BP is no longer trading in Kenya, Tanzania, Zambia, Zimbabwe, Malawi, Namibia, Swaziland, Lesotho, Botswana or Malawi.
In some of these countries had a BP presence for almost a century. Were all these BP associate companies suddenly unprofitable or was something deeper at work?
The sub-Saharan oil industry has registered the withdrawal from the region of major oil companies.
A clue could be the recent spat between Chevron and a new oil industry entrant in Cape Town in the shape of a black economic empowerment company called Burgan. Chevron claims it threatens the viability of their refinery with its ability to import, store and sell motor fuels.
Chevron’s complaints go further. Probably speaking for the other South African crude oil refiners, it points bitterly to the refusal or delay, by the government, to allow a “cost recovery mechanism” to make it worthwhile to upgrade local refineries to produce the higher quality fuels demanded by motor manufacturers.
Chevron argues that our regulated oil industry is a strategic asset with sacred status. It believes nothing should be changed without industry approval.
A more powerful reason for a reluctance to invest in new plant without a sweetener from the Treasury may be found in what has been happening in Saudi Arabia and India. In both countries there are now new and massive crude oil refineries producing, and selling to all comers, large volumes of motor fuels and other petroleum products.
The nearest customers for production surpluses of these huge refineries are in Africa, particularly those on its eastern seaboard – South Africa being the biggest.
The economies of scale is deadly. Saudi Arabia can undercut any refinery far from crude oil sources – such as those in Durban, Cape Town, and Gauteng. It can also produce the new higher quality fuel. Local refineries cannot do so.
South Africa’s crude oil refining capacity is 553 000 barrels a day. Saudi Arabia production is huge by comparison. Estimates are 3 million barrels a day and upwards. Some analysts (The Wall Street Journal) expect Saudi Arabian refining capacity to rise to 8 million barrels a day within a decade. Others predict 12 million barrels a day within 10 years.
Not only Saudi refineries pose a severe threat to our local ones. There are large ones in India too. In particularly the one recently completed by Reliance. It alone can produce more that all six of our refineries (including Sasol) combined. It has a reported capacity of 1.2 million barrels a day. It is the world’s largest.
Trade and Industry Minister Rob Davies has given an excellent summary of benefits to both the US and Africa in general, and South Africa in particular in The BusinessDay.
The newspaper also reported $14bn worth of company investments into Africa, all emanating from the developed US as a global superpower.
As a proud South African, it gives me great pleasure to remind all that South Africa is the giant at the forefront of stimulating growth in the US. South Africa is re-industrialising the US!
A single former apartheid South African company is doing all of the above by finalising its commitment to invest up to $21bn into the “developed” US. This giant South African petrochemical investment into the US will reindustrialise the US, make the US less dependent on fuel imports, make it less vulnerable to competitive dollar depreciation, and make the politically strong US even stronger.
Thus, when it comes to trade and industry relations between small South Africa and the US superpower, we may be proudly South African and not be too humble: a single South African company invests more into the US economy, strategic industry, fuel independence and associated sovereign power, than a lot of US companies combined do in South Africa.
Thus, the South African investment into the US, via the previously state-owned Sasol (40% of shares are still owned by the Industrial Development Corporation, the Public Investment Corporation and the Government Employees Pension Fund) is gigantic relative to those of the US companies alluded to in the African Growth and Opportunity Act (Agoa) saga.
I thus predict that Agoa will be extended, South Africa included, because South Africa, via Sasol, is actually the Goliath in the industrial redevelopment and 4% economic growth rate of the US, where unemployment is low.
Eni has agreed to buy a 40 percent interest in an exploration permit granting rights to explore an offshore area of 82,000 square kilometres off South Africa’s east coast for hydrocarbons, the Italian oil and gas group said on Tuesday.
Eni sealed the deal with Sasol Petroleum International, the upstream oil and gas subsidiary of Sasol Limited, it said in a statement without disclosing any financial details.
Sasol had been granted the permit by the Petroleum Agency of South Africa (PASA) in late 2013 and the accord is subject to government approval.
