Skills Development in the Petroleum Industry
The South African Petroleum Industry Association
11 September 2012
Outline
1. Introduction
2. Overview of the hydrocarbon sector (focusing on petroleum industry)
3. Own training and development programmes
4. Conclusion
2
Introduction
1. People business based on know-how– diversity of talent– complex activity set– operational excellence
2. Transition period – new generation– high investment– talent pipeline lagging
3. Need to respond collectively– Industry, Government, Universities
3
Overview of the petroleum industry
Consumer
RefineryTank farm
Rail
Refineries
StorageDepots
Retail stations
Road tanker
Pipeline
DJP&NMPP
TransnetStorage
Commercial customersRetail station tank
SBMCrude Oil import
Roadtanker
Product importStorage
4
Overview of the petroleum industry
5
The SA petroleum industry accounts for:
•6.48% contribution to the national GDP;
•>100 000 jobs (direct and indirect);
•R217-billion p.a. in turnover;
•R43-billion p.a. in duties and levies;
•R5-billion p.a. in capital expenditure;
•R5-billion p.a. in annual payroll;
•R1-billion p.a. in income tax;
•R340-million on CSI projects in 2011
Scarce skills and critical skills gaps
SAPIA industry review findings:
•Lack of petroleum industry experience;
•Scarcity of suitably qualified and experienced employment equity candidates (specifically black women);
•Need to recruit people with petroleum industry-specific knowledge;
•Need to up-skill existing employees
6
22 54 4 19 8 5 2 4
659633
261
209
48 4224 15
0
100
200
300
400
500
600
700
01
02
03
04
05
06
0
Technicians and trades
workers
Professionals Machinery operators and
drivers
Managers Clerical and administrative
workers
Chieta/DoL to allocate OFO
category
Community and personal
service workers
Sales workers
Pro
jec
ted
de
ma
nd
Sca
rce
skil
ls (
occ
up
atio
ns)
OFO category
Summary of scarce skills and projected demand (2007–2010)
Number of scarce skills (occupations)
Number of projected demand
Technical and professional skills are highest in demand in the petroleum industry
7
Occupationally-directed learning programmes and institutional qualifications programmes with theoretical and practical workplace application is most required to
meet future needs
957
569
438
216 211177
12072
0
200
400
600
800
1000
1200
D -ODL (formal
contract)
B -Institution
theoretical and practical
F -OD instructional programme (not usually formally
assessed)
G -Work-based
programme (not usually assessed)
A -Institution alone
C -Structured workplace
experiential learning
H -International placement
E -ODL (no formal
contract)
Nu
mb
er o
f in
terv
enti
on
s re
qu
ired
Type of learning intervention
Summary of required learning interventions
8
Learning interventions
• Oil, Gas and Chemical Manufacturing Companies Artisan Skills Training Project
- At the end of 2010, 1 215 artisans and process operators qualified and another 106 were completing training for qualification in mid 2011.To date, the company’s contribution to increasing the availability of skilled and qualified artisans and process operators, resulted in a R263-million investment.
- Jointly funded by companies and the Chemical Industries Education and Training Authority (CHIETA).
• Leadership in Oil and Energy Certificate Programme- Successfully implemented from 2006-2011 the Leadership in Oil
and Energy (LOE) Certificate Programme. - 348 industry employees graduated from the programme mostly
black people and women. 9
Learning interventions
• Women in Leadership Programme- Launched in August 2012. Approximately 40 industry women have
enrolled to the programme.- Aimed at talented women in management positions with a proven
track record. This includes middle managers with high potential who need to move to the next level of management (manager of others or manager of managers) and technical specialists.
- Learning opportunity for women who want exposure to the necessary skills and experiences to navigate through an increasing complex and competitive fast changing global landscape within the petroleum industry.
• Advanced Certificate in Management for Oil and Gas- To be launched early 2013- Aimed at Middle Managers making a transition to Senior Managers
and who require specialist knowledge in the oil and Gas Industry.10
Future learning interventions
Explore creation of a Petroleum Institute for South Africa
From Artisan to PHD
Industry learning pathway developed
Leveraging existing FET; University of Technology;
University
Partnership between Industry (SAPIA), Government
(CHIETA, Research Chair) and University (WITS)
11
Conclusion
• Demand for Oil & Gas will keep growing and the SADC region is full of resources.
• The primary limiting factor is the availability of adequate skills
• It is critical to work together to develop a large and focused Oil & Gas talent pool for the region
12
Thank you
13