CHAMBER: PETROLEUM AND BASE CHEMICALSSUBSECTOR: PETROLEUM

MARCH 2014

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Please Note:

The CHIETA developed subsector skills plans for the first time in 2013/2014, to achieve the mandate of the Chambers in terms of schedule 9(a) of the SDA 97 of 1998; to consult with the 9 sub-sectors of the Chemical Sector in areas of skills development and planning. The objective of such consultation is to compile a SSP for the sector that takes into consideration areas of skills demand, and skills supply.

The CHIETA subsector skills plans are a great start but will continue to be strengthened going forward as work in progress with particular emphasis on detailed planning.

TABLE OF CONTENTS

1 INTRODUCTION.............................................................................................................................1

1.1 BACKGROUND........................................................................................................................1

1.2 FORMAT OF THE SUBSECTOR SKILLS PLAN............................................................................1

1.3 SCOPE OF THE SUBSECTOR....................................................................................................2

1.3.1 MANUFACTURE OF COKE OVEN PRODUCTS..................................................................2

1.3.2 PETROLEUM REFINERIES................................................................................................3

1.3.3 SYNTHETIC FUELS PRODUCTION – GTL..........................................................................4

1.3.4 WHOLESALE TRADE IN SOLID, LIQUID AND GASEOUS FUELS AND RELATED PRODUCTS4

1.3.5 INDUSTRIAL RESEARCH, E.G. FUEL RESEARCH...............................................................4

1.4 LINKAGES WITH OTHER SECTORS OF THE ECONOMY............................................................5

1.4.1 TRANSPORT AND STORAGE...........................................................................................5

1.4.2 WHOLESALE AND RETAIL...............................................................................................5

1.4.3 SAFETY AND SECURITY...................................................................................................5

1.4.4 ENVIRONMENTAL PROTECTION AND CONSERVATION..................................................5

2 PROFILE OF THE SUBSECTOR.........................................................................................................6

2.1 ROLE-PLAYERS IN THE SUBSECTOR................................................................................6

2.1.1 GOVERNMENT...............................................................................................................6

2.1.2 STATE-OWNED ENTERPRISE...........................................................................................6

2.1.3 INDUSTRY ASSOCIATIONS..............................................................................................7

2.1.4 EMPLOYER ASSOCIATIONS.............................................................................................7

2.1.5 ORGANISATION FOR WOMEN IN THE OIL AND ENERGY SECTOR...................................8

2.1.6 TRADE UNIONS..............................................................................................................8

2.2 EMPLOYERS.........................................................................................................................8

2.3 EMPLOYEES REPRESENTED BY THE SUBSECTOR..........................................................9

2.3.1 TOTAL EMPLOYMENT................................................................................................9

2.3.2 EQUITY PROFILE...........................................................................................................11

2.3.3 EDUCATIONAL QUALIFICATIONS..................................................................................14

2.3.4 AGE..............................................................................................................................16

2.4 CONCLUSION.......................................................................................................................18

3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR......................................19

3.1 ECONOMIC GROWTH...........................................................................................................19

3.2 FACTORS THAT IMPACT ON THE SECTOR.............................................................................21

3.2.1 LEGISLATION AND REGULATIONS................................................................................21

3.2.2 POLICIES AND PLANS....................................................................................................23

3.2.3 CRUDE OIL IMPORTS....................................................................................................27

3.2.4 FUEL PRICING...............................................................................................................27

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3.2.5 REFINERY CAPACITY.....................................................................................................28

3.2.6 LOGISTICAL INFRASTRUCTURE.....................................................................................29

3.2.7 CLEANER FUEL..............................................................................................................29

3.2.8 SCIENTIFIC BASE AND DEPENDENCE ON RESEARCH AND DEVELOPMENT...................30

3.2.9 GLOBAL INTEGRATION.................................................................................................30

3.2.10 OFFSHORE OPERATIONS..............................................................................................30

3.2.11 TECHNOLOGICAL DEVELOPMENT................................................................................31

3.2.12 TRANSFORMATION......................................................................................................31

3.3 CONCLUSION.......................................................................................................................32

4 THE DEMAND FOR SKILLS IN THE SUBSECTOR.............................................................................34

4.1 TRENDS IN EMPLOYMENT....................................................................................................34

4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND...............................................................35

4.3 CONCLUSION.......................................................................................................................44

5 THE SUPPLY OF SKILLS TO THE SUBSECTOR.................................................................................45

5.1 NEW ENTRANTS TO THE LABOUR MARKET..........................................................................45

5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES...........................................................46

5.3 CONCLUSION.......................................................................................................................47

6 SKILLS SHORTAGES IN THE SUBSECTOR.......................................................................................49

6.1 SCARCE SKILLS IN THE SUBSECTOR......................................................................................49

6.2 REASONS FOR SCARCITY......................................................................................................51

6.3 INTERVENTIONS TO ADDRESS SKILLS SHORTAGES...............................................................52

6.4 CONCLUSION.......................................................................................................................52

7 SKILLS PLAN FOR THE SUBSECTOR...............................................................................................53

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LIST OF TABLES

Table 1-1 Scope of coverage..................................................................................................................2

Table 2-1 Levy-paying companies and WSP submissions according to subsector.................................9

Table 2-2 Size of levy-paying companies and companies that submitted WSPs....................................9

Table 2-3 Highest educational qualifications of workers in the Petroleum Subsector: March 2012. . .15

Table 2-4 Occupational category of workers with undefined qualifications in the Petroleum

Subsector.............................................................................................................................................15

Table 2-5 Occupations by age in the Petroleum Subsector.................................................................17

Table 4-1 Average percentage change in employment, 1970-2020....................................................35

Table 4-2 Distribution of workers across occupational categories......................................................35

Table 4-3 Managers in the Petroleum Subsector................................................................................36

Table 4-4 Professionals in the Petroleum Subsector...........................................................................38

Table 4-5 Technicians and Associate Professionals in the Petroleum Subsector.................................40

Table 4-6 Clerical Support Workers in the Petroleum Subsector.........................................................41

Table 4-7 Service and Sales Workers in the Petroleum Subsector.......................................................42

Table 4-8 Skilled Agricultural, Forestry, Fishery, Craft and Related Trades Workers in the Petroleum

Subsector.............................................................................................................................................42

Table 4-9 Plant and Machine Operators and Assemblers in the Petroleum Subsector.......................43

Table 4-10 Elementary workers in the Petroleum Subsector..............................................................44

Table 5-1 Training opportunities for employees: March 2012............................................................47

Table 6-1 Vacancies in the Petroleum Subsector.................................................................................50

Table 6-2 Learning interventions to address scarce skills, 2011/2012.................................................52

LIST OF FIGURES

Figure 2-1 Employment in the Chemical Sector.....................................................................................9

Figure 2-2 Employment type...............................................................................................................10

Figure 2-3 Race distribution of workers in the Petroleum Subsector..................................................10

Figure 2-4 Gender distribution of workers in the Petroleum Subsector..............................................11

Figure 2-5 Distribution of females in the Chemical Subsectors: March 2012......................................12

Figure 2-6 Distribution of females according to race in the Petroleum Subsector: March 2012.........12

Figure 2-7 Gender distribution according to occupational category: March 2012..............................13

Figure 2-8 Percentage employees with disabilities per subsector: March 2012..................................14

Figure 3-1 Average percentage change of Gross Value Added: 1970-2020.........................................20

Figure 4-1 Employment in the Petroleum Subsector compared to total employment in the Chemical Sector from 1970 to 2012....................................................................................................................34

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Figure 5-1 Proportion of employees who received training opportunities according to occupational category: March 2012..........................................................................................................................47