The deal “reinforces Eni’s position on the East Africa coast, where Eni is already present with exploration activities in Mozambique and in Kenya,” the group said in a statement.
The exploration right (ER) permit 236, of which Sasol would transfer a 40% ownership to Eni, was granted to Sasol in November last year and comprised the right to explore for hydrocarbons in the Durban and Zululand basins offshore KwaZulu-Natal.
Sasol would retain the remaining 60% interest in the permit.
“The establishment of our partnership with Eni in respect of our offshore South African interests complements Sasol’s strategy to develop sustainable energy solutions, which will serve to ensure all-important economic growth and development in Southern Africa and the broader region,” Sasol CEO David Constable said.
He (David Constable, CEO SASOL) added that the accelerated exploration of ER236 would have many positive benefits for South Africa and the broader region, in terms of energy security and increasing levels of international investment.
Eni was among a number of international energy companies to have entered South Africa – the continent’s largest oil importer – in recent months.
If like the geologically similar northern Palma-Mamba gas fields, the Zululand gas basin holds up to 75tcf of reserves, gas industry experts expect the Zululand basin gas to postpone and even replace the Karoo shale gas development too.
South African petrochemicals group Sasol Ltd is keen to invest in a domestic shale industry once it gets off the ground, its chief executive said, in a potential challenge to oil major Royal Dutch Shell.
South Africa’s cabinet proposed new regulations to govern exploration for shale gas late last year after it lifted a 2012 moratorium on the activity in the central Karoo region.
Fracking in the region might tap what is believed to be some of the world’s biggest reserves of the energy source and the government wants to develop an industry that it sees as a potential game-changer in Africa’s largest economy.
“I am very excited because of the technologies we can bring to the table. We’ve got shale gas upstream experience in British Columbia,” Sasol Chief Executive David Constable said on Monday.
“We want to get involved and participate and monetize that gas in country with gas to liquid, gas to power, gas to chemicals,” he said after the group posted a 26 percent rise in half-year earnings.
Shell has applied for an exploration licence and once all of the new regulations are in place it is expected to be near the front of the line.
Constable said Sasol wanted to take part. “We are really interested in what is going in the Shell block and would love to farm in or take a piece of it. Shell is issuing profit warnings and pulling back capex right now,” he said.
Shell said in January that it planned to cut capital spending to $37 billion this year from $46 billion in 2013, following a profit warning.
Shell was not immediately available to comment on Monday.
Constable said the government should take Shell’s strategy into account.
South Africa’s Public Investment Corporation (PIC), which is Sasol’s biggest shareholder with a 13 percent stake in the company and manages 1.4 trillion rand ($130.3 billion) in civil servant retirement funds, has also said it wants a big slice of the shale pie.
Fracking involves pumping pressurised water, chemicals and sand underground to release gas trapped in shale formations and the prospect of it occurring in the semi-arid and sparsely-populated Karoo region, known for its big skies and scenery, has raised concerns anong conservationists.
Constable said Sasol’s experience in British Columbia would enable the company to carry out the process “in an environmentally friendly fashion.”
Another pale male: Argentine model and presenter Mario Guerci
by TAU Bulletin
The state of the nation is no more ludicrously evident than Gauteng premier Nomvula Mokonyane’s recent “warning” that “pale males” would return to government in Gauteng if SA’s opposition Democratic Alliance party wins next year’s provincial election.
“It can’t happen, it will not happen” she declared. “Reversals in transformation are unacceptable, and the Gauteng public must be spared the “white gevaar” (danger).
Where in the world are efficiency, skills, creativity and diligence seen as a danger? Only in South Africa, where so-called liberation credentials, party membership and loyalty trump the need to maintain the first world country and its infrastructure which was handed to the ANC on a plate after the 1994 election.
Ms. Mokonyane’s racial invective and resentment has been received with a muted tolerance. Despite the non-racial assurances in the Founding Provisions of South Africa’s constitution, the governing party’s racial diatribes against, mostly, whites continue apace. Indeed, they seem to have increased. The State President’s YouTube clip where he urges his supporters to “kill the boers” and that his cabinet would “kill with a machine gun” is still running, without any apparent move by YouTube to take it out of circulation. (Yet a YouTube clip made by two white South Africans saying they refuse to apologize for being who they are was taken off within a few days of its appearance on the internet.)
