COMPANY PROFILE
2015
BP SA
+27 11 488 5111 | www.bp.com
company profile
BP: Helping you to get further Editorial: Harriet Pattison
South Africa holds valuable potential for one of the world’s largest energy companies and with three divisions currently in operation, BP SA is now looking to invest an estimated R5 billion over the next five years with R2.5 billion of this being spent on upgrading the SAPREF refinery - helping South Africa meet the cleaner fuels and efficiency specifications looking to be set out by Government in 2017.
BP is, irrefutably, one of the world’s leading international oil and gas companies – with fuel used by clients for an array of applications including; transportation, energy for both light and heat and not to mention, the importance of petrochemical products. The South African arm of BP currently operates in Angola, Mozambique and South Africa and concentrates on finding, extracting and refining oil and gas to developing advanced bio fuels for those living across southern Africa.
ANGOLA BP SA focuses on the exploration and production of oil and gas in Angola - an upstream location. Its plans long-term are to enhance its efforts there, helping to
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contribute significantly to both the social and economic developments of the country. To date, Angola stands as one of the fastest growing businesses in the company’s E&P portfolio and represents one of its most important assets with an investment, to date, of more than $25 billion. BP now plans to invest a further $15 billion over the next ten years in exploration and development ventures. The company’s history in Angola dates back more than three decades. Following a merger with Amoco in the 1990’s, it gained further and more substantial interests in offshore deep and ultra-deep waters with blocks 18 and 31 located in the Lower Congo Basin. Block 31 is a large-scale deep-water production – Plutao, Saturno, Venus and Marte (PSVM). As production started in December 2012, a production rate of 150,000 barrels a day was obtained only a year later. With water depths of 2,000
BP SA
©Hans Engbers | Shutterstock.com
meters and a width spread across 34km, the production capacity was set up in November 2013 following the implementation of a new well in the Marte field. MA-PA was the first well to be brought online from the Marte field to the PSUM FPSO – the first FPSO in Angolan ultra-deep waters – the field produces hydrocarbons via the FPSO and has a storage capacity of 1.6 million barrels. In 2011 alone, BP SA acquired a further five new deep and ultra-deep water blocks, located in prime positions, in the Kwana and Benguela basins, including blocks 19 and 24. These regions are particularly sought after due to the potential they hold – much of this potential is attributed to the geology which is thought to mirror Brazil’s hydrocarbon rich pre-salt play. With a total acreage of 32,650km2, today BP SA has interests in nine blocks across Angola.
SOUTH AFRICA With over 500 BP service stations nationwide, the South African sector of BP continues to hold its position as one of the largest oil companies in the country. Focusing on the refining and marketing aspect of fuels and lubricants, BP SA also operates nine depots and three coastal installations with the largest rail gantry in Africa, located in Pretoria. With further upgrades in the pipeline, these will help to facilitate the insurance of security of supply in the locations that BP currently operates in – ensuring a safer and much more efficient distribution, as a result of improved road safety and shorter delivery routes to customers. And through the company’s new and cutting edge Fuels Technology Center in Johannesburg, BP SA is able to provide differentiated fuels to the South African market. With more than 1,000 employees working for the
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company profile
Š TK Kurikawa | Shutterstock.com South African subsidiary, BP SA now has offices in Cape Town, Johannesburg and Durban. In a joint venture between Shell SA Refining and BP SA, SAPREF stands as the largest crude oil refinery in southern Africa with 35% of its refining capacity. The statistics for the refinery are certainly impressive with up to 24,000 tons of crude oil processed on an everyday basis and 2.7 billion litres of petrol produced every year - incidentally, the latter is enough to transport 800,000 cars all around the world. The conditions are harsh for the 700 employees and 500 contractors, working in temperatures of up to 700 degrees and pressures up to 120 bar. Refining a variety of petroleum products, including; diesel, aviation fuel, paraffin, petrol and marine fuel oil, SAPREF has a design capacity to process between 180,000 and 190,000 barrels per day, all dependent on the type of crude oil processed.