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ACRONYMS AND ABBREVIATIONS

ABET Adult Basic Education and TrainingATR Annual Training ReportBBE Black Economic EmpowermentBFP Basic Fuel PriceCHIETA Chemical Industries Sector Education and Training AuthorityCEF Central Energy FundCEPPWAWU Chemical, Energy, Paper, Printing, Wood and Allied Workers Union

CPD Continuing Professional DevelopmentCTL Coal-to-Liquid TechnologyDBE Department of Basic EducationDDOP Durban Dig-Out PortDHET Department of Higher Education and TrainingDEA Department of Environmental AffairsDME Department of Minerals and EnergyDMR Department of Mineral ResourcesDoE Department of EnergyDoH Department of HealthDoL Department of Labourdti Department of Trade and IndustryECSA Engineering Council of South AfricaEE Employment EquityEU European UnionFET Further Education and TrainingFETC Further Education and Training CertificateFLC Foundational Learning CompetencyFMCG Fast Moving Consumer GoodsFOB Free-on BoardGDP Gross Domestic ProductGET General Education and TrainingGIWUSA General Industries Workers Union of South AfricaGTL Gas-to-Liquid TechnologyHEI Higher Education InstitutionHEMIS Higher Education Management Information SystemHET Higher Education and TrainingHETC Higher Education and Training CertificateIDZ Industrial Development ZoneIEP Integrated Energy PlanIRP Integrated Resource PlanIPAP Industrial Policy Action PlansIRP Integrated Resource PlanISOE Institute of Sectoral or Occupational ExcellenceLFC Liquid Fuels CharterLPG Liquefied Petroleum GasNAAMSA National Association of Automobile Manufacturers

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NC(V) National Certificate (Vocational)NDP National Development PlanNERSA National Energy Regulator of South AfricaNGP New Growth PathNPC National Planning CommissionNPEA National Petroleum Employers’ AssociationNPO Non-Profit OrganisationNQF National Qualifications FrameworkNSC National Senior CertificateNSDS National Skills Development StrategyOFO Organising Framework of OccupationsPASA Petroleum Agency of South AfricaPG Dip/Cert Post Graduate Diploma/CertificateQLFS Quarterly Labour Force SurveyR&D Research and DevelopmentRPL Recognition of Prior LearningSACWU South African Chemical Workers UnionSADC Southern African Development CommunitySAOGA South African Oil & Gas AllianceSAPIA South African Petroleum Industry AssociationSARB South African Reserve BankSARS South African Revenue ServicesSDA Skills Development ActSET Science, Engineering and TechnologySETA Sector Education and Training AuthoritySSF Strategic Fuel FundSHE&Q Safety, Health, Environment and QualitySIC Standard Industrial ClassificationSMME Small, medium-sized and micro-enterprisesSSP Sector Skills PlanStats SA Statistics South AfricaUASA United Association of South AfricaUCT University of Cape TownUG Dip/Cert Undergraduate Diploma/Certificate

UoT University of TechnologyUSD United States DollarWits University of the WitwatersrandWOESA Women in Oil and Energy South AfricaWSP Workplace Skills PlanZAR South African Rand

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EXECUTIVE SUMMARY

INTRODUCTION

The Petroleum Subsector includes upstream recovery from the earth’s resources, midstream conversion into a number of core elements and downstream commercial applications. The economic activities in the subsector include the following: exploration of oil and gas, refining of crude oil, gas to liquid (GTL) refining; storage and distribution, and wholesaling. Industrial research, and specifically fuel research, is also included. Retailing does not fall in the scope of the subsector. The Standard Industrial Classification (SIC) categories included in the scope of the subsector are: Manufacture of coke oven products; petroleum refineries/synthesisers; wholesale trade in solid, liquid and gaseous fuels and related products; and industrial research. The Petroleum Subsector of CHIETA relates to the Department of Trade and Industry’s (dti’s) strategic subsector called Liquid Fuels and Associated Products. The Petroleum Subsector has linkages with other industries such as transport and storage, wholesale and retail, safety and security, and environmental protection and conservation.

PROFILE OF THE PETROLEUM SUBSECTOR

The role players in the Petroleum Subsector are government, a state-owned enterprise (PetroSA), private companies (employers), industry associations, employer associations, an organisation for women in the oil and energy sector (WOESA), and trade unions.

There are 251 levy-paying companies in the Petroleum Subsector, which forms 16,3% of levy-paying companies in the Chemical Sector as a whole. Eighty-five of these companies submitted workplace skills plans (WSPs) to CHIETA in 2011/2012; this represents a third (33,9%) of the levy-paying companies in the Petroleum Subsector. Even though the levy-paying companies in the Petroleum Subsector only forms 16,3% of levy-paying companies in the Chemical Sector as a whole, they contributed 43,2% of the total levies paid in the Chemical Sector in 2011/2012.

More than half (59,0%) of the levy-paying companies in the Petroleum Subsector are categorised as micro (employing between 1 and 19 people), just more than a fifth (21,1%) as small (employing between 20 and 49 people), just over a tenth (12,4%) as medium (employing between 50 and 149 people), and 7,6% as large (employing 150 and more people). Almost all (84,2%) of the large levy-paying companies submitted WSPs, while just more than half (58,1%) of the medium and just less than half (47,2%) of the small levy-paying companies submitted WSPs. Close to a fifth (17,6%) of micro levy-paying companies submitted WSPs. The Petroleum Subsector provides most of the employment opportunities in the Chemical Sector; the subsector employs more than a quarter (28,4%) of the total workforce ofthe sector. Almost all (94,6%) of the workers in the Petroleum Subsector are in permanent positions.

In terms of equity just more than half (52,2%) of the workers are African, close to a quarter (23,7%) are female, and 0,6% are living with a disability. Whites are in the majority in managerial positions and they are over-represented professional positions. More than half (54,1%) of the managers in the Petroleum Subsector are White and 43,3% of professionals are also White. Nearly all the plant and machine operators and assemblers (88,2%) and workers in the elementary occupations (82,6%) are African. Almost three quarters (72,1%) of service and sales workers and just over half of technicians and associate professionals, and skilled and trade workers respectively are African (53,4% and 51,6%). Males are in the majority in all the occupational categories except for clerical support workers where females represent more than half (54,2%) of the workers in the category. The representativeness and progress of women are directed and followed by the L iquid Fuels Charter and WOESA. .

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In terms of educational qualifications almost half (48,0%) of the workers hold qualifications higher than NQF Level 4. This is an indication of the nature of the subsector; a large contingent of highly qualified people is employed in the subsector. A further 37,3% of workers hold qualifications at NQF Level 4, while only 10,9% hold qualifications between NQF Level 1 and 3 and a low 3,8% below NQF Level 1. The average age of all workers in the Petroleum Subsector is 41.

Plant and machine operators and assemblers, and managers are the oldest contingents of workers in the subsector; the average age of plant and machine operators and assemblers is 46 and managers 45. More than a tenth (13,9%) of plant and machine operators and assemblers are close to retirement (between the ages of 55 and 60) and a tenth of managers (10,6%) and workers in elementary occupations (10,9%) respectively. Almost a tenth (8,2%) of skilled agricultural, forestry, fishery, craft and related trades workers are also going to retire over the next five years. The subsector needs to plan for the replacement of the future retirees sufficiently.

