OCAWOil, Chemical & Atomic WorkersInternational Union, AFL-CIO

International Offices:255 Union Blvd., Lakewood, CO 80228303/987 -2229Mail: P.O. Box2812,Denver,CO 80201

BRITISH PETROLEUM AND ITS RECORD

IN SUPPORT OF APARTHEID IN SOUTH AFRICA AND NAMIBIA

****Opportunities for Action

This report was prepared by Richard W. Leonard at thedirection of the Oil, Chemical and Atomic Workers Union (OCAW).The OCAW is a Denver, Colo., based union representing over100,000 workers in the petroleum, energy, and chemical industriesin the United States. OCAW represents a number of BP workersincluding those at BP refineries and chemical plants at Toledoand Lima, Ohio, and at Marcus Hook (Philadelphia), Pennsylvania.

In February 1988; 940 workers at these three locationsstruck in protest over BP'g attempts to force concessions on itsworkers. The conflict at the Pennsylvania location has beenintensified by the racially motivated statements of localrefinery managers (see attached). Evidence of racism among localBP managers has prompted a broader inquiry into BP' s record onhuman rights, of which the attached report is a part.

Richard Leonard is a New York based consultant and writerspecializing on Southern Africa and other corporateresponsibility issues.

For further information, please contact Richard Leonard (norelation), OCAW Special Projects Coordinator at P.O. Box 2812,Denver, CO 80201; phone: 303-987-2229.

PRIMOS, PATIMES

D. 72,160-5. 63,616PHILADELPHIA METROPOLITAN AREA

Racial charges rock BP

Local union officialsprotest Iracist' offer

Affirmative action programs require allcompanies with federal contracts to setaside a percentage of jobs for minorities.

Kulinsky could not be reached for com­ment on the incident.

The company has proposed establishinga salary structure in its lab departmentunder which workers would be paid basedon their performance on skills tests.

'The local- the blacks and the whitesand the women - is totally up in armsover his comments," Stephana said.

No members of the negotiating teamsfor either the company or the union areblack.

BP employs 17 people in its lab._

Stephana.Affirmative action programs require

companies with federal contracts to setaside a specific number of jobs for womenand minorities. About half of theemployees in C&P are either black orfemale, Stephano said. .

Kulinski, however, defended b.iri1.self ina Jan. 18 memo posted on bulletin boardsthroughout the refinery.

"I am troubled ... by the union's charac­-terization of the company's position asracist," Kulinski wrote. "At no time have Ior any member of the company's negotiat­ing team made any comment either direct­ly or indirectly relating to race."

Kulinski, who could not be reached forcomment last night, said further in thememo that the union "'misrepresented"his comments.

By GERRY OLlVEK~ TOM FEENEY

Dail'( Times Staff WritelS

TRAINER - Striking black workers atBP's Marcus Hook Refmery yesterdaycharged plant Manager Edmund Kulinsldwith treating minorities unfairly..

Kulinski, who was unavailable for com­ment yesterday, has previously deniedsimilar charges.

Some 25 blacks, members ofLocal 8-234of the Oil, f;hemical and Atomic Workerswho've Deen on strike since Wednesday,briefed other black employees yesterdayon a meeting they held with Kulinski lastweek.

They said the meeting did little to allaytheir beliefs that minorities are mis­treated at the refinery.

Members of the union's negotiatingcommittee also. attended yesterday'smeeting and voiced sup~rt for the blacks'concerns.

Black workers requested the meetingwith Kulfuski after he was accused byunion leaders of making racist commentsduring a Jan. 14 negotiating session.

The union's negotiating committeewalked out of that session after Kulinskireportedly said affirmative action pro­gTaD18 have forced the company to hire"untrainable" workers in its Compoundand Packaging Department, according tounion Financial Secretary Denis

By TOM FEENEYDaily Times Staff Writer

TRAINER - Negotiators for Local8-234 of the Oil, Chemical and AtomicWorkers union walked out ofa bargainingsession last week after a BP Oil Co.official made what they described as a"racist appeal."

Ed Kulinsky, plant manager of BP'a .Marcus Hook Refinery, told the unionnegotiating committee a pay-for-skillsproposal offered by the company wasnecessary because affirmative action pro­~ had forced it to hire "untrainableworkers," according to union financialeec:retary Denis Stephano.

Black workers, however, said yesterdaythey have misgivings about more thanKulinski's comments to the negotiatingcommittee.

