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Producing Cleaner Fuels
SAPREF located at Prospecton is a 50/50 joint venture between energy multinationals, Shell SA Energy and BP SouthernAfrica. SAPREF is the largest crude oil refinery in sub-SaharanAfrica and produces about 30 percent of South Africa's petrol and makes a variety of other petroleum products. The refinery has been in operation for 45 years.
SAPREF's facilities are of national strategic importance. They include the refinery in the South Durban Basin, storage facilities in the harbour at IslandView, a single buoy mooring (SBM) where tankers offload about 80 percent of South Africa's crude oil imports and the joint bunkering services operated on behalf of various petroleum companies. In a deal worth some USD 75 million over five years, two BEE barge operators are to take over the supply of bunker fuel to ships in the port of Durban for SAPREF. Presently about 60% of bunker fuel is supplied by pipeline in the port and the contracts will enable a move to full bunker barge delivery.This follows previous notification from the National Port Authority and South African Port Operator (NPA/ SAPO) that the use of pipelines for delivering bunkers in the Container Terminal and New Pier would cease.
Smit Amandla Marine (Pty) Ltd and Unicorn Calulo Bunker Services (Pty) Ltd were the successful bidders and will provide barges to supply ships with bunker fuel in the port of Durban. SAPREF will manage the contracts on behalf of BP, Shell and Engen and will supply about two million metric tons of bunker fuel per year to ships in Durban.
Other benefits emanating from themove to full bunker barge delivery are the improved ability to manage safety and environmental risks during bunkering, and improvement in the rate of delivery of bunkers. Additionally, the new barges will fulfil the MARPOL Annex I requirement for double hull barges for bunker fuel delivery. MARPOL (regulations legislated by the International Maritime Organisation) provides regulation for the phasing out of single hull tankers carrying fuel oil.
Products
SAPREF makes 10 main products in 46 different grades.The refinery's products include:
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petrol;
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paraffin;
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diesel;
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solvents;
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jet fuel;
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bitumen;
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lubricating oil;
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liquid petroleum gas;
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marine fuel oil; and
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chemical feed stocks.
Cleaner Fuels
SAPREF started producing 100% unleaded petrol and diesel with a lower sulphur content on 1 December 2005, a month ahead of the 1 January 2006 SA government deadline for all refineries to phase out the use of lead in petrol and lower the sulphur content in diesel. A positive environmental impact from SAPREF-produced fuels alone, means there will be a reduction of about 2 000 tonnes annually of lead additive and 15 000 tonnes of sulphur dioxide annually being emitted through vehicle exhausts. In addition, SAPREF chose not to replace lead with other octane boosting additives, rather achieving the high octane requirements through further refining of petrol components.According to the International Project Association, on completion the projects safety statistics were three times better than similar global projects and six times better than the average SouthAfrican project in the petrochemical industry. In addition, the project met its BEE procurement targets and company requirements for employing people from areas closest to SAPREF.
Environment
Over the past 12 years SAPREF has spent more than R590 million on initiatives to enhance environmental performance, air quality improvement being a large part of that effort.
Among some of the initiatives embarked on is the conversion from using heavy oil to fuel gas in the furnaces which in turn has reduced smoke and sulphur dioxide emissions.
In 2002 SAPREF completed construction of a new sulphur recovery unit and off-gas treating unit, a R350 million project which reduced sulphur dioxide emissions by 45%.
As a signal of a commitment to improve air quality in the south Durban basin SAPREF is also an active participant in the south Durban Multi-Point Plan which was spearheaded by former Environmental Affairs and Tourism MinisterValli Moosa to address air pollution concerns in the area.The plan involves devising an air quality management plan and conducting health studies to investigate any impact of pollution on health. SAPREF contributed R1.85 million towards this exercise and has representation on steering committees for the health study and network monitoring and air quality management initiatives. The plan gives scientific evidence of the nature and sources of pollution in south Durban and provides a fair basis for improvement. SAPREF operates at a self imposed emission limit for sulphur dioxide emissions of 20 tonnes per day.
Development of People
SAPREF annually offers production and engineering learnerships, providing training beyond its own business requirements.Through bursaries and education assistance SAPREF provides opportunities for previously disadvantaged South Africans to improve their education and to resource the business with future talent.
HIV/AIDS
The Province in which SAPREF operates is reputed to have the highest prevalence of HIV/ Aids in the world. SAPREF has a programme of voluntary confidential counselling and treatment for its staff and their families.Management of the programme is outsourced.
Black Economic Empowerment (BEE)
BEE is a key focus area. Performance in this area is based on a balanced scorecard and covers the areas of contracting, procurement, employment equity and social investment.
Social Responsibility
The social responsibility programme is focused on several education initiatives, including bursaries, learnerships and vacation work. Social investment is made in neighbouring communities.
SAPREF and BP joined forces in 2006 with the KwaZulu-Natal Education Department to establish a R200 000 science laboratory at the Zwelihle High School in neighbouring Umlazi. The laboratory will be used by 10 high schools in the area, benefitting about 1000 learners.An existing laboratory was completely refurbished and equipped with science kits and equipment, as well as eight computers. In 2004 a similar laboratory was established in Lamontville. SAPREF, as a maths-and science- related company,was pleased to assist in providing better science education to facilitate the advancement of children into oil-sector careers.
Community Liaison
The SAPREF Community Liaison Forum was fully established in 2004. Comprising a number of community representatives and local authorities, the forum meets monthly to talk about environmental and social issues that are of importance to the community. The general approach is to find mutually acceptable solutions to these challenges through constructive discussion and debate.
Full Name of Company: Shell & BP South African Petroleum Refineries (Pty) Ltd
Nature of Business: Manufacturer of petroleum products.
Services / Products: Refining crude oil, operating single buoy mooring, storage facilities and Joint Bunkering Services.
Date Established: 1963
No. of Employees: 606
Auditors / Accountants: Ernst & Young
Bankers: Standard Bank
KEY PERSONNEL
Managing Director: Ton Wielers
CONTACT DETAILS
Physical Address: 1 Refinery Road, Prospecton, Durban, 4001.
Postal Address: PO Box 3179, Durban, 4000, South Africa.
Tel: + 27 (0)31 480 1911
Fax: + 27 (0)31 468 1913
E-mail: public@sapref.com
Website: http://www.sapref.com
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