers at a single buoy mooring (SBM),
about 2.5 kilometres off the coast near Prospecton and enters SAPREF through an underground
pipeline. The oil is stored in tanks, from where it is fed into the refinery.
Nr. of Employees 750
Empowerment
Stake 25%
Banks Standard Bank of South Africa Ltd
Auditors PricewaterhouseCoopers Inc
Production Capacity
180 000 barrels of fuel per day
Brandnames
BP, Shell
Market Share
35% (Refining capacity)
General Comment
A project currently being implemented at SAPREF is the replacement project of 7 product pipelines.
A detailed annual maintenance programme is aimed at upholding international safety standards
and requires that sections of the plant are shut down from time to time for inspection. This
programme also oversees any repairs and improvements that need to be carried out. Regular
maintenance is not only a legal requirement, but is also stipulated by the shareholders Shell and
BP, who inspect and audit practices and standards.
Manufacture of Petrol and Lubricants Page 59 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
SPANJAARD LTD
Reg. Number: 1960/004393/06
JSE Code: SPA
VAT Number: 4350106318
BEE Rating: Level 7 BEE Verification Agency Updated: 2012-02-03
Postal Address: Physical Address:
PO Box 7294, Johannesburg
2000
748-750 Fifth Street, Wynberg
2090
Tel: +27 11 386 7100 Fax.: +27 11 786 5685
Email: sales@spanjaard.biz;
info@spanjaard.biz Website: www.spanjaard.biz
Divisions
Division Area Head Tel
Metal Powders Gauteng +27 11 386 7100
Special Lubricants and Allied Chemicals Gauteng +27 11 386 7100
Shareholders
Shareholder Percentage
Spanjaard Group Ltd 55.30
Ms E Nepgen 8.70
Mr RJW Spanjaard 8.40
Management
Name Position Email Appointed
Ms Judy Born Consumer Sales Manager SA
Mr Graham Frank Cort Executive Director 2006-02-06
Mr Clayton Greer Industrial Sales Manager SA 2010-06-01
Ms Shaila Hari Independent Non-Executive
Director 2011-11-01
Mr Bernard Law Montgomery Independent Non-Executive
Director 2005-11-23
Ms Elista Nepgen Executive Managing Director 2010-07-23
Mr Clinton Keith Tew Palmer Executive Director 2008-10-07
Mr Stephen Albert Pretorius Executive Director: Manufacturing 2011-01-07
Mr Robert Johannes Willem
Spanjaard Executive Chairman 1960-12-02
Manufacture of Petrol and Lubricants Page 60 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Dr Daniel Petrus
van der Nest
Lead Independent Non-Executive
Director 2006-11-01
Mr Hendrik Jacobus
van Heerden Executive Financial Director 2010-07-23
History of Business
RJW Spanjaard and Company Ltd was registered in December 1960. The company underwent a
name change to Molyslip Ltd and in October 1987, the name changed to Spanjaard Ltd. On 1
January 1987, the company listed on the JSE.
Nature of Business
Spanjaard Ltd operates as a manufacturer and distributor of specialised lubricants and allied
chemical products for the industrial, automotive, marine and mining markets. Contract packaging
of the company's range of lubricants is done for private labels. The company also specialises in
aerosol food and aerosol cosmetic products. Metal powder products are also manufactured through
two of its subsidiaries.