ECONOMIC PERFORMANCE AND FACTORS IMPACTING ON THE SUBSECTOR

Indications are that the Petroleum Subsector is in a positive growth phase. There are different drivers of growth in this subsector: Within the borders of South Africa upstream oil and gas activity has strong growth potential over the next decade. There are significant opportunities, specifically Project Mthombo (this is a PetroSA initiative to build a new world-class crude refinery in the Coega Industrial Development Zone in the Eastern Cape), the Orange River Basin off South Africa’s northwest coast, and the exploration of onshore shale gas opportunities in the Karoo. Outside of the borders of South Africa the growth in the industry provides a huge opportunity for South Africa to become a major role-player in supplying services related to logistics, repair and maintenance. It is foreseen that South Africa can become a hub in this regard for the sub-Saharan region. The dti has committed itself to contribute substantially towards identification of key export markets, the development of common standards for the classification of chemicals in the SADC, and an improvement in the trade balance with respect to building new areas of export.

The liquid fuels industry is, because of its strategic nature, subject to certain government regulations. The industry is regulated by the Department of Energy (DoE). Currently there are licensing requirements and regulations pertaining to aspects such as the following:

Importation and exportation of crude oil.

Importation and exportation of petroleum products.

Importation and exportation of blending components.

Operation of petroleum pipelines, including setting of tariff structures.

Operation of storage facilities and loading facilities, including approval of tariff structures.

Manufacturing of petroleum products.

Wholesale of fuels.

Retailing of fuels, including the pump price of petrol by grade and location.

Recovery of transport costs.

Liquefied petroleum gas refinery gate price.

Retail price for illuminating paraffin.

Retail and wholesale margins.

Petroleum products specifications and standards.

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The major policies and plans that are relevant to the Petroleum Subsector are the following: The Energy Policy White Paper (1998); the Integrated Resource Plan (2010); the Integrated Energy Plan (IEP) (2003); the New Integrated Energy Plan currently under development; the Energy Security Master Plan Liquid Fuels; the National Development Plan (NDP) 2030; the Industrial Policy Action Plan (IPAP2) and IPAP 2013/14-2015/16; the Draft Strategic Stocks Petroleum Policy and the Draft Strategic Stocks Implementation Plan. The DoE is in the process of finalising a new IEP for South Africa, which will lay out the provision of all energy sources in the country up to 2050. The IEP will incorporate other plans such as the new Liquid Fuels Master Plan, the Gas Infrastructure Plan and the Integrated Resource Plan for 2010 (IRP 2010). Both the IEP and the NDP emphasise the need for a greater mix of energy sources to meet future demand. In terms of transformation the Petroleum Subsector is the only subsector within the Chemical Sector, which is subject to a transformation charter - called the Petroleum and Liquid Fuels Charter of 2000.

The nature of the subsector also makes it very dependent on and vulnerable to other dynamics such as crude oil imports, security of supply, the logistical infrastructure, and environmental considerations in terms of cleaner fuel. Factors that have a more direct influence on skills per se relate to global integration, offshore operations, transformation in the subsector, technological development, and research and development.

THE DEMAND FOR SKILLS IN THE SUBSECTOR

The demand for labour in absolute numbers in the Chemical Sector has been declining steadily over the last two decades, with investments in capital equipment being largely used to replace labour. The reduction in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. However, employment in the Petroleum Subsector did not show the same declining trend when compared to total employment in the Chemical Sector. For the period 2000 to 2010 the average percentage growth in employment in the Petroleum Subsector was higher than in the Chemical Sector as a whole. The projected growth until 2020 shows the same trend.

The occupational composition of demand shows that just more than a quarter (29,2%) of the current positions in the subsector are for technicians and associate professionals and almost a fifth (18,1%) for professionals. The large contingent of professionals, and technicians and associate professionals is an indication of the nature of the subsector; it is a sector that employs highly qualified and skilled people. In addition, just more than a tenth (11,1%) of workers are categorised as trade workers – the category that includes artisans. Managers constitute 12,3% of the workers. Just more than a tenth (11,1%) are operators and assemblers respectively. Just less than a tenth are clerical support workers (8,6%) and elementary workers (8,0%) respectively.

THE SUPPLY OF SKILLS TO THE SUBSECTOR

The supply-side of the labour market consists of the stock of skills – the skills currently employed in or available for work in the the subsector and the flow of skills – the flow of new entrants into the market. In the analysis of the flow of skills the following is considered: the output from the basic education system, the further education and training colleges and higher education and training institutions. Work-based training such as apprenticeships and learnerships also plays an important role in the flow of new entrants to the market.

In respect of the supply of new skills to the subsector there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7,0% for diplomas in chemical engineering and technology and 6,0% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy, the Chemical Sector, and the Petroleum Subsector in particular. In order to ensure future growth it will be necessary to support higher education institutions through a variety

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of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace-training opportunities for students from the universities of technology.

The output from the school system stays a concern in respect of the following: inadequate (in terms of quantity and quality) supply of school leavers with Mathematics and Physical Science passes that can pursue studies to become engineers, technologist, technicians and artisans; and inadequate education levels of the general workforce that enters the Chemical Sector without previous training. The supply of new skills from the further education and training sector into the Chemical Sector has traditionally been very limited. However, government’s recent focus on increasing both the quality and quantity of output from further education and training colleges indicates that this sector may in future play a more important role in the supply of skills to the Chemical Sector.

The skills of current employees need to be augmented in the workplace in order to ensure that workers acquire the skills necessary for specific positions, that they can progress in career paths and that they remain abreast of new technologies and developments in their specific fields. Employers are to a large extent responsible to ensure that employees are afforded further education and training opportunities.

In the annual training reports submitted to CHIETA in respect of the 2011/2012 financial year, employers reported that almost two thirds (64,4%) of employees in the Petroleum Sector received some form of training. In total about 58 441 training opportunities were afforded to employees (one employee can have access to more than one training opportunity). Just more than a third (36,1%) of these opportunities were short courses, about a fifth (19,3%) induction training and a tenth foundational learning competency. Nine employees in the Petroleum Subsector obtained doctoral degrees.

The initiatives such as the establishment of relationships with further education and training colleges and the partnership between the South African Petroleum Industry Association, the University of the Witwatersrand and CHIETA to establish an integrated approach to the skills requirements of South Africa’s Petroleum industry are all targeted endeavours to ensure sufficient supply to the subsector.

SKILLS SHORTAGES IN THE SUBSECTOR

Of the 85 organisations whose WSPs were approved by the CHIETA in June 2012, 15 (17,6%) indicated that they experienced a scarcity of skills. The total number of people reported to be needed in occupations in which there were skills shortages is 311; this equates to 0,7% of total employment in the subsector. The data shows that the skills of trade workers such as welders, boilermakers, mechanical fitters and electrical mechanics are in high demand. The same applies to chemical plant controllers. The skills of professionals such as chemical engineers, process technologists, mechanical engineers, geologists and electrical engineers are also sought after. The Petroleum Subsector and the Chemical Sector as a whole has to compete with the broader manufacturing sector and with other sectors of the economy for some of these skills.

Some of the reasons that were given for the difficulty in finding certain skills relate to the lack of training in certain fields, the lack of articulation between qualifications, legal requirements for certain positions and insufficient development of career paths that lead to certain occupations. The CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the sector as well as the development of skills within the existing workforce. These initiatives range from support for further and higher education institutions and partnerships with government and industry associations.

SKILLS PLAN FOR THE SUBSECTOR

Stakeholders that attended the skills planning workshop for the subsector in June 2013, identified several initiatives that should be put in place and be applied to ensure that the necessary skills will

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be available to the Petroleum Subsector. The most important initiatives relate to the following: artisan training; addressing the lack of articulation regarding engineering technicians, engineering technologists and engineers; focusing on the partnership between SAPIA, Wits and CHIETA in order to establish an integrated approach to the skills requirements of South Africa’s petroleum industry; further fostering of partnerships with further and higher education institutions, Government and industry associations in order to continue contributing to both the development of new skills for the sector, as well as the development of skills of the existing workforce; taking the role of the environment into consideration in creating new and/or change occupations; and keeping continuous professional development programmes current in order to update the skills of professionals in the subsector in accordance with technological and other developments.

