ENGEN REFINERIES

ENGEN STAYS AT THE CUTTING EDGE
The Engen Refinery at Wentworth, South Durban, was South Africa's first crude oil refinery when it was commissioned and has remained at the forefront of the country's petroleum industry ever since. Today it injects approximately R1.5 billion into the South Durban Basin and Durban economies each year.

Although the refinery has been in existence since 1954, there has been significant capital investment in new processing units, rebuilds and upgrades in the intervening years. New units and processes have been added to increase crude throughput, yields, processing efficiency and product quality, whilst at the same time meeting increasingly stringent environmental standards. The net result is that the average age of the refinery processing units is about 25 years, the piping less than that and the process control facilities a little over ten-years old. The only functional remains of the original facility are the sewer systems.

The Engen Refinery is at the forefront of the country's programme to produce more environmentally friendly fuels. It is also acutely aware of the environmental impact of its production processes - in fact it was the first company in the country to negotiate five year schedule trade and effluent permits, which comply with all current applicable national legislation.

The company has closely monitored environmental issues over the past decade. At the refinery this has translated into, on average a R60 million annual capital expenditure on new and upgraded environmental processing facilities. This is matched by improved management systems, procedures and protocols-such as ISO14001 compliance - all aimed at minimising its environmental footprint in a structured and documented basis.

Initiatives undertaken by the refinery include the implementation of a ground-breaking waste management programme that not only seeks more efficient and sustainable alternatives to landfill, but also ensures effective monitoring, tracking and documentation of the entire waste cycle - from the moment it is generated on site to its final disposal.

Today, the refinery has the nominal capacity to refine 125 000 barrels of crude oil/ day to the current Clean Fuels Standards, substantially reducing the country's dependence on imported refined products - which results in substantial foreign exchange savings.

Engen's core business is the refining of crude oil, the marketing of primary refined petroleum products and the provision of convenience services. Products include a wide range of petroleum products, lubricants, gases and chemicals. The Engen refinery has a proud history of growth combined with technical excellence, all designed to ensure that production matches the needs of a changingmarket place and increasing demands for better products.

THE PROCESS CONTROL CENTRE
The refinery boasts a sophisticated state-of-the art computerised Process Control Centre (PCC) from which dedicated highly trained and skilled technicians maintain fingertip control of the refinery operations 24/7.

SAFETY
The Engen Refinery prides itself as much on its Safety policies as it does in its plant. The organisation refuses to compromise on its high standards and rigid systems are applied equally to all who work at the refinery.

The safety culture is based on the DuPont STOP (Safety Training Observation Programme) for Safety package that hinges on the concept of "Be your Brother's Keeper". Every employee and core contractor receives detailed training in using STOP to observe colleagues at work and to provide constructive comment to promote safe working habits. Since the introduction of STOP at the end of 1999, safety performance statistics have improved dramatically and continue to improve.

A RESPONSIBLE CORPORATE CITIZEN
The Engen Refinery is a good corporate citizen and contributes millions of rands each year in cash and support towards the sustainable social upliftment of its neighbours. Much of this effort is focused on socio-economic development, particularly with the sponsorship of educational projects.

The flagship project over the years has been the refinery's supplementary education programme; The Engen Saturday School in Fairvale (for grades eight to ten) and the Engen Maths and Science School in Umlazi for grade 12 pupils; in preparation for final year examinations. In the 2010 school year, 89 Umlazi project participants and 46 Fairvale project learners achieved one or more matric distinctions (A or B symbols) in the tutored subjects.

Other sustainable corporate social investment projects supported by Engen include:

• The Wentworth and Merebank Education Trusts, established with refinery seed capital, use dividends from investments to fund educational projects
• Early childhood training through a programme involving training for pre-school teachers in Umlazi, Wentworth, Merebank and the surrounding areas
• Engen Community Computer Training Centre which enables members of the Durban South Basin community to obtain basic computer skills which enhance their employment prospects

COMMUNITY LIAISON
Over the years, as environmental debates have developed, Engen has actively engaged with its neighbours on environmental issues. It does this through the Engen Community Liaison Forum (CLF) comprising representatives of Engen and NGOs representing a broad spectrum of community interests. The refinery remains committed to pursuing this path of community consultation and participation.

Engen management remains committed to minimising the refinery's impact on the environment and to continually engaging with its neighbouring communities to promote harmonious co-existence. This commitment has been evidenced through the substantial reduction in volatile organic compounds (VOCs), such as benzene, and the reduction by more than 60%of sulphur dioxide (SO2) emissions since 1998. During 2010 the refinery received five environmental awards; two internal awards fromparent company PETRONAS, two KwaZulu-Natal waste management awards and one from the National Association for Clean Air in recognition of progress made in its environmental performance.

CONCLUSION
Overall, Engen recognises that as one of Durban's major businesses and employers, it also has an important role to play in regional economic growth and development. Empowerment for growth and value creation has never been more important. The business environment will continue to provide us with challenges, but Engen is confident that it has the necessary resources - its people - to sustain its growth into the future.

Nature of Business: Manufacturing Division of Engen Petroleum Limited
Products / Services: Refining crude oil to manufacture a wide range of petroleumproducts including hydrocarbon fuels, lube base oil feedstock, liquid petroleum gases, bunker fuel oil, asphalt and aromatic & aliphatic solvents
Holding Company: Engen Limited
Shareholders of Engen Limited: Petroliam Nasional Berhad (PETRONAS) and Worldwide African Investment Holdings (Pty) Limited (WAIH)
Date Established: 1954
Annual Turnover: R 17 billion to R 24 billion depending on crude price
Value of Fixed Assets: R10 billion replacement value
Main Equipment: Distillation towers, furnaces, reactors, pumps and compressors
Site Area (m²): 1218331 m²
Ownership of Land: Engen
Industrial Standards: ISO 9001 and ISO 14001
No. of Employees: 800 Permanent Employees
Brief Description of Production Process: Complex, high conversion crude oil refinery
Raw Materials Employed: Crude oil

KEY PERSONNEL
General Manager: Kamal Bahrin Ahmad
Executive Assistant to General Manager: Preeshne Naidoo

CONTACT DETAILS
Physical Address: 465 Tara Road,Wentworth, Durban
Postal Address: P.O. Box 956, Durban, 4000
Tel: +27 (0)31 460 3911
Fax: +27 (0)31 460 3000
E-mail: Herb.Payne@engenoil.com
Website: http://www.engen.co.za