South Africa has two parallel universes – the ANC’s self-delusion and the reality. The fact that the country has dramatically slipped down the world’s various achievement indexes over the past nineteen years has either escaped Ms. Mokonyane’s notice, or she is disingenuous in the extreme. Does the rather corpulent Ms. Mokonyane not realize that 90% of the food she and her countrymen consume is produced by pale males? That virtually everything she takes for granted in this country was created by pale males?
From where did the railways, roads, commercial farms, schools, hospitals, potable water and electricity transmission emanate? The very language she uses in a legislature which is not part of her cultural heritage is a language of the pale male. The news print that distributes her humbug is not of her culture either. But she is selective in her vitriol. When this lady shops, she hurries to the pale males’ luxury shopping centers: she was recently seen at up market Hyde Park “posing proudly with her R10 000 LK Bennet shoes and matching handbag”. (Tony Leon, Business Day 30.7.13). Pale males are excoriated but they are good enough to produce and supply the luxuries which she and her fellow anti-white friends cannot live without.
There is no empirical evidence to show that without the intervention of others in Africa (including pale males), Ms. Mokonyane’s culture would have evolved any further than that of those “lost” tribes one finds in the Amazon and Papua New Guinea. She should be grateful that that particular ship sailed around the Cape of Good Hope many years ago and that it decided to stop for victuals. Non-pale male groups who could have manned that ship may not have been so conciliatory to the locals, then and now.
Who created the Sasols, the Iscors, the Eskoms and the country’s nuclear capacity? Who rid the country of the tste tste fly and malaria? Who developed Africa’s premier agricultural and veterinary service, used by the whole continent? Who produces maize and other grain surpluses year after year on the continent that cannot feed itself?
And, conversely, who is busy destroying what used to be the African continent’s pin-up country?
Certainly not pale males. Ms. Mokonyane and her compatriots should look in the mirror. But if one’s modus vivendi is self delusion, then blame is the name of the game. The world has taken note of the Africa of today. It is not a pretty picture. Zimbabwe went from the continent’s bread basket to a basket case. Few if any of the continent’s governments can feed their people. Corruption, nepotism, inefficiency and venality are the order of the day. South Africa is no exception. Who is to blame for Liberia’s status as an African cesspool, or for Ethiopia’s failed state ranking? Colonialism? Apartheid? Pale males? Neither of these countries was subjected to colonialism or apartheid. They are travesties because the people who live there are who they are.
South Africa today could certainly do with some pale males to put things right. But this is not the ANC’s priority: a deep racial inferiority complex trumps practicality.
The facts
Pale males around the world are denounced by the non-achievers with relentless regularity. Whites in the United States complain about this as well. We quote Fred Reed from the US’s Nationalist Times:
“I am weary of the endless denunciation of ‘white privilege’; the calls to abolish all tests in which whites excel, and the need to make universities and police forces and advanced placement classes ‘look like American demographics’. It might be well to note the utter dependence of the US on white men who have contributed virtually everything that keeps the affirmative action classes from living in mud huts.”
Reed continues with examples of this contribution: “Euclidean geometry, parabolic geometry, hyperbolic geometry and projective geometry. Physical chemistry, organic chemistry, biochemistry. Classical mechanics. The indeterminacy principle. The wave equation. The Parthenon. Air conditioning. Number theory. Romanesque architecture. Gothic architecture. Information theory. Entropy. Enthalpy. Almost every symphony ever written. Pierre August Renoir. The diatonic scale. The mathematics behind the twelfth root of two and all that. The Bohr-Sommerfeld atom. The purine pyrimidine structure of the DNA ladder. Single sideband radio. All other radio. Dentistry. The internal combustion engine. Turbojets, turbofans, Doppler beam-sharpening. Penicillin. Airplanes. Surgery. The mammogram. The Pill. The condom. Polio vaccine. The integrated circuit.