"There has been a history of nepotism,favoritism and manipulation at BP,"charged Douglas Anderson" a 15-yearemployee of the fmn who claimed he hadto seek help from· the government tobecome the company's first black certifiedwelder two years ago.

"I had to go to the EEOC (EqualEmployment Opportunity Commission)and file a charge before they would let metake the test," Anderson said. The com­pany required that he take specializedtraining but proVided little direction forhe and three other blacks in the course, hesaid. .

"I had to teach myself, now the training" classes are not required," he said.

Clarence ."Boo Johnson, one. of the, Stephano, who is white, chargedblacks who attended the meetmg last Kulinski h al lB' hite has d

k, 'd Kulinski 'd thin to ' w 0 so w, ma ewee 881 , 881 no g several innuendoes regarding' the learn-persuade the del~gation that the charges ing ability of blacks and the painleveled by the umon were untrue. threshold for women and blacks during

Company spokeswoman Elena Cocara contract negotiationS over the past six38id last night that the company has' a years. ." ,3trong record of employing blacks. She "VIe ~the umon) will obJ~, anytimesaid nearly a quarter of the 342 hourly Kulinski comes to the bargammg tableworkers at the plant are black. Moreover, and we won'~ stand for his ~uendoes,"she said, a special 28-man operations Stephano 881d., "We recogmze that weteam hired by Kulinski in 1984 was more cannot bar hin. from attendance atthan one-third black. bargaining sessions but we want manage-

ment to know that his racial overtones onbargaining matters will not be tolerated."

Stephano said Kulinski has attendedonly two of the 22 bargaining sessionsthus far but these have been hampered bymanagement's attempt to keep certainjobrates low because these jobs are con­sidered suitable only for people ofvery lowskills. He pointed out that a two-tieredwage system, applying lower wage ratesto workers in C&P, has been the subject ofconsiderable discussion.

Racial references concerning the unsuitability of employees in that depart­ment for promotion have plagued thebargainers, Stephano said. He L'lso saidcompany allegations of sick leave abusewere also race-related.

A number of instances of racial im­balance in employment and promotionpractices were outlined at the meetingyesterday.. For example, DorothyRaymond, a unit waste water worker inthe pumping department pointed out thatthere are no black supervisors among the42 workers there.

BRITISH PETROLEUM IN SOUTH AFRICA

British Petroleum Co. PLC (BP) is estimated to have $400million in direct investment in South Africa, making it thelargest United Kingdom investor there. South Africa is subjectto an international oil embargo (endorsed by a large majority ofcountries at the United Nations) because of the government'sapartheid policies. Because South Africa has no knownexploitable deposits of crude oil, BP plays a very strategic rolein supporting the government and" the economy.

Oil is so important to the South African regime that it isregarded as a munition of war. The secrecy surrounding the oilbusiness in South Africa is on the same level as that relating toarms and military equipment which are subject to an internationalarms embargo.

BP has been subject to wide protests because of its businessin South Africa, with a focus on the supply of petroleum productsto the South African military and police. BP has defended itsposition by arguing that it opposes apartheid and provides fundsfor projects to aid black South Africans.

A·new development is the recent move by Kuwait to increaseits holdings in BP to 21.28%, giving it a substantial share ofthe company. Kuwait, along with other oil-producing countries,has taken a strong position in support of the oil embargo againstSouth Africa. Kuwait has incorporated a clause in its contractswith oil buyers barring the supply of its oil to South Africa.Kuwait would seem to be in a position to exercise influence overBP's practices in South Africa.

BP's INTERESTS IN SOUTH AFRICA

BP's $400 million investment in South Africa includes itsmain subsidiary there, BP Southern Africa (pty.) Ltd., as well asother subsidiary and associated companies. BP has 4,900employees in its main South African subsidiaries, includingapproximately 2,000 white employees and 2,900 black employees.There are some 23,000 employees in all the companies in SouthAfrica and Namibia that BP holds interests in.

BP has described itself as "one of the largest industrialconcerns in South Africa." In 1985, the most recent figuresavailable, BP held approximately 14-16% of the South African oilmarket. BP has about 900 service stations and 75 petroleumdepots in South Africa.