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1 INTRODUCTION

1.1 BACKGROUND

The Chemical Industry Education and Training Authority (CHIETA) consists of five chambers that represent the nine subsectors of the Chemicals Sector. The five chambers are:

Petroleum and Base Chemicals Fast Moving Consumer Goods and Pharmaceuticals Explosives and Fertilisers Speciality Chemicals and Surface Coatings and Glass.

Skills planning is a core function of all SETAs and according to CHIETA’s constitution, this function cascades down to its constituent chambers. According to the CHIETA constitution the chambers are (among other things) responsible to consult with the nine sub-sectors in areas of skills development and planning. The ultimate objective of such consultation is to compile a SSP for the Chemical Sector that takes into consideration areas of skills demand, skills supply, and scarce and critical skills as they manifest in the respective subsectors and a strategic plan that addresses the needs of the total Chemical Sector and its subsectors.

In 2013 the CHIETA commissioned subsector skills plans for each of the nine subsectors. These documents provide detailed analyses of each of the subsectors and are meant to assist the respective chambers in skills planning and to reflect the skills needs of and skills planning for each of the subsectors.

In June 2013 nine workshops were held with representatives of each of the nine subsectors. The workshops were meant to inform the subsector skills plans and covered the following topics:

• The skills planning process and chambers’ responsibilities in this regard.• The profiles of the subsectors.• Economic growth of the subsectors and factors that influence the growth of the subsectors.• The demand for skills in the respective subsectors.• The supply of skills and supply-side challenges and constraints.• Skill shortages.• Key interventions taking place and needed in the respective subsectors.

Apart from the workshops the subsector skills plans are also based on a detailed analysis of the workplace skills plans (WSPs) and annual training reports (ATRs) submitted to CHIETA by employers in the sector in June 2012. In 2012 employers for the first time submitted individual employee records to CHIETA. For the purpose of this report, the data were weighted to extrapolate it to subsectoral totals.

Further information was obtained from desktop research and national data sources such as national accounts data. (National accounts data series were obtained from Quantec.)

1.2 FORMAT OF THE SUBSECTOR SKILLS PLAN

In the rest of this first chapter the scope of the subsector and the economic activities that comprise the subsector are described. This is followed by a brief outline of the linkages of the subsector with other important industries or sectors of the economy. Chapter 2 provides a profile of the subsector. This profile includes the most important organisations in the subsector as well as the employees working in the subsector.

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Chapter 3 deals with the economic performance of the subsector and the factors that influence its performance. These factors include Government interventions specifically aimed at stimulating the growth of the subsector.

Chapter 4 of this subsector skills plan focuses on the demand for labour. The demand for labour is analysed from the perspective of the occupations that make up the subsector. The occupational information in turn provides insight into the type and level of skills needed.

Chapter 5 describes the supply of skills. As the subsector shares in the broader supply of skills to the Chemical Sector as a whole and to the total South African labour market, it is not possible to give a detailed analysis of supply as it would meet the demand for skills in the subsector. Instead a broad overview of supply trends are given together with supply-side interventions and constraints as identified subsector representatives in the workshops.

Chapter 6 hones in on the mismatches that exist between the demand and supply sides of the labour market. Typically, these mismatches manifest in skills shortages and in skills deficiencies in the current workforce.

The last chapter of the sector skills plan should include the strategic planning of skills interventions aimed specifically at this subsector. This chapter will be completed once the Petroleum and Base Chemicals Chamber has engaged with the content of the report and has attended to its own strategic plan.

1.3 SCOPE OF THE SUBSECTOR

The Petroleum Subsector includes upstream recovery from the earth’s resources, midstream conversion into a number of core elements and downstream commercial applications. The economic activities in the subsector include the following: exploration of oil and gas, refining of crude oil, gas to liquid (GTL) refining; storage and distribution, and wholesaling. Industrial research, and specifically fuel research, is also included. Retailing does not fall in the scope of the subsector. The Standard Industrial Classification (SIC) codes that are applicable to the Petroleum Subsector are listed in the table below. The scope includes the following: Manufacture of coke oven products; petroleum refineries/synthesisers; wholesale trade in solid, liquid and gaseous fuels and related products; and industrial research. The Petroleum Subsector of CHIETA relates to the Department of Trade and Industry’s (dti’s) strategic subsector called Liquid Fuels and Associated Products.

Table 1-1 Scope of coverage

SIC Code Scope of coverage33100 Manufacture of coke oven products33200 Petroleum refineries/synthesisers61410 Wholesale trade in solid, liquid and gaseous fuels and related products87140 Industrial research, e.g. fuel research

1.3.1 MANUFACTURE OF COKE OVEN PRODUCTS

Coke and coke by-products, including coke oven gas, is produced by heating suitable grades of coal in the absence of air. The process further includes the processing of coke oven gas to remove tar, ammonia, phenol, naphthalene, light oil and sulfur before the gas is used as fuel for heating the ovens1. Seven companies working in this field are paying skills development levies to the CHIETA.

1http://www1.ifc.org/wps/wcm/connect/9ecab70048855c048ab4da6a6515bb18/coke_PPAH.pdf?MOD=AJPERES .Accessed 28 May 2013.

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1.3.2 PETROLEUM REFINERIES

A petroleum refinery is an industrial plant that refines crude oil into petroleum products such as diesel, gasoline and heating oils. Oil refineries essentially serve as the second stage in the production process following the actual extraction of crude oil by oil rigs. The first step in the refining process is distillation, where crude oil is heated at extreme temperatures to separate the different hydrocarbons. The crude oil components, once separated, can be sold to different industries for a broad range of purposes. Lubricants can be sold to industrial plants immediately after distillation, but other products require more refining before reaching the final user. Major refineries have the capacity to process hundreds of thousands of barrels of crude oil a day. A refinery is considered an essential part of the downstream side of the petroleum industry2.

South Africa has very limited oil reserves and about 64% of its crude oil requirements are met by imports from the Middle East and Africa3. South Africa has the second largest refinery capacity in Africa after Algeria. This includes four crude oil refineries, namely Enref, Sapref, Chevref and Natref.

The Enref refinery is situated in Durban and is owned by Engen. The refinery has the capacity to produce 120 000 bbl/d of liquid fuels. Engen further owns 66 depots, 7 terminals, aviation facilities for 22 airports, a transport fleet of 180 vehicles and a network of more than 1 200 service stations in South Africa. It is estimated that the company has a 26% share in the retail market4.

Sapref is the largest refinery in South Africa, also located in Durban and is owned by Shell and BP. The refinery has the capacity to produce 180 000 bbl/d of liquid fuels. Sapref also has a mooring facility through which 80% of South Africa’s crude oil is imported. Shell is a global group of energy and petrochemicals firms, which is also involved in other business activities such as exploration, crude oil supply, retail and commercial marketing operations (such as fuels, lubricants, marine and aviation fuel, and liquefied petroleum gas (LPG)). Thebe Investment Corporation, the BEE partner of Shell South Africa, has a 25% share in the companies’ domestic activities. BP Southern Africa owns 26 depots and distribution sites and more than 500 BP-branded service stations. The company also owns 50% of South African Lubricants Manufacturing Company. The Mineworkers Investment Company and WDB Investment Holdings are BP’s BEE partners5.

The Chevref refinery is in Cape Town and is owned by Chevron South Africa. The refinery has the capacity to produce 100 000 bbl/d of liquid fuels, including petrol, diesel, jet fuel, LPG, fuel oil and paving asphalt. In addition, Chevron South Africa is also engaged in business activities in lubricants, a network of Caltex retail outlets, 28 terminals and a fleet of approximately 132 tanker trucks6.

