SASOL
SASOL
Strong Foundations
Pave the Way to Sustained Growth PRODUCTION: Timothy Reeder
Sasol is an international, integrated chemicals and energy company, comprising two upstream business units, three regional operating hubs, and four customer-facing strategic business units. It develops and commercialises technologies and builds and operates worldscale facilities to see it produce a range of high-value product stream, including liquid fuels, chemicals and low-carbon electricity.
//
Formed in 1950 in Sasolburg, Sasol has always been a pioneer of oil-from-coal technology, effectively shifting the petroleum paradigm on a global scale. Sasol has used the combined weight of its knowledge and experience to become one of the most highly regarded manufacturers of industrial chemicals worldwide, largely thanks to its ability to leverage technologies and by effectively employing the expertise of its more than 30,000 people currently working across 33 countries. By combining this talent with its technological advantage, Sasol
2 / www.emea-energy.net
has been a leader in innovation for over six decades. In order to continue to deliver longterm shareholder value sustainably, Sasol has had to be especially sensitive to changing market needs and stakeholder expectations, and as such invest heavily into the development and updating of its methods, facilities and products, thus driving progress. As a result, Sasol is frequently spoken of as one of the country’s largest investors in capital projects, skills development and technological research and development. Recent milestones for the company
have included its listing on the New York Stock Exchange in 2003, that same year that brought construction of a pioneering and environmentallyfriendly gas-to-liquids (GTL) venture outside South Africa at Ras Laffan, Qatar. The following year was marked by the arrival of the first natural gas from Mozambique in Secunda, a town built amidst the coalfields of the Mpumalanga province of South Africa, through the cross border pipeline, as well as a merger with Exel Petroleum and subsequent entry into the South African retail fuel market. Its Secunda factory truly marked Sasol
INDUSTRY FOCUS:
PETROLEUM
as no stranger to large and complex projects, being as it is the world’s largest petrochemical complex built at one time on a single site. In 2012, meanwhile, Sasol New Energy constructed a 140 MW electricity generation plant in Sasolburg, a large industrial town within the Metsimaholo Local Municipality, and commenced the front-end engineering and design phase for an integrated gas-to-liquids facility in United States. In short, Sasol has, since the mid-1980s, been increasingly successful in improving its cost base by creating ever more value, through its huge reactors, from the gas it produces from coal; value that has lain in a growing variety of industrial chemicals now numbering more than 200. It falls to FCB Cape Town’s managing director, Eric d’Oliveira, to
sum up Sasol succinctly: “The Sasol story is an inspirational one firing the imagination of South Africa’s scientists, engineers and forward-thinkers since 1950. We look forward to working again with this world-class, truly South African brand and helping to power it to new heights as one of the country’s favourite brands,” he said, as the advertising agency FCB Africa was appointed to fulfil the above-the-line marketing communication for Sasol. After all, the main preoccupation underpinning Sasol’s work is the recognition of the growing need on the part of an increasing number of countries to secure their supply of energy and chemicals. For many countries, especially those with abundant hydrocarbons, in-country conversion of these resources into
PETROCHEMICAL PIPING SERVICES (Pty) LTD SCOPE OF BUSINESS PPS offers a shop fabrication service, as well as a field installation and maintenance service.PPS also has the project management skills to offer statutory and shutdown maintenance projects on a turnkey basis. SERVICES Workforce are qualified in accordance with ASME IX and are experienced in the application of fabrication codes ASME VIIIDIV 1 & 2 • • • • •
Shutdown maintenance General installation & maintenance Equipment modification Turnkey Projects Shop Fabrication
HEAD OFFICE
FOR
44 Drakensberg Street, Secunda, 2302 P.O. Box 7781, Secunda, 2302 Tel: (017)631 2586 Fax: (017)631 3728 E-Mail – anaude@petropiping.co.za
4 / www.emea-energy.net
• • • •
Pipe Systems Structures & Walkways Tanks Pressure Vessels
SITE OFFICE
SSF – Pipe shop c/o Road 10 & 2D Sasol Site, Secunda, 2302 Tel: (017)610 3020 Fax: (017)610 4612 E-Mail – reception1@mweb.co.za
liquid fuels and chemicals can be a significant factor in boosting national economies. Sasol has a focused and strong project pipeline, which means that it is actively capitalising on those growth opportunities that play to its strengths in Southern Africa and North America, always focusing on creating value sustainably. Its core operations are divided into two principal operating business units. Sasol Mining oversees six coal mines that supply feedstock for the Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. The coal supplied to Sasol Synfuels is mainly used as gasification feedstock, while some is used to generate electricity, while at Sasolburg Operations it is used to generate electricity and steam. Coal is also exported from the Twistdraai Export Plant to international power generation customers. Partnership with surrounding communities forms an
SASOL
// THE SASOL STORY IS AN INSPIRATIONAL ONE FIRING THE IMAGINATION OF SOUTH AFRICA’S SCIENTISTS, ENGINEERS AND FORWARD-THINKERS SINCE 1950 // integral part of the division, through the promotion of social and economic development in South Africa by implementing Social Labour Plans (SLPs) and Local Economic Development Projects (LEDs); Sasol Mining is not just about mining coal, but more widely about unearthing opportunities. Sasol Exploration and Production International (SEPI), on the other hand, develops and manages the