“The computer, computational fluid dynamics. Euripides, Sophocles, Aristophanes, Homer. Glass. Rubber. Nylon. Roads. Buildings. Acetyl-cholinesterase inhibitors. Silicone. The automobile. Bug spray. Public cryptography.”
“Like it or not white men can do these things, have done them, and continue to do them. The evidence shows that all groups receiving affirmative action have not done them, and cannot do them, which is why they need affirmative action.
“The pattern of white men doing difficult things continues. Consider the founders of companies in information technologies. Not quite all white, but all men. Anyone who watched the landing of Curiosity on Mars will have noticed that Mission Control consisted overwhelmingly of white men. If I were rude, I would say to those who criticize: invent your own things.”
Reed cites South Africa as an example of a tragedy in the making. “A constantly dwindling number of whites are at the mercy of a predatory welfare class and it’s possible they can’t and won’t carry the rest of the population. If things get worse for them, they will simply flee the country.”
Whether this scenario plays itself out in South Africa is up to the whites. But Ms. Mokonyane mustn’t take too much for granted. Her dislike of pale males borders on the obsessive, to the point where common sense and practical considerations for the benefit of all South Africans are cast aside in an all-consuming and embittered realization that her ANC cannot feed its people, cannot govern, and are no better than what the world has seen emanate from the rest of the continent over the past fifty years. She knows this, the ANC knows this, and the world knows it. Keeping out the pale males won’t improve the ANC. This racial animosity is inimical not only to whites but, eventually, to the future of all South Africans.
The pale male acrimony is however selective. Ex president Nelson Mandela was not interned in an ANC-run hospital. The new ANC elite have quietly bought houses in so-called white areas. They send their children to white schools. They want the pale male’s education system. (Every university in South Africa is a white creation). What is the yardstick against which anything of worth in South Africa is judged if not against a pale male-created yardstick? Are the elite’s suits bought from Nigeria or Italy? Is there such a thing as a Ghanian IPod? Do they fly Air Kenya or British Airways? Do they go to Mali for their holidays or to Paris?
A South African business journalist refers to “the African No” – “a jumbled melee of endless meetings, unreturned phone calls and ignored e-mails”. Compare this approach with the white world. The United States for example accounts for 4,5% of the world’s population but 25% of the world’s GDP. When people flee their terrible countries they try for Europe, Australia and other pale male bastions. They don’t want to emigrate to Zambia or the Sudan.
A cursory trawl through South Africa’s productive sector sees pale males as police divers, as rescue helicopter pilots, as paramedics, as the donors to charities, as the bedrock of the taxpayer base, as the underpinners of the medical profession, the service industry, the banking and the mining sector. The country is divided into the producers and the consumers, and we know on which side of the divide the pale male sits.
Virtually all of the productive farms that were handed over to ANC supporters under the government’s land redistribution policy failed: a pithy example of pale male producers and ANC-created destruction.
It is a pity that more media space is not given to a frank analysis of who are the drivers of the South African economy, instead of to those who talk about nationalization, about transformation, about white racism and so-called privilege. South Africans might get a clearer picture of who is really important in the grand scheme of things, as opposed to those who can talk the leg off an iron pot, hold press conferences, fly all over the world first class, endlessly discuss turnaround strategies and blame everyone but themselves for their shortcomings. Within ten years, South Africa’s social spending (including huge government employee wage bills) will exceed government revenue. Employee compensation as a share of government income went from 31,7% in 2008 to 44,3% in 2012. South Africa’s pale males are a finite group – even they cannot hope to foot the bill for this parasite profligacy forever.
Maybe then South Africa will value its pale males, but it may be too late.
(Extract from Nationalist Times courtesy of Impact magazine)
Petrochemical giant Sasol has pulled the plug on a shady empowerment deal with union boss Simon Mofokeng and wife Maureen after Business Times exposed how they used fake documents to clinch contracts worth over R300-million.
But this still leaves questions unanswered, including how Sasol could have done business with Mofokeng’s company for 13 years before uncovering the deception.
Sasol confirmed this week it would report a case of fraud to the police, which means the Mofokengs are likely to face charges along with their financial director, Vusani Moyo.