The Natref refinery is in Sasolburg and is owned by Sasol and Total. Natref has the capacity to produce 108 000 bbl/d of liquid fuels. Sasol also produces synfuels at a facility in Secunda and Sasol Oil is the arm of Sasol that is involved in liquid fuels, bitumen and lubricants marketing activities through commercial and retailing interests. In addition to the refinery, Total South Africa also owns more than 500 service stations in South Africa. Tosaco is the BEE partner of Total South Africa7.

1.3.3 SYNTHETIC FUELS PRODUCTION – GTL

South Africa is a world leader in coal-based synthesis and gas-to-liquid technologies and has a unique and highly developed synfuels industry which, using coal and gas as feedstock, has the

2 http://www.investopedia.com/terms/o/oil-refinery.asp. Accessed 28 May 2013.3 http://www.hsrc.ac.za/uploads/pageContent/3328/2011febSouth%20African%20Crude%20Oil%20import%20portfolio%20risks.pdf. Accessed 28 May 2013.4 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector. 5 Ibid.6 Ibid.7 Ibid.

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capacity to produce 195 000 bbl/d of liquid fuel products – 150 000 bbl/d at a facility owned by Sasol and 45 000 bbl/d at a facility owned by PetroSA8. The Sasol GTL facility is in Secunda, Mpumalanga. This plant, which is the only commercial GTL facility in the world, produces petrol, diesel, jet fuel, illuminating paraffin, fuel oils, bitumen, as well as automotive and industrial lubricants 9. The PetroSA GTL refinery at Mossel Bay was commissioned in 1992 and remains the third largest GTL refinery among the five now operating worldwide10.

1.3.4 WHOLESALE TRADE IN SOLID, LIQUID AND GASEOUS FUELS AND RELATED PRODUCTS

In terms of wholesaling, BP Southern Africa, Chevron South Africa, Engen Petroleum, PetroSA, Sasol Oil, Shell South Africa and Total South Africa are the main players in the South African industry. They operate storage terminals and distribution facilities throughout the country. Until recently, there were very few non-refining wholesalers supplying petrol and diesel in South Africa 11. Government regulates wholesale margins and controls the retail price of petrol.

1.3.5 INDUSTRIAL RESEARCH, E.G. FUEL RESEARCH

South Africa is a world leader in fuel conversion technologies and a recent World Bank report highlights the area as one of SA's core research and development strengths 12. The petroleum refining companies are all involved in research in this regard. They usually work in collaboration with the applicable departments at universities. One example of a research entity in the field is PetroSA's first academic fuel research centre. The facility is called PetroSA Synthetic Fuels Innovation Centre and is established at the South African Institute for Advanced Materials Chemistry at the University of the Western Cape. It is part of a five-year research programme and it will serve as the hub for the company's gas-to-liquid research.

Another example is the research collaboration between Sasol and the University of Pretoria’s department of chemistry and chemical engineering. The initiative forms part of Sasol's university collaboration initiative, a long-term programme that supports the core objectives of world-class teaching and research capacity in chemistry and chemical engineering at selected South African universities13.

Sasol is also in partnerships with the University of Cape Town (UCT). The Sasol Advanced Fuels Laboratory was established at UCT in order to conduct synthetic-fuel applications research. The project also serves the purpose of building capacity for Sasol's future growth. The research work entails the study of combustion in engines, and it ranges from the study of current synthetic fuels in current engines to future fuels and future engine concepts14.

1.4 LINKAGES WITH OTHER SECTORS OF THE ECONOMY

The Petroleum Subsector has linkages with other industries such as the following:

1.4.1 TRANSPORT AND STORAGE

8 Ibid.9 Ibid.10 http://www.petrosa.co.za/innovation_in_action/Pages/Operations-and-Refinery.aspx. Accessed 31 May 2013.11 http://www.sapia.co.za/industry-overview/fuel-industry.html. Accessed 20 May 2013.12 http://www.bdlive.co.za/articles/2012/05/16/petrosa-launches-sa-s-first-academic-fuel-research-centre;jsessionid=71B5475152CA2825A9899B5441858237.present1.bdfm . Accessed 20 May 2013.13 http://www.southafrica.info/business/trends/innovations/sasol-210510.htm#.UauafdJHK84. Accessed 20 May 2013.14 http://www.safl.uct.ac.za/about/. Accessed 20 May 2013.

4

The subsector is dependent on transport and storage of its products. Almost all storage of petroleum is of relatively short duration, lasting only while the oil or gas is awaiting transport or processing. An oil depot is an industrial facility for the storage of oil and/or petrochemical products and from which these products are usually transported to end users or further storage facilities. An oil depot typically has tankage, either above ground or underground, and frameworks for the discharge of products into road tankers or other vehicles (such as barges) or pipelines. Oil depots are usually situated close to oil refineries. Some depots are attached to pipelines from which they draw their supplies and depots can also be fed by rail, by barge and by road tanker. Most oil depots also have road tankers transporting products to petrol stations or other users.

As indicated in Section 1.1 a large part of the storage and transport of petroleum products is incorporated in the production processes and the production companies are also involved in the storage and transportation of the products.

1.4.2 WHOLESALE AND RETAIL

Petroleum products are dependent on wholesale and retail activities in order to get the product to consumers. Companies have to be registered at the Department of Energy (DoE) as Wholesale License holders in order to trade petroleum products. There are over 5 000 fuel retailers (or petrol stations) in South Arica that sell petrol to consumers15. The South African Petroleum Retailers Association and The Fuel Retail Association (previously known as the Service Station Association) are both employers’ bodies that promote the interests of fuel retailers in South Africa.

1.4.3 SAFETY AND SECURITY

Due to the nature of the product, safety and security is very important to the subsector. Safety and security are critical factors in exploration and production operations, as well as in the storage and transportation of petroleum products. The industry therefore has linkages with the safety and security industry per se, to ensure the safety of products while in storage or during transportation for example. Organisations that provide specialised safety training are used to train workers in the subsector.

1.4.4 ENVIRONMENTAL PROTECTION AND CONSERVATION

The petroleum industry faces significant challenges pertaining to the environmental impact of its products. For example, reducing the level of harmful emissions from motor vehicles is a strong focus area in the subsector. The subsector therefore links strongly with all industries relating to environmental affairs in this regard.

2 PROFILE OF THE SUBSECTOR

This part of the report provides a profile of the Petroleum Subsector. It starts by describing the different role-players in the subsector such as government, the state-owned enterprise, industry associations, employers’ associations and trade unions’ active in the industry. It also describes the employees working in the subsector as at the end of March 2012.

2.1 ROLE-PLAYERS IN THE SUBSECTOR

The main role players in the Petroleum Subsector are government, a state-owned enterprise, private companies (employers), industry associations, employer associations, an organisation for women in the oil and energy sector, and trade unions.

15 Matsho, J. (2010). The retail petrol industry in South Africa. Unpublished Master’s Dissertation. University of Zululand.

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2.1.1 GOVERNMENT

Several Government departments exercise specific regulatory functions over the oil industry. Although the DoE is seen as the main role-player, other departments such as the Department of Mineral Resources (DMR), the Department of Health (DoH), the dti are also involved. For example, the old Department of Minerals and Energy oversaw the development of the White Paper on Energy, which directs the future of the oil industry; the Department of Environmental Affairs is responsible for environmental legislation; and the dti deals with mergers and acquisitions that could affect employment security and conditions of work. Transnet is responsible for the maintenance of the pipeline infrastructure for the distribution of petroleum. However, the major entities in terms of the regulation of South Africa’s petroleum industry are the Department of Energy (DoE) and the National Energy Regulator of South Africa (NERSA). The DoE’s Hydrocarbons and Energy Planning Branch is responsible for coal, gas, liquid fuels, energy efficiency, renewable energy and energy planning, including the energy database. Most of the activities of the DoE reside in planning and policy making regarding the Petroleum Subsector.