BP holds 50% of South African Petroleum Refineries (pty.)Ptd. (Sapref), the country's largest refinery (Royal Dutch/Shellowns the other 50%). BP jointly owns the offshore receiving dock

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at Durban, where almost all the crude oil imported into SouthAfrica is discharged, along with Shell, Mobil, and the SouthAfrican government. Oil from this receiving point is piped tothe Sapref refinery. Trek Beleggings, a South African-controlledoil company with 4-6% of the market, is 17% owned by BP.

BP also owns 50% of Eikeboom Colliery (pty.) Ltd. and 89% ofMiddleburg Mine Services, another coal mine, as well as 25% ofCentral Chemical Investment (Pty.) Ltd. BP owns 12.5% ofSentrachem, the second largest chemical company in South Africa,and a 31% share of Unisel Gold Mines. BP's buy-out of StandardOil of Ohio has given it a 43% stake in Richards Bay Minerals, aswell as an interest in Richards Bay Iron and Titanium, whoseproducts have strategic value for South Africa's armamentsindustry.

A listing of BP's South African subsidiaries and otherinvestments in South Africa is given in the appendix.

BP: Fueling South Africa's Military Machine

The rule of apartheid is enforced by military and policepower and these highly mechanized forces depend on oil suppliedby BP and other maj or oil companies. The role of these forceshas been on display before the world during the state ofemergency imposed since 1985, typified by the "hippo:: armoredpersonnel carriers rumbling through black townships carryingheavily armed military and police. More than 2,000 people havebeen killed and 25,000 detained without trial for varying periodssince the emergency has been in force.

In February 1988 the South African government banned 17leading anti-apartheid organizations in the country from allpolitical activity, including the Congress of South African TradeUnions, the country's largest labor federation with 800,000members, most of the black workers.

Despite the United Nations' arms embargo imposed in 1977,South Africa has continued to build up its military forces andrelies on mobile, motorized forces using such equipment asarmored personnel carriers, armored cars, tanks, self-propelledand towed howitzers, mobile rocket launchers, landrovers,military trucks, and motorcycles. The South African Air Forceuses helicopters, jet fighter-bombers, light aircraft, and heavyair transports, while the Navy's main weapons are missile­carrying patrol boats and submarines.

All these forces depend on oil products, with BP animportant supplier. These are not forces that South Africa usesfor "show" -- they are actively involved in military and policeoperations inside and outside South Africa. The South Africangovernment not only enforces apartheid within the country, but

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has also carried out a campaign of regional aggression anddestabilization beyond its borders.

South Africa illegally occupies neighboring Namibia, whereit has been engaged for two decades in a counter-insurgency waragainst Namibians resisting its rule. From Namibia, South Africahas launched large-scale attacks into Angola and supports theforces of Unita fighting the Angolan government. South Africaalso backs surrogate forces in Mozambique which have beencarrying out a campaign of destruction and terror that has costhundreds of thousands of lives.

The Southern African Development Coordinating Conference(SADCC), made up of the countries neighboring South Africa,estimates that the region has suffered $30 billion in economiclosses in the 1980-86 period because of South Africa's campaignof aggression and destabilization.

There is no official information about the amount of oilused by the South African military and police; however, a 1985estimate is that it amounts to approximately 10% of total oilconsumption in South Africa and neighboring Namibia. This isabout 30,000 bid (barrels per day) and its current value would beapproximately $200 million annually. Since these estimates weremade in the mid-1980s, South Africa's military and policeoperations have intensified so that current consumption may behigher.

Since BP and other oil companies in South Africa areobligated under South African law to serve all customers, it maybe assumed that like its total market share, BP accounts forabout 14-16% of the oil products supplied to the military andpolice. The South African military and police forces use a widerange of petroleum products, including diesel fuel, gasoline,aviation gasoline, bunker fuel, and lubricants.

Business That Supports Apartheid

In addition to supplying the military and police, BP's otherbusiness in South Africa supports the government and the economy.Because South Africa must depend on imported oil and has largecoal reserves, most of the electric power for industry andhousehold use is generated by coal-fired plants. However, thetransport sector depends heavily on oil and accounts for about80% of the oil consumed in the country.

The South African government, which controls South AfricanTransport Services (SATS), plays a maj or role in the transportsector and is therefore a major consumer of oil products in thisarea. In addition, the private sector is heavily dependent onoil for its transport needs.

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Although South Africa has built three costly coalgasification plants, these are unable to supply more than 30-40%of the economy's needs and are also unable to supply diesel fuelthat is widely used by vehicles and engines in many sectors,including the military. Thus South Africa's dependence onimported oil and on BP and the other oil multinationals continuesto be significant.

