Skills Development in the Petroleum Industry The South African Petroleum Industry Association 11 September 2012

Outline Introduction Overview of the hydrocarbon sector (focusing on petroleum industry) Own training and development programmes Conclusion

Introduction People business based on know-how Transition period diversity of talent complex activity set operational excellence Transition period new generation high investment talent pipeline lagging Need to respond collectively Industry, Government, Universities

Overview of the petroleum industry Product import Storage Road tanker Refinery Tank farm Storage Transnet Pipeline DJP&NMPP Refineries SBM Crude Oil import Rail Storage Depots Consumer Retail stations Road tanker Commercial customers Retail station tank

Overview of the petroleum industry The SA petroleum industry accounts for: 6.48% contribution to the national GDP; >100 000 jobs (direct and indirect); R217-billion p.a. in turnover; R43-billion p.a. in duties and levies; R5-billion p.a. in capital expenditure; R5-billion p.a. in annual payroll; R1-billion p.a. in income tax; R340-million on CSI projects in 2011

Scarce skills and critical skills gaps SAPIA industry review findings: Lack of petroleum industry experience; Scarcity of suitably qualified and experienced employment equity candidates (specifically black women); Need to recruit people with petroleum industry- specific knowledge; Need to up-skill existing employees

Technical and professional skills are highest in demand in the petroleum industry

Occupationally-directed learning programmes and institutional qualifications programmes with theoretical and practical workplace application is most required to meet future needs

Learning interventions Oil, Gas and Chemical Manufacturing Companies Artisan Skills Training Project At the end of 2010, 1 215 artisans and process operators qualified and another 106 were completing training for qualification in mid 2011.To date, the company’s contribution to increasing the availability of skilled and qualified artisans and process operators, resulted in a R263-million investment. Jointly funded by companies and the Chemical Industries Education and Training Authority (CHIETA). Leadership in Oil and Energy Certificate Programme Successfully implemented from 2006-2011 the Leadership in Oil and Energy (LOE) Certificate Programme. 348 industry employees graduated from the programme mostly black people and women.

Learning interventions Women in Leadership Programme Launched in August 2012. Approximately 40 industry women have enrolled to the programme. Aimed at talented women in management positions with a proven track record. This includes middle managers with high potential who need to move to the next level of management (manager of others or manager of managers) and technical specialists. Learning opportunity for women who want exposure to the necessary skills and experiences to navigate through an increasing complex and competitive fast changing global landscape within the petroleum industry. Advanced Certificate in Management for Oil and Gas To be launched early 2013 Aimed at Middle Managers making a transition to Senior Managers and who require specialist knowledge in the oil and Gas Industry.

Future learning interventions Explore creation of a Petroleum Institute for South Africa From Artisan to PHD Industry learning pathway developed Leveraging existing FET; University of Technology; University Partnership between Industry (SAPIA), Government (CHIETA, Research Chair) and University (WITS)

Conclusion Demand for Oil & Gas will keep growing and the SADC region is full of resources. The primary limiting factor is the availability of adequate skills It is critical to work together to develop a large and focused Oil & Gas talent pool for the region

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