South Africa’s liquid fuels industry is regulated by NERSA, which was established in terms of the National Energy Regulator Act, 2004 (Act No. 40 of 2004) with the mandate to undertake the functions of the Gas Regulator as set out in the Gas Act of 2001, the Petroleum Pipelines Regulatory Authority as set out in the Petroleum Pipelines Act of 2003 and the National Electricity Regulator as set out in the Electricity Act of 1987 as amended. NERSA’s mandate is further derived from written Government policies as well as Regulations issued by the Minister of Energy16.

Designated in terms of the Mineral and Petroleum Resources Development Act, the Petroleum Agency of South Africa (PASA) regulates exploration and production activities through licensing and acts as the custodian of the national petroleum exploration and production database.

2.1.2 STATE-OWNED ENTERPRISE

PetroSA is the integrated oil company under the Central Energy Fund (CEF) and is involved in a range of activities that span the petroleum chain. The activities include exploration in South Africa, as well as in other African countries such as Namibia and Equatorial Guinea, production of oil and natural gas, management of oil storage facilities, selling of petrochemical products to South Africa´s major oil companies and exporting petrochemical products to the international markets17.

PetroSA started operating in 1992 and it is the third largest GTL refinery among the five now operating worldwide. Recently PetroSA has shown its intention to become directly involved in the downstream segment of the liquid fuels industry (the sale and distribution of petroleum products) by acquiring depot facilities in Bloemfontein and Tzaneen. The company is also planning the development of a new crude oil refinery, known as Project Mthombo which will bring them in line with their strategic objective of providing at least 25% of South Africa’s liquid fuels needs by 202018.

2.1.3 INDUSTRY ASSOCIATIONS

There are two industry associations active in the subsector, namely the South African Petroleum Industry Association (SAPIA) and the South African Oil and Gas Alliance (SAOGA).

SAPIA was founded in 1994 and is the voice of the petroleum industry in South Africa. It represents the collective interests of its members which are BP Southern Africa (Pty) Ltd, Chevron South Africa (Pty) Ltd, Engen Petroleum Limited, PetroSA (Pty) Ltd, Sasol Limited, Shell SA (Pty) Ltd and Total

16 http://www.nersa.org.za/ContentPage.aspx?PageId=231&PageName=Profile. Accessed 20 May 2013.17 http://www.petrosa.co.za/Pages/Home.aspx. Accessed 20 May 2013.18 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.

6

South Africa (Pty) Ltd. The SAPIA Constitution was amended during 2012 to make provision for admission of members that are licenced wholesalers or manufactures19.

The association plays a strategic role in addressing a range of activities in the subsector such as the refining, distribution and marketing of petroleum products. It also strives to promote the industry’s environmental and socio-economic progress by providing research information, expert advice and communicating on behalf of the industry to government, members of the public and media. Furthermore, SAPIA is very involved with the CHIETA in terms of strategic co-operation on human resource development in the subsector.

SAOGA is a non-profit organisation based in the Western Cape, aimed at promoting the development of South African-based industry that supplies products and services to the upstream oil and gas sector. The organisation operates as a partnership between the public and private sectors, receiving public funding to carry out a range of industry development activities and working to promote the interests of a membership base of about 170 private sector companies. The organisation is also involved in skills development for the industry. SAOGA has a Skills Programme Office, which currently focuses on the following20:

Artisan training. Adoption of global standards - the skills division of SAOGA works with local training

institutions to harmonise the local qualifications with the global industry qualification requirements.

Development of a training cluster - SAOGA has identified Cape Town as a potentially attractive location for providing a variety of specialised training courses for the regional oil and gas industry and it is currently looking at the feasibility of creating a regional centre of excellence for upstream training.

2.1.4 EMPLOYER ASSOCIATIONS

There is one employer association for the subsector called the National Petroleum Employers’ Association (NPEA). NPEA deals with all activities relating to negotiations in the oil industry at the centralised bargaining forum. The organisation was formed as a result of the creation of the National Bargaining Council for Chemical Industries and the Petroleum Subsector within its framework. The organisation is registered with Departemnt of Labour (DoL) in accordance with the Labour Relations Act. All the major petroleum companies are members of the Association21.

2.1.5 ORGANISATION FOR WOMEN IN THE OIL AND ENERGY SECTOR

Women in Oil and Energy South Africa (WOESA) was established as an non profit organisation (NPO) in March 2002 with support from the Minister of Minerals and Energy. It aims to ensure meaningful participation of women in business ventures in the oil, gas and other energy sectors. While its major focus is directed at historically disadvantaged individuals and groups, it does not exclude White women. The organisation focuses on developing a knowledge base and building capacity amongst women through education and training. It also facilitates access to business opportunities and engages in advocacy work for women by participating in drafting legislation and policies22.

2.1.6 TRADE UNIONS

19 http://www.sapia.co.za/. Accessed 20 May 2013.20 http://www.saoga.org.za/content/overview-saoga. Accessed 15 May 2013.21 http://www.neasa.co.za. Accessed 15 May 2013.22 http://www.woesa.com/. Accessed 15 May 2013.

7

The following are the main Trade Unions active in the Chemical Sector23: Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU)

General Industries Workers Union of South Africa (GIWUSA)

Solidarity

South African Chemical Workers Union (SACWU)

United Association of South Africa (UASA)

These trade unions are all active in the CHIETA structures and the first four are members of the National Bargaining Council for the Chemical Industry.

2.2 EMPLOYERS

There are 251 levy-paying companies in the Petroleum Subsector, which forms 16,3% of levy-paying companies in the Chemical Sector as a whole (see Table 2-1). Eighty-five of these companies submitted WSPs in 2011/2012; this represents a third (33,9%) of the levy-paying companies in the Petroleum Subsector. Even though the levy-paying companies in the Petroleum Subsector only forms 16,3% of levy-paying companies in the Chemical Sector as a whole, in the 2011/2012 financial year their levy contribution was 43,2% of the total levies paid in the Chemical Sector.

23 CHIETA, (2012). Five year Sector Skills Plan for the Chemical Sector: Annual update 2013-2018.

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Table 2-2 Levy-paying companies and WSP submissions according to subsector

Sub-Sector

Number oflevy-

payingcompanies %

WSPsubmissions

% of totalcompanies

in sector

% of totalcompanies

in subsector% of total levies paid

Base Chemicals 314 20.4 127 8.2 40.4 13.2Explosives 7 0.5 2 0.1 28.6 1.8Fertilisers 89 5.8 23 1.5 25.8 8.2FMCG 162 10.5 72 4.7 44.4 3.5Glass 124 8.0 19 1.2 15.3 5.4Petroleum 251 16.3 85 5.5 33.9 43.2Pharmaceuticals 131 8.5 64 4.2 48.9 12.9Speciality Chems 266 17.3 113 7.3 42.5 7.9Surface Coatings 118 7.7 60 3.9 50.8 3.5Other 80 5.2 6 0.4 7.5 0.4Total 1 542 100.0 571 37.0 100.0Source: SARS Levy data, 2011/2012; WSP data, 2011/2012.

Table 2-2 shows that more than half (59,0%) of the levy-paying companies in the Petroleum Subsector are categorised as micro (employing between 1 and 19 people), 21,1% as small (employing between 20 and 49 people), 12,4% as medium (employing between 50 and 149 people), and 7,6% as large (employing 150 and more people). Almost all (84,2%) of the large levy-paying companies submitted WSPs, while 58,1% of the medium and 47,2% of the small levy-paying companies submitted WSPs. Close to a fifth (17,6%) of micro levy-paying companies submitted WSPs.