Simon Mofokeng is the general secretary of Cosatu-affiliated Ceppwawu (Chemical, Energy, Paper, Printing, Wood and Allied Workers Union) – a serious conflict of interest, as Ceppwawu has a major presence at several of South Africa’s top listed companies, including Sasol.
Sasol, which is listed on the JSE and the New York stock exchange, said on Wednesday it had cancelled its coal-handling contract with Khotso Batho “with immediate effect” for issuing “fraudulent letters of good standing to Sasol”.
“Sasol is not immune to corruption, but in instances such as this, where acts of fraud are identified, we will act swiftly and decisively,” said Sasol CEO David Constable.
The scandal has also sparked a major overhaul of Sasol’s procurement processes to make it harder for contractors to get away with fraud. It also launched an internal probe into the role of Sasol staffers, including the likelihood that they had failed to act against Khotso Batho despite being given evidence of wrongdoing.
“Any member of staff found to have knowingly facilitated a corrupt or noncompliant relationship with this service provider will face disciplinary action,” said Constable.
Well-placed sources told Business Times previously that Mofokeng had enjoyed a close relationship with Sasol top brass, including former Sasol Mining MD Hermann Wenhold, who is now group safety manager.
Sasol declined to confirm whether Wenhold or other senior executives were under investigation.
A three-month investigation by Business Times previously exposed how Mofokeng used his influence as a union boss to extort special treatment for his company from Sasol, which renewed its contract twice even though it failed to comply with its procurement rules.
These included needing a tax clearance certificate and letters of good standing from the labour department proving Khotso Batho was up to date with payments to the government’s compensation fund.
Mofokeng earned a salary of R130 000 a month as a Khotso Batho executive while employed as a full-time Ceppwawu office bearer, even though the union does not ordinarily allow its salaried top brass to hold paid outside employment.
Business Times established that Khotso Batho owes the SA Revenue Service at least R22-million in unpaid taxes, has failed to produce audited financial statements in the last three years, and is up to a year behind in submitting its VAT, PAYE and UIF returns.
It has been in arrears with the compensation fund since 2001. – timeslive.co.za
South African petrochemicals giant Sasol has signed a deal with global fast-food company Burger King which will see the hamburger chain opening sit-down and takeaway restaurants at Sasol’s fuel station forecourts countrywide.
Burger King opened its first South African restaurant in Cape Town in May this year.
The deal allows Burger King South Africa to open stores across Sasol’s national fuel retail network and will award opportunities to current and potential Sasol franchisees.
“The agreement with Sasol allows us to position our brand across new channels and therefore expand our number of guests and restaurants in South Africa, as well as offering a new way of enjoying our products to clients across the country,” Burger King president for Europe, the Middle East and Africa, Jose Cil, said in a statement on Monday.
It also supports the company’s expansion plans. “Partnering with Sasol supports our rapid expansion plans and will enable us to increase our growth potential in South Africa in the next few years,” said Burger King South Africa CEO Jaye Sinclair.
Burger King South Africa was formed as a joint initiative between Burger King Worldwide and Western Cape-based gaming and leisure firm Grand Parade Investments.
“The national roll-out will commence towards the end of 2013 and will further enhance our job creation initiative,” Sinclair said.
“Partnering with Burger King, one of the leading quick service restaurant (QSR) brands, is in line with our strategic vision and and will allow us to expand our retail footprint in South Africa,” said Sasol Oil managing director, Alan Cameron.
“This collaboration will allow two leading brands to leverage each other’s strengths and capabilities.”
Partnering fuel retail groups and QSR brands is an increasingly common international trend as it offers both parties a point of differentiation and competitive advantage, according to Grand Parade Investments chairperson, Hassen Adams.
“There is a natural symbiotic relationship between Burger King South Africa and Sasol with both companies focused on creating future franchise opportunities for local South Africans,” he said.
South African manufacturers of truck and bus tyres are the latest target of a Brazilian antidumping investigation against South Africa, following an application by the Brazilian body representing tyre manufacturers, ANIP.
