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SAPREF’S 2006 SUSTAINABILITY REPORT LAUNCH

22 JUNE 2007

SAPREF today (22 June) released its annual report to stakeholders entitled “Sustainability In Focus”.

For the last six years SAPREF has provided verified information on its operational, economic, environmental and social performance.

MD Wayne Pearce explained “Our business strategies are focused on the three components necessary for a sustainable business (economic, environmental and social) and our business processes require that we set objectives, and report and review performance regularly. Our annual report is an extension of this philosophy and our commitment to openness. This report highlights progress in 2006, as well as the areas where we need to do more and also recognizes the challenges facing our business. ”

The report details the following: :

  • SAPREF’s objective for 2006 was to keep emissions below 20 tons per day on average for the year. The actual rate was 11 tons a day on average. This is attributable to the decrease in production for the year due to a major shutdown year.
  • There was an 18% drop in volatile organic compound emissions to 3528.7 tons. This is attributable to the decrease in production for the year.
  • SAPREF achieved 8 million safe hours worked without a lost time injury as well as one million hours without a recordable injury.
  • Following an earlier decision to replace all seven underground product transfer lines between the refinery and the harbour, about 15 km of new piping was laid: this is equal to about 3 km of the 12km route.
  • SAPREF and shareholder BP joined forces with the KwaZulu-Natal Education Department to establish a R200 000 science laboratory at the Zwelihle High School in neighbouring Umlazi. The laboratory will benefit about 1000 learners from 10 high schools.
  • In response to a proposal from the Environmental Task Team of the SAPREF Community Liaison Forum, a project to ‘green’ the refinery entrance was begun; similarly the painting of stacks. The Social Task Team proposed three projects which were supported: the development of soccer at nine schools in Durban South, training for community groups who work with issues of violence against women, and the development of a database for the unemployed. Total spend on social responsibility was R5.5 million.
  • During the shutdown, 832 of the contract workers were drawn from our neighbouring areas.
  • Forty percent of SAPREF’s discretionary spend went to companies with 25.1% or more BEE shareholding, up from 23.7% in 2005. The target was 30 percent.
  • The remediation continued of the site where a leak of petrol occurred in 2001. As no free petrol was detected in the ground between the months of April to June, the extraction process was terminated.

    “2006 was a trying year where we faced some difficult challenges particularly around improving the reliability of the refinery but I am pleased that the team has demonstrated it can pull together. I am also pleased with the ongoing developments in the Community Liaison Forum whose members identified many rewarding social investment initiatives. I would like to thank community members and other stakeholders who are making a valuable contribution in our improvement journey. We recognise that there is it still much to do,” said Pearce. “And we welcome comments on the report.”

    Note to Editors: The SAPREF crude oil refinery is a 50/50 joint venture between Shell South Africa Energy and BP Southern Africa. SAPREF is southern Africa’s largest crude oil refinery, with 35 percent of the country’s refining capacity. This equates to 180 000 barrels of crude oil per day or 8.5 million tons per year. SAPREF’s facilities comprise a single buoy mooring through which 80 percent of South Africa’s crude oil is imported, a storage facility at the Durban harbour, joint bunkering services and the refinery itself, which is located in Prospecton. The refinery has been operating since 1963.

    For further information please contact:
    Prudence Mbatha Communications Officer SAPREF
    Tel: (031) 480 1303
    Fax: (031) 468 1111
    mbathap@sapref.com