Nr. of Employees 107
Secretary Mrs Margaret Bond
Banks Standard Bank of South Africa Ltd
Auditors Mazars
Attorneys Bowman Gilfillan
Brokers Imara S.P. Reid (Pty) Ltd
Turnover [2011] R102.1m (AR2011)
Estimated Profit R4.8m (Net)
Transfer Secretaries
Name Physical Address Postal Address Tel
Computershare Investor Services
(Pty) Ltd
70 Marshall Street,
Johannesburg, 2001
PO Box 61051,
Marshalltown
Brandnames
Coppermet, Molyslip, Spanjaard
Trademarks
Molyslip, Spanjaard
Distribution Rights
Molyslip, Spanjaard
Manufacture of Petrol and Lubricants Page 61 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Subsidiaries, Associates & Investments
Name Percentage
Bronzmet (Pty) Ltd 100.00
Coppermet (Pty) Ltd 100.00
Molyslip Zimbabwe (Pvt) Ltd 100.00
Slip Products (South Africa) (Pty) Ltd 100.00
Spanjaard EU BV (Incorporated in The Netherlands) 100.00
Spanjaard Manufacturing (Pty) Ltd (Incorporated in Australia) 100.00
Spanjaard UK Ltd (Incorporated in the United Kingdom) 100.00
Torpedo Investments (Pty) Ltd 100.00
Manufacture of Petrol and Lubricants Page 62 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
TOTAL SOUTH AFRICA (PTY) LTD
Reg. Number: 1954/003325/07
VAT Number: 4960103580 Updated: 2012-02-17
Postal Address: Physical Address:
PO Box 579, Saxonwold
2196
Total House, 3 Biermann Avenue
Rosebank, 2146
Tel: +27 11 778 2000 Fax.: +27 11 778 2001
Email: Website: www.total.co.za
Shareholders
Shareholder Percentage
Total Overseas Holding (Pty) Ltd 50.10
Main Street 87 (Pty) Ltd 25.00
Industrial Partnership Investments Ltd 24.90
Management
Name Position Email Appointed
Mr Line Bobillo Director 2008-09-18
Mr Alain Georges Jean
Champeayx Business Executive 2002-03-08
Mr Leon Crouse Director 2008-09-18
Mr Edwin de la Harpe Hertzog Director 1990-06-01
Mr Olivier Alain Devouassoux Director 2008-03-26
Ms Gugu Yvonne Yolande
Ditodi Director 2008-12-01
Mr Mkhuseli (Richman) Faku Director 2003-05-23
Ms Zodwa Manase Director 2006-09-28
Mr Authur Bhuti Mashaitshidi Director 2009-03-24
Ms Emily Patience Mekwa Director 2009-09-23
Mr Jean-Denis Royere Director 2007-12-07
Mr Neville John Williams Director 2011-04-01
History of Business
Total South Africa (Pty) Ltd was established in December 1954. In October 2000, the holding
company in France amalgamated with Fina Lubricants and Elf Oils and underwent a name change
to Totalfinaelf, however, reverted to Total Overseas Holding (Pty) Ltd in June 2003.
Manufacture of Petrol and Lubricants Page 63 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
Nature of Business
Total South Africa (Pty) Ltd is involved in the manufacture, marketing and distribution of petroleum
products as well as the manufacture and distribution of lubricating oils and grease under the brand
name Total.
Nr. of Employees 800
Banks ABSA Bank Ltd
Auditors Ernst & Young Inc
Corporate Governance in Relation to AIDS Policy
Total commits itself to the following:
♦ HIV positive employees will be governed by the same contractual obligations as all other
employees;
♦ HIV/AIDS education and awareness training will be made available to all employees;
♦ Pre and post-test counselling services will be provided for employees wishing to be tested or
for those who are infected with the virus;
♦ TOTAL will ensure that where necessary/appropriate, affected employees and their colleagues
and or line managers receive appropriate advice and guidance should such a colleague wish to
disclose their status;
♦ The company will also ensure that affected employees are referred to appropriate professionals
for medical and or counselling services and
♦ Consultation with affected employees in managing their illness will also be ensured.
Competition and Barriers
Clients are service stations and commercial and agricultural industries.
Manufacture of Petrol and Lubricants Page 64 of 66 Siccode 332 & 63500
© Copyright Who Owns Whom (Pty) Ltd
VALVOLINE SOUTH AFRICA (PTY) LTD
Reg. Number: 1995/008199/07
VAT Number: 4270153077
BEE Rating: Not Rated Updated: 2012-02-03
Postal Address: Physical Address:
PO Box 314, Bruma
2026
First Floor-Lakeside 2, Ernest Oppenheimer
Avenue, Bruma, 2198
Tel: +27 11 616 2200 Fax.: +27 11 616 4982
Email: Website: www.valvolineeurope.com
Shareholders
Shareholder Percentage
Ashland Inc 100.00
Management
Name Position Email Appointed
Mr Patrick George Thomas
Bergman Managing Director
pgtbergman@
ashland.com
Mr Craig Moughler Non-Executive Director
History of Business
Valvoline South Africa (Pty) Ltd was registered in 1995.
Nature of Business
Valvoline South Africa (Pty) Ltd is a manufacturer of high performance automotive, commercial and
industrial lubricants and aftercare products.
Nr. of Employees 15
Banks Citibank N.A.
Auditors Ernst & Young Inc
Brandnames
Dura-Blend, Max Life, Syn Power, Valvoline
Trademarks
Dura-Blend, Max Life, Syn Power, Valvoline
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