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