Cooperation with the Apartheid Government

While BP claims to oppose apartheid, its operations inSouth Africa are under the control of the South Africangovernment and BP has cooperated with the government in order tocontinue its business there. This pattern goes back to theperiod 1965-1978 when BP and other oil companies set up varioussecret arrangements for the supply of oil to white-ruled Rhodesia(now independent Zimbabwe) despite the British and UN embargoagainst that country.

BP's South African subsidiaries are subject to several SouthAfrican laws which empower the government to order them to supplygoods and services and to keep this secret, even from BP'scorporate headquarters in London. Among these laws are theDefense Act, the Price Control Act, the National Supplies andProcurement Act, and the Petroleum Products Act.

Also, under the National Key Points Act (which was passed in1980 after a guerrilla attack on two coal gasification facilitiescaused $4 million in damages) the government can now ordercompanies to set up militias and other security systems in theirfacilities according to guidelines of the South African militaryin order to assure their continued operation during emergencies.The act was amended in 1985 to allow companies to cooperate inthe establishment of defenses, with parliamentary debatesindicating that this was done to accommodate BP and other oilcompanies with facilities concentrated near Durban.

Other evidence of the South African government's power overcorporate subsidiaries is a 1977 memo from the South AfricanCommerce Department to Mobil Oil headquarters in New York citingan "official directive" from the South African government to oilcompanies that they may put no restrictions on resale ordistribution of their products in South Africa (meaning that themilitary and police must be supplied).

In other cases, oil companies have invoked the PetroleumProducts Act in refusing to provide shareholders with informationabout their sales to the South African government.

BP and other multinationals also support apartheid throughtaxes paid to the South African government. The current tax rateon profits is 50% of taxable income. BP and other companies

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withhold information on profits and taxes in South Africa, butsince BP is the largest UK investor in South Africa, the taxes itpays there are clearly sizeable.

Oil to South Africa: Clandestine Trade

Because of the oil embargoes against South Africa passed bythe United Nations, OPEC, and OAPEC (Organization of ArabPetroleum Exporting Countries) no oil-producing country permitsits oil to be supplied to South Africa. This secret trade ishandled by international oil traders and shippers and hasinvolved a number of illegal and fraudulent practices, such asfalsification of shipping documents and ships' logs, setting updummy companies, and even the scuttling of oil tankers to try todisguise trade with South Africa. The magnitude of thisfraudulent business is such that some $3 billion in oil annually"disappears" from world petroleum shipping statistics, ending upin South Africa, according to the Shipping Research Bureau.

When oil from Iran to South Africa was cut off after thefall of the Shah in 1978, the South African government begancompensating BP and other oil companies for the extra costs ofbreaking the international embargo to import oil, according to asecret 1984 report by the South African Advocate-General. In1980, BP and the other importers were paid an additional $8 perbarrel by the government fo~ their imports.

During 1981-82, with the oil companies under growinginternational pressure, (Nigeria had expropriated BP's subsidiarythere because of BP's trade with Rhodesia), the import of oil toSouth Africa was taken over by the South African government. BPand the other multinationals involved in the industry in SouthAfrica now claim no knowledge of this secret and illegalbusiness. Nonetheless, investigations by the Shipping ResearchBureau have indicated that Shell played a major role in thistrade up until 1981, with BP also cited in connection with twotanker shipments during this period.

More recently, oil owned by BP loaded in the United ArabEmirates was reported by the Shipping Research Bureau to havereached South Africa on the ship Patriotic in April 1987. Theship is under Panamanian registry and Greek ownership. This casehas been brought to the attention of the united NationsIntergovernmental Group to Monitor the Supply and Shipping ofPetroleum Products to South Africa, which was formed in 1986.This United Nations group reached no conclusions concerning thisand other cases mentioned in its report of November 5, 1987, butnoted that although small trading companies and middlemen havebeen cited as main violators of the embargo, the role of themajor oil companies "cannot be underestimated." The reportstates that "Both BP and Shell are reported to be activelyinvolved in oil imports to South Africa."

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Whatever BP's knowledge of and role in the supply of oil toSouth Africa, much of these imports, involving oil obtainedthrough secret and illegal practices, is brought by BP, goesdirectly to the BP - Shell refinery, and is marketed by BP inSouth Africa and Namibia.

