The motivation behind the establishment of SAPIA
Petroleum is acknowledged as the lifeblood of any modern economy. Supply of liquid fuel of a consistent quality at internationally competitive prices is vital to the economic development of South Africa.
The Association was founded in 1994 to usher South Africa's vital
petroleum industry into a new era. The petroleum industry, in forming the
Association, was deeply aware of the need to make South Africa a competitive
nation, and of the role that the availability and cost of fuel will play in
achieving this target.
Our responsibility to the country
SAPIA exists to foster among its members the desire to be a world-class industry and to encourage co-operation on matters of common concern - but without inhibiting competition.
Until recently, the climate of secrecy in a besieged economy prevented
any industry forum which promoted open consultation and communication. In a
democratic South Africa it is now possible to form an association which can set
goals and standards for the industry and pursue matters of common interest,
just as the petroleum industry has done in other democracies and as many other
industries in South Africa have been able to do. The Association also provides
a point of contact for those wishing to learn more about the industry.
The
way forward
Among SAPIA's goals are the following:
* to ensure good governance and the highest standards of conduct
*
to promote consultation among members on issues of concern to the industry
* to create a forum for consultation between the industry, Government and other
organisations on issues of public interest, particularly matters concerning the
industry's effects on, and responsibilities to, society and the natural
environment
* to seek consensus between the industry, labour, Government
and other interests on how the industry should be re-shaped to best serve the
new South Africa
* to inform and educate the public on the petroleum
industry and improve understanding of issues which affect all South
Africans
* to publicise the industry's contribution to national welfare,
and promote its image
* to represent the SA petroleum industry at
international level
The structure of the organisation
There are six founder members of the Association:
* BP Southern Africa (Pty) Ltd
* Caltex Oil (SA) (Pty) Ltd
*
Engen Petroleum Ltd
* Shell South Africa (Pty) Ltd
* Total South Africa
(Pty) Ltd
* Zenex Oil (Pty) Ltd
The Association is run by a Board of Governors with a chairman and vice-chairman, changing on a rotational basis. The first chairman was John Drake, Chairman and Chief Executive Officer of Shell SA. Mike Rademeyer, Chairman and Managing Director of Caltex SA became Chairman in January 1996. The director is Colin McClelland, who has over 30 years experience in the industry.
The Association welcomes new members who subscribe to its goals. An application has been received from black investors wishing to achieve a stake in the industry. Such applications will be favourably received once the investors are directly involved in the industry.
Sasol would be most welcome as a member of SAPIA (and in fact already
works with the Association in a nation-wide environmental effort) were it not
in receipt of a state subsidy.
SAPIA members have been in South Africa a
long time, and intend to be here in the long-term.
Public perceptions of the petroleum industry are mostly rooted in "the bad old days". Contrary to Hollywood caricature, today's international oil companies operate with probity, under close scrutiny of numerous lobbies and interest groups. SAPIA members have been in South Africa a long time, and intend to be here in the long-term. There is no place for fly-by-nights. The petroleum industry has an unrivalled record in private enterprise for seeking openness, fair competition and democracy. The industry prides itself on having established itself as a moral industry based on firm ethical standards.
The industry is subject to the most demanding requirements of any producer. Its products are expected to be available 24-hours a day, and to be of consistent top quality, even in the remotest corners of the Republic.
The petroleum industry is the essential foundation of a growing economy.
It is the basis for so much of the nation's productivity - from the machinery
which powers factories to cosmetics; from the freight trucks which transport
food and goods to clothing, heating, lighting and a myriad of daily
necessities.
Corporate responsibility
SAPIA members have a staunch record of developing human potential in South Africa. Through a long and dedicated programme, the member companies have invested millions of rands in society. All have contributed heavily to general schooling and technical training, job creation, small business development, mass appeal sports, and development schemes.
SAPIA members have welcomed the Reconstruction and Development Programme
and, where necessary, tailored their existing and long-standing social
investment programmes to enhance it. Without exception SAPIA members have for
more than 30 years, been at the forefront of socially responsible business
practice, often leading the South African business community in good corporate
citizenship. SAPIA members have historically played a leading role in the
battle against racism. Backed by their international parent companies they were
also driven by a determination to establish non racialism as a guiding factor
in South African business practices.
This collective pressure undeniably
played a significant part in the metamorphosis of the new South Africa
This has, in the past, meant challenging Government head on, disregarding racial laws and lobbying for change. This collective pressure undeniably played a significant part in the metamorphosis of the new South Africa. The international SAPIA members resisted calls to disinvest, believing that their continued presence in the South African economy was more beneficial to the process of change - a position history has vindicated. As a result, there are today literally hundreds of non governmental organisations in South Africa who have benefited from the enlightened social policies of SAPIA members.
Oil companies were among the first to address inequalities in the workplace. They have always been among the leading companies in training and promoting managerial talent within the disadvantaged sectors of South African society - often seeing those they trained move on to other sectors of the economy. Many SAPIA members are now being tapped for their expertise in social investment by groups in other parts of the world with similar developmental problems.