This comes in the wake of another trade probe of South Africa, over allegations of Sasol dumping polypropylene products, launched in March this year. Meanwhile, the tiff between the two Brics (Brazil, Russia, India, China and South Africa) members about cheap chicken imports to South Africa has been continuing.
Brazil threatened legal action at the World Trade Organisation (WTO) last year when South Africa’s International Trade Administration Commission investigated the dumping of frozen Brazilian poultry in South Africa and introduced a provisional antidumping duty.
Brazil initiated an antidumping probe on June 10 into imports of new truck and bus tyres from South Africa, Russia and Asian countries, giving importers 40 days to respond. It alleged South Africa’s manufacturers were dumping at a 51.98% discount.
South African Tyre Manufacturers Conference CEO Etienne Human said the claim only recently came to its attention. “The (conference’s) members are in the process of obtaining technical advice on how to deal with the Brazil antidumping application.”
An industry expert on Wednesday said Brazil had been “quite aggressive” in protecting its manufacturing industry, and implied that the authorities did not always follow WTO rules diligently on the introduction of trade remedies.
International trade law firm Felsberg & Associates said Brazil had introduced five antidumping investigations within two months at the end of last year, ranging from seamless carbon steel pipe imports from China to tyres from South Korea, Thailand, Taiwan and the Ukraine.
Apparently requests by the South African Tyre Manufacturers Conference for discussions with the Brazilian authorities had been unsuccessful.
The tyre antidumping initiation document says that due to the lack of pricing data for the products probed, the normal value for all investigated countries was based on “estimates of production costs, operational expenses and profit margins”. – BDLive
Kwadlangezwa – The SA Communist Party would like to see Sasol [JSE:SOL] nationalised, but if this could not be achieved immediately the petro-chemical giant should then be subjected to a windfall tax on extra profits.
SACP deputy general secretary Jeremy Cronin said this was one of the many draft resolutions that emerged from the party’s four-day long congress that wrapped up on Sunday at the University of Zululand near Empangeni on.
Speaking at a press briefing following the end of the 13th National Congress, Cronin said that while the party’s aim was for the total nationalisation of Sasol, there was “no reason why we should not propose a windfall tax”.
He said the SACP believed Sasol was raking in huge profits. It cost the company $40 (about R331) to produce the equivalent of a barrel and it was being paid at the going world market price for oil, which was close to $100 (about R826) a barrel.
Cronin said a resolution to call for the re-nationalisation of AcelorMittal SA [JSE:ACL] (formerly Iscor) was based on the fact that the SACP believed it was being stripped by its international parent company.
He said another draft resolution called for the transformation of the SA National Defence Force (SANDF).
Cronin said the colour composition of the SANDF was not at the centre of the call for transformation, but rather they way it was run and operated.
Media ownership was also an issue that was hotly debated by delegates, according to Cronin.
The role of the national broadcaster in particular received much attention with a draft resolution calling for 60 percent of the broadcaster’s budget to come from public funding.
Cronin said there was also a move against foreign ownership of media in the country and that there should be greater diversity.
General secretary Blade Nzimande’s failure to arrive at an SACP fundraising gala dinner was raised at the press conference – with Nzimande saying it was not a snub to deputy president Kgalema Motlanthe, who spoke at the event on Saturday night.
“I was simply exhausted. There was nothing else.”
During his closing address to the congress, Nzimande said others were laying claim to Nelson Mandela’s legacy and using it against the SA Communist Party and its allies.
“Our revolution is not for sale.”
Without making a direct reference to the Democratic Alliance, but referring to “those in the Western Cape”, he warned that the former president’s legacy was being used against the party to discredit it.
In his speech the long-serving party member again repeated calls for “tender-trepeneurs” to be flushed out of the party.
He also called on municipalities to stop outsourcing work, but instead to increase their own capacity and employ more people.
Referring to the African National Congress’ recent policy conference, Nzimande said he welcomed the resolutions from that conference.
The ANC had accepted that “it can no longer be business as usual”.
The SACP was more united than ever and a clear indication of this fact was that the party’s leadership had been elected by consensus, Nzimande said.
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