Coal: Earning Foreign Exchange

BP's support for the South African government is also shownby its role in the coal industry. After the fall of the Shah ofIran in 1978, South Africa had relied more on the cooperation ofthe oil multinationals in obtaining imports of crude oil. As anincentive to maintain this cooperation, the South Africangovernment gave BP, as well as Shell and Total, coal exportquotas, with the condition, in the words of South Africa'sMinister for Economic Affairs Chris Heunis in 1979, that "theycontinue to fulfill their obligations in supplying petroleum fuelto this country." BP was granted 12.5% of the total quota andalso played a key role in developing the infrastructure atRichards Bay needed for large-scale coal exports, owning 12.5%interest in the terminal there.

With world oil prices at high levels, demand for coalincreased and became an important export for South Africa. In1986, coal accounted for 10% of South Africa's total exportearnings, approximately $f.6 billion with 45.5 million tons.Under the quota arrangement, BP' s share of this would be 5.7million tons worth some $200 million. The demand for coal hasslipped somewhat with the fall in oil prices, however.

BP's main coal mining investment is a 89.13% interest in theMiddleburg colliery, an open cast mine, rated as one of thecheapest producers in the industry there. BP is reportedlyplanning to raise coal production at Middleburg from 4.5 milliontons in 1987 to 5 million tons in 1988. In 1987, BP withdrewfrom a joint venture in the Ermelo colliery, an underground minewith higher production costs. BP also owns 50% of the Eikeboomcolliery, which has supplied only the domestic market.

Coal imports to the European Community have been a majorissue and BP has been directly involved. In 1987, the MinersInternational Federation (MIF), the International Confederationof Free Trade Unions (ICFTU) and the European Trade UnionConfederation (ETUC) called on EC ministers to ban South Africancoal imports. The CISL, Italy's trade union confederation,threatened action against the state-owned power company, ENEL(the largest EC buyer of South African coal) unless the importsare stopped. In 1986 ENEL signed an agreement with BP and Gencorto supply 500,000 tons of South African coal apiece in 1987.

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BP in Namibia

BP, through its affiliate BP South West -- Namibia Ltd.,supplies oil to Namibia, which remains under the occupation ofSouth Africa. This means that BP supplies not only thecommercial sector, but also South Africa's extensive militaryinfrastructure there. BP' s role also aids the economic andadministrative structure of South Africa's occupation, which hasbeen declared illegal under international law. Also, companiesin the mining sector use petroleum products for their operations,which violate United Nations Decree No. 1 barring theexploitation of Namibian resources without authorization of theUnited Nations, which is the legal authority in Namibia.

BP itself has a role in the Namibian mining sector as aresult of its purchase of Selection Trust of the UK in 1980.Selection Trust has a 14.25% interest in the Tsumeb Corporation,which operates the Tsumeb mine in Namibia. Tsumeb is a majorproducer of base metals for the international market and is thelargest single employer in the territory, with more than 4,000employees, mainly migrant workers. As noted below, Tsumeb has areputation of being the worst employer in Namibia.

Labor Relations in South Africa and Namibia

BP has peen among UK companies cited as paying blackemployees below the poverty level, despite the European Communitycode of conduct calling for corporations in South Africa to payabove this minimum. The workers involved are apparently in thecoal mining sector. In 1986 BP said that the workers cited werebeing. provided with housing, food and other benefits, althoughthe South African university monitoring wage scales noted thatits calculations of minimum pay levels include these elements.

BP was criticized for inadequate mine safety after anaccident at the Ermelo coal mine in 1987. BP subsequently soldits holding in the mine.

Also in 1987, 4,000 migrant workers, many members of theMineworkers Union of Namibia, struck the Tsumeb mine in Namibiain protest against poor conditions and South Africa's continuingwar of occupation there. The management crushed the strike,firing all the workers involved and later allowing only partialrehiring. BP, with a 14.25% stake in Tsumeb through SelectionTrust, claimed it opposed the firings, but said it was a "wildcatstrike" and the company could have no influence in ending the war(despite BP' s own strategic role in supplying oil to the SouthAfrican occupiers).

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BP Defends Its South African Business

Because of intense criticism about its role in South Africa,BP, like other corporations defending their business there, hasargued that sanctions would be ineffective and that it opposesapartheid. BP has carried out social programs in South Africasince 1977 and issues glossy reports describing such activities,including endorsements by black South Africans who opposesanctions. But BP does not discuss South Africa's vulnerabilityto a cutoff of oil, its role in fueling the military and police,and the laws which enforce cooperation with the South Africangovernment and secrecy about its operations there.