MOZAMBIQUE With operations beginning as far back as the 1920’s, BP Mozambique now stands as the second largest oil company operating in South Africa today. Originally going into a partnership with Shell under management
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of BP, Shell left Mozambique in 1978 leaving BP to take over the assets. A supply and marketing business with SA Fuels Value Chain (SA FVC), the Mozambique arm of the business includes; retail, commercial, aviation and lubes operations. Today, BP operates in Mozambique with no external shareholding and stands as the biggest foreign oil company in the country. Supplying fuel to various industries, BP Mozambique sells solvents, aviation fuels and lubricants to clients and with 150 employees across its business, the company now owns 28 retail outlets and maintains a presence at eight airports. In 2012, BP Mozambique decided to rejuvenate and upgrade the Nacala terminal due to an increasing market demand, at an estimated cost of tens of millions of dollars. Helping to increase the oil and gas capacity of the region, it is hoped that, long term, this upgrade will help to ensure a more efficient security of supply for the nation. Standing as one of the central locations for operations within Mozambique, the Nacala terminal upgrade will include the installation of new pipeline, improvements to road gantry, the renewal of tank farms and pump stations and the modernisation of
BP SA the fire-fighting system. With US$10 million already invested in this project, the social benefits are evident with over 200 locals employed in various roles throughout the process and further opportunities expected in the future. Implementing new operational methods, this upgrade has also seen the latest technological advancements being put into practise.
“We are encouraged by the progress being made in South Africa and Mozambique to establish an environment of policy certainty and continuity for all economic activity”
With the aim to provide the widest range of BP’s globally produced chemicals to the South African market at competitive prices, a range of BP’s chemical products are available at BP Amoco’s global production base. Looking to the future and BP SA has set aside R5 billion to invest in South Africa and Mozambique over the coming years – with R2.5 billion of this planned for the SAPREF refinery upgrade in a continued bid to ensure it meets the cleaner fuels specifications the African government is looking to introduce and implement in 2017. R1 billion is to be spent on new fuel terminals in South Africa and Mozambique with R2 billion spent on upgrading and expanding its retail network. This significant investment highlights further the growing confidence and commitment in South Africa as an attractive investment destination, especially for some of the larger energy brands. Iain Conn, BP Group Chief Executive for refining and marketing explains: “We are encouraged by the progress being made in South Africa and Mozambique to establish an environment of policy certainty and continuity for all economic activity.”
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The company is also planning to recapitalise the Matola and Beira terminals through the refurbishment of the fuel station network, storage depots and aviation fuel supply at the new Maputo airport. Much like the Nacala upgrades, these projects will help to deliver and ensure a more efficient fuel-supply service to Mozambique.
BP Africa’s preferred service provider!
BP PRODUCTS Primarily used for business and industrial use, BP has a range of products that are used every day throughout the continent. Ultimate fuels are a much cleaner alternative – specially formulated, they contain protection properties and work to move much more efficiently than standard fuels. Ultimate fuels also help to ensure the elimination of harmful deposits in car engines, creating the optimum operation of each vehicle. One of the world’s leading suppliers of fuels and technical services, BP Marine supplies fuel to some of the largest tanker, container and bulk shipping companies in the world. While managing the skies, Air BP stands as one of the largest suppliers of aviation fuels and services with an impressive network of operations spanning across 600 locations in over 45 countries. Selling over seven billion gallons of fuel every year, Air BP places 65 of its 600 locations now in Sub-Saharan Africa.
Engineering Fields: • • • • •
CIVIL STRUCTURAL MECHANICAL ROADS & TRANSPORTATION ELECTRICAL
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URBAN GEOTECHNICAL PETROCHEMICAL ENVIRONMENTAL CONTAMINATION
Branches: CAPE TOWN • DURBAN • JOHANNESBURG PORT ELIZABETH • EAST LONDON • GEORGE PIETERMARITZBURG • PORT SHEPSTONE
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