Post on 31-Jan-2016
description
REVIEW OF PETROLEUM AND LIQUID FUELS CHARTER 2 November 2000 – August 2010
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Agenda
Introductions
Supportive Culture
Ownership and Control Employment Equity
Capacity Building
Procurement
Enterprise Development Socio-Economic Development (CSI)
Conclusion
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Sipho Maseko Chief Executive – BP
Richard Fienberg Chief Financial Officer – BP
Vuyi Raseroka Human Resources Director – BP
Joe Mahlo Head of External Affairs and Communications – BP
Tshidi Madima Executive Director Investments - Mineworkers Investment Company
Sizwe Mncwango Managing Director - Masana Petroleum Corporation
Who is in attendance from BP?
Introductions
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Black people well represented on the board at 48.75%
Black executive directors amount to 20%
Black top management amounts to 50%
Board Transformation Committee
All statistics using the adjusted recognition for gender
We started our transformation journey by cultivating a Supportive Culture
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25% voting rights in hands of black people
Oversight and challenge
Transformation committee
Exposure across the entire value chain
Sells BP and Castrol branded products
BPSA will not compete with Masana and remains an equity partner at all times
Masana majority BEE owned & operated
Regular cash flow with guaranteed minimum returns & upside linked to BPSA performance & MIC/WDB participation
How is MIC/WDB’s equity investment and joint venture in BPSA structured?
Manufacturing
(Refining), Supply, Trading
Commercial &Industrial
LubesRetail
BPSA (Pty) LtdBP75%
MIC17.5%
WDB7.5%
SAPREF &Blendcor
50%
BP45%
MIC24.5%
WDB10.5%
MasanaMgt & Staff
20%
Masana Petroleum Solutions
BEE partnership meets the intent and spirit of the Charter
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Employment Equity & Capacity BuildingAfricans in leadership positions increased from 23% to 51% and females from 8% to 18%
Most senior positions in BP South Africa
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Employment Equity & Capacity Building:A transformed racial profile
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Employment Equity & Capacity BuildingAmbitious plans to redress gender imbalance
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Procurement: our interventions are bearing fruitProcurement from BEE compliant businesses increased by a compound 33%
Steps Taken In Support of BEE Procurement
• Transformation Committee
set up headed by BEE
Partners – 2001
• Supplier Diversity Manager
role created – 2001
• BEE Procurement Policy
formulated – 2002
• BEE Procurement targets set
for each area of business –
2003
• Appointed Bogosi Consulting
to assist suppliers become
BEE compliant and to rate
them – 2005
• BEE database shared with
SASDA
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Enterprise Development:Role of BP SA in sustainability of Masana
• Funding structure of Masana – R265m• Shareholders loans – BP SA support at R37m; BEE partners at R30m• Raising of RMB loans plus guarantees of approximately R200m
• Product Supply to Masana• BP SA supply product at a discount which is worth approximately R20m/annum• Credit terms of 30D from statement translate to working capital of up to ~R1bn
• Logistics infrastructure and secondary transport• Storage and handling at cost to Masana; access to entire BP SA depot network • Secondary transport – BP fleet delivers to Masana customers nationally• All of Masana’s on-road transport customers have unlimited access to the BP SA retail
network
• Access to both Local and Global expertise• HSSE programmes; Technology (Fuels & Transaction); Strategic Co-operation
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Socio- Economic Development
Over 1.5% net income spent on various community upliftment initiatives
Objective:
Monetary and non-monetary contributions with the specific objective
of facilitating sustainable
access to the economy:
CSI Strategy
Main focus is education on the following themes:
Business leadership & technical development skills
• e.g. Maths, Science & Technology Program in collaboration with
Wits
HIV/AIDS prevention (e.g. Soul City) Road Safety (e.g. Arrive Alive and High School Debating Competition) Environment & Energy (Sea birds rehabilitation through SANCCOB)
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In summary: BP made significant progress…but there remains more to do
• The BP leadership owns the transformation agenda
• The BP BEE partnership with MIC/WDB benefits a broad base
of stakeholders
• The racial profile of the employee population now better
approximates the communities in which we operate
• Our procurement interventions are yielding positive
results
• We have successful Enterprise Development initiatives
• And we continue to invest in Socio-Economic development
initiatives
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Review of Petroleum and liquid fuels Charter
Thank You