Table 2-3 Size of levy-paying companies and companies that submitted WSPs

Petroleum Levy-paying companies WSP submissionsN % N % of levy-paying companies

Large 19 7.6 16 84.2Medium 31 12.4 18 58.1Small 53 21.1 25 47.2Micro 148 59.0 26 17.6Total 251 100.0 85 33.9Source: SARS Levy data, 2011/2012; WSP data, 2011/2012.

2.3 EMPLOYEES REPRESENTED BY THE SUBSECTOR

2.3.1 TOTAL EMPLOYMENT

Figure 2-1 below shows the total employment in the Chemical Sector. The Petroleum Subsector is the largest in terms of employment in the Chemical Sector; the subsector employs more than a quarter (28,4%) of the total workforce of the sector. The Fast Moving Consumer Goods Subsector provides employment to 15,2% of the workers, Base Chemicals to 14,4%, Pharmaceuticals 14,2% and Speciality Chemicals about 10%. The other subsectors are relatively small with only 5,3% of the workers in Surface Coating, 5,1% in Glass and 3,4% in Explosives.

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Base Chemicals 14.4% (22 466)

Explosives3.4% (5 287)

Fast Moving Consumer Goods

15.2% (23 794)

Fertilisers3.6% (5 651)Glass

5.1% (8 002)

Petroleum28.4% (44 371)

Pharmaceuticals 14.2% (22 100)

Speciality Chemicals9.9% (15 381)

Surface Coatings5.3% (8 261)

Other0.5% (786)

Figure 2-1 Employment in the Chemical SectorSource: WSP submissions, June 2012.

Figure 2-2 reports that almost all (94,6%) of the 44 371 workers in the Petroleum Subsector are in permanent positions. Approximately 3% are temporary and 2% are contract workers.

Contractor2.0% (884)

Permanent94.6% (41 972)

Temporary,3.4% (514)

Figure 2-2 Employment type

Source: WSP submissions, June 2012.

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2.3.2 EQUITY PROFILE

Race and genderFigures 2-3 and 2-4 show the race and gender distribution of workers in the Petroleum Subsector. Just more than half (52,2%) of the workers are African, 32,6% are White, and about 7% Indian and Coloured respectively. In terms of gender, just more than three quarters (76,3%) are male.

African 52.2% (23 173)

Coloured7.4% (3 289)

Indian7.8% (3 445)

White32.6% (14 464)

Figure 2-3 Race distribution of workers in the Petroleum Subsector

Source: WSP submissions, June 2012.

Female23.7% (10 524)

Male76.3% (33 846)

Figure 2-4 Gender distribution of workers in the Petroleum Subsector

Source: WSP submissions, June 2012.

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Annexure 1 provides detailed information on the race and gender distribution across the different occupational categories. Whites are in the majority in managerial positions (54,1%). A relatively large percentage (43,3%) of professionals are also White. Nearly all the plant and machine operators and assemblers (88,2%) and workers in the elementary occupations (82,6%) are African. Almost three quarters (72,1%) of service and sales workers and just over half of technicians and associate professionals, and skilled and trade workers respectively are African (53,4% and 51,6%). Males are in the majority in all the occupational categories except for clerical support where females represent more than half (54,2%) of the workers in the category.

The representativeness and progress of women are directed and followed by the LFC and WOESA. Figure 2-5 shows that a quarter (21,6%) of all female employees in the Chemical Sector work in the Petroleum Subsector. Of this contingent (10 542) 42,5% are African and 37,7% are White (Figure 2-6).

0.0

5.0

10.0

15.0

20.0

25.0

Perc

enta

ge

Figure 2-5 Distribution of females in the Chemical Subsectors

Source: WSP submissions, June 2012.

African, 4 475

42.5%

Coloured, 1 117 10.6%

Indian, 9709.2%

White, 3 962

37.7%

Figure 2-6 Distribution of females according to race in the Petroleum Subsector: March 2012

Source: WSP submissions, June 2012.

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Close to two thirds (64,7%) of women in the Petroleum Subsector work as managers, professionals, and as technicians and associate professionals. This shows that women in the Petroleum Subsector are highly qualified (Figure 2-7).

Manage

rs

Profes

- sionals

Techni- c

ians &

associa

te profes

- sionals

Clerica

l support w

orkers

Servic

e & sa

les w

orkers

Skilled

& trad

e worke

rs

Plant &

mach

ine opera

tors

Elemen

t- ary

occupa-

tions

Learn

ers0.0

5.0

10.0

15.0

20.0

25.0

30.0

Perc

enta

ge

Figure 2-7 Gender distribution according to occupational category: March 2012

Source: WSP submissions, June 2012.

Disability

There were 892 employees with disabilities working in the Chemical Sector as a whole. This equates to 0,6% of all employees in the sector. Figure 2-8 below displays the proportion of disabled employees by subsector. The proportion of disabled employees in the Petroleum Subsector is 0,6%.

Stakeholders noted that it is difficult to employ disabled people (depending on their disability) in certain occupations, due to health and safety requirements. It is particularly difficult in key production occupations. However, participants in the workshops conceded that more effort needs to be made to identify those occupations in which people with disabilities can be employed and to recruit people with disabilities into these occupations.

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Base Chem

icals

Explosiv

esFM

CG

Fertilise

rsGlas

s

Petroleu

m

Pharmace

uticals

Speci

ality

Chemica

ls

Surfa

ce Coati

ngsOther

0.0

0.2

0.4

0.6

0.8

1.0

1.2

0.7

0.9

0.3

0.4

1.1

0.6

0.5

0.6

0.4

0.25

Perc

enta

ge

Figure 2-8 Percentage employees with disabilities per subsector: March 2012

Source: WSP submissions, June 2012.

2.3.3 EDUCATIONAL QUALIFICATIONS

Information about the educational levels of the Petroleum workforce is regrettably not comprehensive (educational levels for 30,0% of the employees were undefined in the 2011/2012 data). However, based on the information that is available almost half (48,0%) of the workers hold qualifications higher than NQF Level 4. This is an indication of the nature of the subsector; a large contingent of highly qualified people is employed in the subsector. A further 37,3% of workers hold qualifications at NQF Level 4, while only 10,9% hold qualifications between NQF Level 1 to 3 and a low 3,8% below NQF Level 1.

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Table 2-4 Highest educational qualifications of workers in the Petroleum Subsector: March 2012

Highest qualification N %Below NQF Level 1 1 195 3.8

NQF Level 1 523 1.7

NQF Level 2 2 022 6.5

NQF Level 3 842 2.7

NQF Level 4 11 640 37.3

NQF Level 5 2 486 8.0

NQF Level 6 3 481 11.2

NQF Level 7 4 438 14.2

NQF Level 8 1 773 5.7

NQF Level 9 2 520 8.1

NQF Level 10 262 0.8

Total 31 182 100.0

Undefined 13 190 29.7Total subsector employment 44 372

Source: WSP submissions, June 2012.

The WSP data did not include the qualifications of more than a quarter (29,7%) of the workers. In order to get some sense of what their qualifications could be, an analysis was done of the occupations in which these workers are employed. Table 4-1 shows the distribution of these workers across the occupational categories. Over a quarter (26,4%) are technicians and associate professionals, while almost a fifth (17,7%) are professionals and 15,5% are plant and machine operators and assemblers. Close to 10% are managers, clerical support workers and workers in elementary occupations respectively.

