bpSA business overview
bp has operated in Africa for over 100 years, pursuing a range of interests from oil and gas exploration, crude oil importation and refining to the distribution and marketing of gas and refined products through bp Ultimate, Aviation, bp Marine and Castrol. The head office for bp Southern Africa (bpSA) s based in Rosebank, Johannesburg.
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bpSA has over 500 branded service stations across South Africa (SA) and a 50% share in one of the largest refineries in Africa, SAPREF, situated in Durban. SAPREF was commissioned in 1967 as a joint venture between bp and Shell and has a 180,000 barrels per day nameplate capacity.
SAPREF also manages the Single Buoy Mooring (SBM) on behalf of the SA petroleum industry. Around 80 to 85% of SA crude oil imports come through the SBM, which is a national key point.
bpSA has six fuel storage terminals, two 100% owned by bpSA, two (Alrode and Pretoria) jointly owned with Sasol (50/50), one (Island View) jointly owned with Shell (50/50) and one (Rustenburg) owned by Astron (⅓), bpSA (⅓) and Engen (⅓). We invest in our terminal infrastructure to provide world class road and rail gantries, fire-fighting capability, tanks and pipelines.
1.2 Award winning fuels and lubricants
The award-winning bp Ultimate with Active Technology is bpSA’s flagship fuel product. Its engine performance enhancing properties have earned it several prestigious accolades including South African Product of the Year Award and the Ask Afrika Kasi Star Brands survey.
bp’s lubricant brand, Castrol is the world’s leading manufacturer and distributor of premium lubricating oils and related services to automotive and industrial customers across SA. Castrol works with leading industry car manufacturers, supplying a broad range of lubricants designed for particular operating conditions and environments.
1.3 Fuel Quality Assurance & Innovation
bpSA’s cutting-edge Advanced Technology Products Centre in Kyalami, Johannesburg (one of only four in the world belonging to bp and the first in Africa) further boosts the company’s ability to provide quality differentiated fuels in the SA market. The Technology Centre laboratory is ISO 17025 accredited, with over 40 years of experience amongst the team of 12 people.
1.4 Award winning Convenience Offers
In addition to its over 500 retail stations, which include company owned, company leased, and dealer owned sites, bpSA provides a unique convenience offering through bp Express, PnP Express and Wild Bean Café.
1.5 Loyalty and Partnerships
Our strategic partnerships with leading brands including Pick n Pay, Nedbank, Uber, Mr Delivery (Mr D), Vodacom, Discovery Insure have enhanced our customer value proposition, increasing foot traffic to our service stations. Through these shared value partnerships, customers enjoy benefits in the form of loyalty points and rewards.
1.1 bp Aviation
The Aviation division of bpSA is one of the leading suppliers of Aviation fuel products and services. bp Aviation’s strength and technology have been proven in managing some of the largest into-plane fueling services at the OR Tambo International Airport (ORTIA) in Johannesburg and Cape Town International Airport (CTIA). bpSA Aviation has received the Feather Awards at CTIA and George Airport, which are bestowed by Airports Company SA (ACSA) annually for excellent performance and good safety record at its airports.
1.2 bp Marine
bp Marine’s SA operations use two barge (small in-port tankers taking fuels from shore tank and deliver to a customer ship) operating companies in Durban, which are both BEE (Black Economic Empowerment) Level 2 companies with Women and Youth among shareholders. These deliver about 35 kilotons per month (ktpm) of bp fuels between them. In Richards Bay, bp uses two barges which are both operated by a single BEE Level 2 company and these deliver about 20 ktpm of bp fuel. bp Marine also delivers Marine diesel by trucks in the ports of Durban and Cape Town through BEE Level 2 entities for such road freighting, delivering 3 ktpm of marine fuels.
2 bpSA Economic Contribution
2.1 Investment in SA
As safety is our top priority with investments in systems and infrastructure to ensure safe, reliable and compliant operations.
Furthermore, our investment plan creates employment opportunities and drives economic growth in the country. It is also important to note that the investment plan is aligned with bpSA’s objectives of sustainable skills development and meaningful broad-based economic transformation. In addition, bpSA contributes significantly through direct and indirect taxes to the South African Revenue Services (SARS).
We are committed to clean fuels and we have made investments in SAPREF to locally produce 50 ppm Diesel (D50) as well as Very Low Sulphur Fuel Oil (VLSFO).
2.2 Corporate Social Investment (CSI)
bp is committed to investing in the communities where we operate and believe in these communities meaningfully. This has led to a firm understanding of local needs to support the sustainability of local communities. The overall aim is to achieve sustainable socio-economic development for all beneficiaries with the belief that this will positively impact the business itself.
2.3 COVID-19 Support
During 2020, bpSA supported several COVID-19 initiatives, including:
3 bpSA Employment Equity
bpSA employs about 1,000 people from diverse racial and cultural backgrounds in its offices and depots.
bpSA’s staff is comprised of 45% Women and 55% Male, 64% are African, 19% Coloured, 9% White and 8% Indian. At executive level 72% are Black and 27% White with strong female representation at 45%.
The appointment of Ms Taelo Mojapelo as bpSA CEO in June 2020 underscores bp’s commitment to diversity and inclusion. Taelo is the second African woman in the history of SA’s oil and gas industry to head a multi-national company and takes over from Ms Priscillah Mabelane, who was the industry first in 2017, moving to Sasol in September 2020.
4 Transformation and Empowerment
bpSA believes meaningful and sustainable transformation. Its transformation journey has focused on four key areas:
bpSA is 25% + 1 Black Owned where bp plc owns 75% - 1 share, Kapela owns 20%+1 share and bpSA Energy Mobility Education Trust 5%.
bpSA has achieved BEE Level 2 since the promulgation of the B-BBEE (Broad-Based Black Economic Empowerment) Codes of Good Practice in 2015 for four consecutive years (2015 to 2018) and achieved level 3 in 2019.
5 Sustainability in bpSA
Safety is bpSA’s top priority on every job, every day. bpSA focusses on keeping employees and contractors safe and alert to potential hazards in their work. Our values determine how it works and no value is more important than safety. We track our safety performance using industry metrics and work to continuously improve personal and process safety across the bp Group.
On environment, our goal is to understand and sustain the health of the environments in which we operate and respect the resource needs of communities which depend on them. At local level, we conduct detailed environmental and social assessments when planning our projects to identify impacts that could arise from our activities. We then take measures to address them.
We are committed to conducting our business in an ethical, transparent way, in line with our values and Code of Conduct. We expect our employees to treat other with respect, fairness and dignity. Our Code of Conduct sets clear expectations for how we work at bp. It applies to all employees and members of the board. We also expect our contractors and their employees to act in a way that is consistent with our code. If those expectations are not met, we take appropriate action.