In 1986 BP announced that it would launch two socialprograms in South Africa: $25 million to build nonracial housingin District Six in Cape Town, which had been cleared out by thegovernment, and $25 million to support schools admitting blackstudents that stood to lose government subsidies. These plansran into considerable criticism from prominent black leaders,however, among them the COSATU, the UDF, and the Chemical WorkersInternational Union. A chemical workers' representative said BPcould spend more money on its own workers; another indicated thatmost black workers couldn't afford to live in a new, middle-classarea like that proposed by BP nor send their children to privateschools aided by BP. Major black community groups and unions hadnot been consulted about the projects.

A UDF representative said that these programs do not reallychallenge apartheid and that BP and other corporations have themuscle to put real pressure on the government if they wanted to.A COSATU leader said the impetus for these programs is to evadepressures against the corporations, and another charged that bigcorporations act like the government in carrying out suchprograms: "undemocratically, unilaterally, and based on theirown assumptions."

On the other hand, in a form letter sent out by the SouthAfrican Embassy in London in 1986, the South Africa Minister ofInformation cited press articles on the programs as indicating"the benefits of continued investment by BP and the negativeconsequences of disinvestment."

KUWAIT'S NEW HOLDINGS IN BPAN OPPORTUNITY FOR ACTION

Recently, Kuwait has increased its holdings in BP to 21.28%.making it by far the largest single shareholder. It is alsoreported that Kuwait may seek to increase its stake to 25% oreven 29.5% (at 30% they would have to bid for the whole company).

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Kuwait's interest in BP is curious to say the least. It hasbeen pointed out that perhaps 20 percent of the Kuwait InvestmentOffice's international portfolio is tied up in BP and consideringthis degree of commitment, one would expect Kuwait to want morethan regular dividends. Three possible scenarios include (1) ademand for Board representation and, more importantly, a directrole in management; (2) a sell-off to a third party havingpredatory intentions; or (3) an auction scenario calculated toprovoke British nationalism and extract some sort of greenmailtype dividend.

The Thatcher Government in its desire to "privatize" BP cameunder severe criticism for having unwittingly allowed asubstantial portion of its holdings in this company to fall intothe hands of foreign interests. As such, the Thatcher Governmentand BP are thought to be strongly opposed to any of thesescenarios. At this time, Kuwait may be reluctant to depart withany of its holdings preferring an improved market for BP shares

It is also curious that Kuwait has taken positions incompanies (BP and Daimler Benz, for example) that are countedamong the most prominent collaborators with the South Africanregime. It is even more curious considering Kuwait's statedopposition to this regime and to the export of crude oil to theregion.

For example, Kuwait, . in common with other oil producingstates, has barred the export of its oil to South Africa. It hasalso supported resolutions at the United Nations and by OPEC andOAPEC calling on international oil companies, as well as shippingand trading companies, to end their business with South Africa.Since 1976 there have been resolutions passed annually by the UNGeneral Assembly supporting the oil embargo against South Africa.Concerning oil companies, they have called on governments toprohibit corporations from supplying oil to South Africa and toprohibit investments in the petroleum industry of South Africa.

Kuwait has recently taken a more visible position on theissue, with its representative serving as vice chair of theIntergovernmental Group to Monitor the Supply and Shipping ofPetroleum Products to South Africa at the United Nations, whichwas established in 1986. The most recent UN General Assemblyresolution on the oil embargo, passed on November 20, 1987 andsupported by Kuwait, includes the request that all states adopteffective measures and/or legislation to broaden the scope of theoil embargo through various means.

The basis for Kuwait's position is its opposition to SouthAfrica's apartheid policies of legalized racism. While it is notknown how much thought Kuwait may have given to this apparentcontradiction, they may be inclined to give it some attention ifKuwait were to become the target of appeal by prominent anti-

9

apartheid advocacy groups and individuals operating through theU.N. and channels within OPEC and various Arab unity or otherregional organizations.

Apartheid is a major global issue and the oil embargo hasbecome a focus of international pressure against South Africa.Because of its new stake in BP, Kuwait is bound to come underincreasing scrutiny and pressure to take steps to make the oilembargo more effective. Generally, oil producing countries suchas Kuwait have put the onus for embargo violations on oil tradersand shippers, but have not really taken effective steps topenalize such operators for their role. Now, however, in owninga major share of BP, Kuwait is in a different position, with realinfluence within one of the key oil multinationals operating inSouth Africa.