group’s upstream interests in oil and gas exploration and production in Mozambique, South Africa, Canada, Gabon and Australia. SEPI is driving the development of Sasol’s upstream business to allow the group to meet its strategic objective of accelerating the growth of its proprietary GTL technology. In recent years a number of steps have been taken to expand its global upstream portfolio, encouraged by the global abundance of natural gas and the rapid development of the shale gas industry, as well as the lower carbon intensity of natural gas. Much investment has been made in ventures ranging from onshore and offshore conventional and unconventional shale and tight gas. Sasol’s current work is also attracting positive attention. A survey carried out earlier this year revealed the company to be the purveyors of the most popular petrol stations in South Africa, attracting the most clients per site. The data comes from a joint
venture between researcher Lightstone Explore and Tracker, in which Lightstone analyses around 2.5 million vehicle trips per day, then uses this information to develop a demographic profile of the vehicle owners and their preferences. “We are, for example, able to determine whether an ATM or a coffee shop or a Woolworths will attract more customers to a service station. We can see which chains are not fully represented in the market and determine which areas are suitable for a new service station,” says Lightstone Explore CEO Trevor Holmes. Good location is one of the main reasons why Sasol has the highest visit ratio – 4,221 visits to each of its 294 sites over last three months – according to the research. Shell is second with 3,505 visits at 528 service stations. To profit from such good news, Sasol could acquire as many as 200 outlets to add to its network of 400 stations, according to co-CEOs Steve Cornell and Bongani Nqwababa. It could also provide branding to
www.emea-energy.net / 5
THE SPECIALISTS
INDUSTRY FOCUS: XXXXXXXXXX
•
tailor made innovative workforce solutions
•
recruitment | engagement | payroll | industrial relations | litigation | industrial action management trade unions | flexibility | financing
For over 20 years, Phakisa has offered customised service excellence to all industries in South Africa, striving to be strategic business partners offering a workforce grounded in stability, maximum productivity and minimum expenditure. Thus, Phakisa ‘s expertise, and experience in the industry environment, guarantees that all clients are positioned with a competitive advantage.
Phakisa MSP (Pty) Ltd and Phakisa Technical Services (Pty) Ltd specialise in the following market sectors – • Building / Construction
• Civil Engineering • Electrical Engineering
• Mechanical Engineering • Structural Engineering • Manufacturing • Mining • Petrochemical
Phakisa MSP (Pty) Ltd
Phakisa MSP (Pty) Ltd (Managed Services Provider) provides clients with business solutions and is an alternative to permanent employment.
BRANCHES: HEAD OFFICE & National Recruitment Centre: Ger miston: Tel: 011 916 1737 Cape Town: Tel: 021 981 5320 xx / Issue No.xx / www.enterprise-africa.net Rustenburg: Tel: 014 596 6226
Phakisa Technical Services (Pty) Ltd
Phakisa Technical Services (Pty) Ltd offers service excellence in the Recruitment & Outsourcing of temporary / contract or permanent placements.
Stander ton: Tel: 071 681 0698 Durban: Tel: 031 201 8145 Sasolburg: Tel: 016 976 1560 Secunda: Tel: 017 638 1159 E-mail: sonia@phakisahldg.co.za Website: www.phakisaholdings.co.za
SASOL
// OUR DELIVERY TRACK RECORD PLACES US IN A STRONG POSITION TO REALISE GREATER VALUE FROM OUR FOUNDATION BUSINESSES // other gas stations, they said. “We feel like we’re giving away margin, not matching our retail capacity closer to our actual production capacity,” Cornell said in an interview at the company’s headquarters in Johannesburg. While the world’s largest maker of fuel from coal produces about 30% of South Africa’s supply, only about a third of that is sold through Sasol retail stations, according to Nqwababa. In November Sasol unveiled its refined corporate strategy, in which it set out a clear path for sustainable growth and accelerated shareholder returns. Cornell stated: “In developing our strategy, we considered both the opportunities and risks we face, informed by developments in the external environment. It is clear that megatrends influential to our business
will result in greater demand for chemicals and energy products in key markets we serve.” Among those megatrends and assumptions central to Sasol’s strategic choices are global population growth and further urbanisation and sustained volatility in both oil prices and exchange rates. “Against this backdrop, our value-based growth strategy is premised on further enhancing our foundation businesses, leveraging our core strengths in specialty chemicals, exploration and production (E&P) and retail fuels, underpinned by increased discipline in capital allocation,” said Cornell. Sasol’s foundation businesses provide a robust platform for longterm growth and delivery of ongoing value to shareholders. Nqwababa concluded with an insight into the
value of Sasol’s foundations to its continued prosperity. “Our delivery track record – evidenced in recent years by significant volume improvements at key facilities, our competitive cost position and global portfolio of highly cashgenerative, diversified assets – places us in a strong position to realise greater value from our foundation businesses. “Here, operational excellence, continuous improvement and digitalisation programmes, as well as rigorous asset reviews, will enable us to become a more resilient, efficient and effective organisation.”
SASOL +27 10 344 5000 @SasolSA www.sasol.com
www.emea-energy.net / 7
AFRICA
THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS
Published by CMB Multimedia Chris Bolderstone – General Manager E. chris@cmb-multimedia.com Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-multimedia.com www.cmb-multimedia.com
Issue No.65
www.enterprise-africa.net
ALEXANDER FORBES
CMB Multimedia does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Multimedia Ltd 2017
Journey of a
Lifetime
Exclusive interview with CEO Andrew Darfoor ALSO IN THIS ISSUE:
Buffalo Coal / Nautic Africa / Grindrod / SAOTA
AS FEAT UR ED IN
ENTERPRISE AFRICA
DECEMBER 2017