Regarding Kuwait's influence within BP, despite its largeinterest, it may not, as a foreign country, want to rock the boatexcessively within a major British institution. However, as thelargest shareholder whose stake may increase further, Kuwait islikely to want a real voice in determining policy. BP has beenunder strong pressure, both within the UK and internationally, toend its business in South Africa. This seems likely to increasebecause of Kuwait's new position as the major shareholder.

OTHER OPPORTUNITIES FOR ACTION

With the purchase of 100 percent of the shares of StandardOil Company (SOHIO) in 1987, BP has become highly visible inNorth America. BP is now sole owner of over 50 percent of theoil reserves of the giant Prudhoe Bay field on the North Slope ofAlaska as well as substantial oil and gas fields on and off-shorein the lower 48 states. It also finds itself sole owner of fourlarge oil refineries in Louisiana, Ohio (2), and Pennsylvania,over 7,000 retail outlets in 29 states, several chemical plants,Kennecott Copper Corp. (copper, lead, zinc) and nine coal mines(Old Ben Coal). BP North America, with $16 billion in assets and40,000 employees, will be headquartered in Cleveland.

Recently, BP announced that it will be consolidating itsSouth African coal business with its Old Ben Coal subsidiary inthe U. S. It also announced that it will be headquartering itsworldwide coal business not in London, but at its Clevelandoffices. Thus, the business of apartheid for this company isclearly established on North American soil.

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Appendix I

BP Subsidiary and Associated Companies in South Africa

BP Southern Africa (pty.) Ltd. (100%)

South African Petroleum Refineries (pty.) Ltd. (50%)

Eikeboom Colliery (Pty.) Ltd. (50%)

Middleburg Mine Services (89.13%)

African Selection Trust Exploration (pty.) Ltd. (100%)

S.A. Lubricants Manufacturing Co. (pty.) Ltd. (25%)

Central Chemical Investment (pty.) Ltd. (25%)

Richards Bay Minerals (43%)

Richards Bay Iron and Titanium (pty.) Ltd.

Tisand (Pty.) Ltd.

Carborundum-Universal S.A. (pty.) Ltd. (50%)

Other BP Investmen~s in South Africa and Namibia

Trek Beleggings (17%)Richards Bay Coal Terminal (12.5%)Chemico (15%)Sentrachem (12.5%)Unisel Gold Mines (31%)BP South West-Namibia Ltd.Tsumeb Corporation (Namibia) (14.25%)Midwest Properties No. 207 (Pty.) Ltd. (15%)Midwest Properties No. 208 (Pty.) Ltd. (15%)Tabro Investments & Chamdor (pty.) Ltd. (15%)Semco Lubricants & Chemicals (Pty.) Ltd. (15%)Overburg Industrial Lubricants (pty.) Ltd. (15%)CarburolOil (Pty.) Ltd. (15%)

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Appendix II

Concerned Organizations

There are dozens of organizations on the national andinternational level concerned about the oil embargo against SouthAfrica and the role of major corporations such as BP there.There is at present an international boycott against Shell Oilbecause of its role in South Africa, particularly in supplyingoil to South Africa. It would be important to coordinate withgroups focusing on Shell. Clearly, BP will also continue to comeunder protest because of its South African business. Among theorganizations concerned about these issues are:

UN Special Committee Against Apartheid

UN Intergovernmental Group to Monitor the Supply andShipping of Petroleum Products to South Africa

UN Centre on Transnational Corporations

Organization of African Unity

OPEC

OAPEC

SADCC

Commonwealth Secretariat

Association of European Parliamentarians Against Apartheid

ICFTU

ETUC

ICEF

ITF

MIF

AFL-CIO

World Council of Churches

Catholic Institute for International Relations (UK)

Christian Concern for Southern Africa (UK)

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· . ~

International Defense and Aid Fund (UK)

Anti-Apartheid Movement (UK)

Shipping Research Bureau (Netherlands)

Kairos (Netherlands)

Holland Committee on Southern Africa

National Council of Churches (US)

Interfaith Center on Corporate Responsibility (US)

American Committee on Africa

United Mine Workers of America

TransAfrica

American Friends Service Committee

Congressional Black Caucus

Washington Office on Africa

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