Table 2-5 Occupational category of workers with undefined qualifications in the Petroleum Subsector

Occupational category of undefined qualifications N %Managers 1 301 9.9

Professionals 2 340 17.7

Technicians and associate professionals 3 480 26.4

Clerical support workers 1 210 9.2

Service and sales workers 258 2.0

Skilled agricultural, forestry, fishery, craft and related trades workers 634 4.8

Plant and machine operators and assemblers 2 047 15.5

Elementary occupations 1 194 9.0

Learners 717 5.4

Occupation not mentioned 8 0.1

Total 13 189 100.0

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Source: WSP submissions, June 2012.

2.3.4 AGE

The average age of all workers in the Petroleum Subsector is 41 (Table 2-5). Plant and machine operators and assemblers, and managers are the oldest contingents of workers in the subsector; the average age of plant and machine operators and assemblers is 46 and managers 45. The average age of elementary workers is 41. More than a tenth (13,9%) of plant and machine operators and assemblers are close to retirement (between the ages of 55 and 60) and a tenth of managers (10.6%) and workers in elementary occupations (10,9%) respectively. Almost a tenth (8,2%) of skilled agricultural, forestry, fishery, craft and related trades workers are also going to retire over the next five years. The subsector needs to plan for the replacement of the future retirees sufficiently.

16

Table 2-6 Occupations by age in the Petroleum Subsector

Occupations

Age groups

Total Average age

Close to retirement (55-

60)15-24 25-34 35-44 45-54 55-64 65+

N % N % N % N % N % N % N % N %

Managers 37 0.7 770 14.5 1 721 32.5 1 669 31.5 1 038 19.6 62 1.2 5 298 100.0 45 562 10.6

Professionals 136 1.7 2 594 33.3 2 532 32.6 1 524 19.6 928 11.9 65 0.8 7 777 100.0 40 569 7.3

Technicians and associate professionals 549 4.4 4 282 34.1 3 289 26.2 2 747 21.8 1 605 12.8 102 0.8 12 573 100.0 40 789 6.3

Clerical support workers 112 3.0 1 297 35.0 1 000 27.0 763 20.6 479 13.0 50 1.3 3 701 100.0 40 263 7.1

Service and sales workers 38 5.4 242 34.6 200 28.7 152 21.8 55 7.9 11 1.6 698 100.0 39 36 5.1

Skilled agricultural, forestry, fishery, craft and related trades workers 254 5.3 1 669 34.9 1 071 22.4 1 030 21.5 729 15.2 35 0.7 4 789 100.0 40 392 8.2

Plant and machine operators and assemblers 59 1.2 774 16.2 1 239 26.0 1 589 33.3 1 020 21.4 86 1.8 4 767 100.0 46 665 13.9

Elementary occupations 170 4.9 1 053 30.4 823 23.8 837 24.2 535 15.5 45 1.3 3 463 100.0 41 376 10.9

Learners 353 27.4 710 55.1 148 11.5 51 4.0 27 2.1 0 0.0 1 290 100.0 29 25 1.9

TOTAL 1 708 3.9 13 391 30.2 12 023 27.1 10 362 23.4 6 416 14.5 456 1.0 44 356 100.0 41 3 677 8.3

Source: WSP submissions, June 2012.

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2.4 CONCLUSION

Even though only 16,3% of levy-paying companies in the Chemical Sector fall in the Petroleum Subsector, the subsector contributes 43,2% of the total levies paid in the Chemical Sector. The subsector has linkages with a range of other industries such as transport and storage, wholesale and retail, safety and security, engineering and industries in the environmental field.

The Petroleum Subsector employs people with high levels of qualifications and skills - almost half (48,0%) of the workers hold qualifications higher than NQF Level 4. The demographic profile of the subsector shows that just more than half of the workers are African and about a third are White. Whites are in the majority in managerial positions and are relatively over-represented in professional positions. Males are in the majority in all the occupational categories, except for clerical support workers where females represent more than half of the workforce.

The average age of workers in the subsector is 41. Plant and machine operators and assemblers, and managers are the oldest contingents of workers in the subsector with average ages of 46 and 45 respectively. Almost a tenth of workers in the subsector are going to retire over the next five years.

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3 ECONOMIC GROWTH AND FACTORS IMPACTING ON THE SUBSECTOR

This section looks at the economic performance of the Chemical Subsector as a whole as well as the Petroleum Subsector in particular. It also provides information on the factors that impact on the industry ranging from legislation and policies to transformation and technological development.

3.1 ECONOMIC GROWTH

The global chemical industry has grown with output valued at USD171 billion in 1970 to USD4.12 trillion in 2010. Projections show that the industry will follow global GDP in the next couple of years. The expectation is that by 2020 developing countries will be responsible for almost a third (31%) of global chemical production. Annual chemical production growth rates for Africa and the Middle East are predicted to be just over 6% per year through 2013, and over 5% per year from 2014 to 2021 24.

In Africa the chemical industry is well established in northern African countries such as Algeria, Egypt, Libya, Morocco and Tunisia. Nigeria is the primary producer and user of chemicals in West Africa. Although the South African Chemical Sector (including Petrochemicals) produces only 1% of the total global market’s consumption, it is the largest of its kind in Africa. The Chemical Sector is of considerable significance to the South African economy and a key constituent of the country's industrial base. Locally it contributes 4,5% of GDP and employs approximately 156 000 people. In 2011 petroleum, chemical products, rubber and plastic products contributed ZAR318 million to the GDP. This forms 23% of total manufacturing sales25.

Figure 3-1 below reports the average percentage change in gross value added (GVA) over five-year periods from 1970 to 2010 in comparison with the total Petroleum, Chemicals and Glass Sector, as well as the total economy. It also shows the projections up to 2020. It seems that there was much fluctuation in the Coke and Refined Petroleum Subsector figures over the years with negative figures in the 1970-1975 and 1985-1990 periods. The projected figures show an average of 11,3% growth for the 2010-2015 period and an average decrease of 4,7% for the 2015-2020 period. Industry stakeholders said, however, that they believe that the growth figures are underestimations when the following factors are considered:

24 United Nations Environment Programme. (2013). Global Chemicals Outlook - Towards Sound Management of Chemicals. UNEP: www.unep.org.25 Statistics SA. 2012.

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1970

-197

5

1975

-198

0

1980

-198

5

1985

-199

0

1990

-199

5

1995

-200

0

2000

-200

5

2005

-201

0

2010

-201

5

2015

-202

0

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Coke & refined petroleum products Total petroleum, chemicals & glassTotal economy

Figure 3-9 Average percentage change in Gross Value Added: 1970-2020

Source: Quantec , July 2013.

Within the borders of South Africa upstream oil and gas activity has strong growth potential over the next decade. There are significant opportunities specifically in the Orange River Basin off South Africa’s northwest coast and the exploration of onshore shale gas in the Karoo26 27. The growth of the petroleum industry outside of the borders of South Africa provides a huge opportunity for South Africa to become a major role-player in supplying services related to logistics, repair and maintenance. It is foreseen that South Africa can become a hub in this regard for the sub-Saharan region28.

Government and other stakeholders in the chemical field expect an increase in demand from South Africa's main export markets, particularly from the traditional trading partners from the developed world29. The dti has also committed itself to contribute substantially towards the identification of key export markets, the development of common standards for the classification of chemicals in the SADC, and an improvement in the trade balance by building new areas of export30.

Other developments in the Petroleum Subsector that will contribute to growth are the following:

Project Mthombo – this is a PetroSA initiative to build a new world-class crude refinery in the Coega Industrial Development Zone in the Eastern Cape. At this stage the establishment of the refinery is scheduled for the period between 2018 and 2020.

The Clean Fuels Initiative, which will introduce new cleaner fuel standards by July 2017. The proposed Durban dig-out port (DDOP), which is expected to be Africa’s largest deep-

water container terminal31.

26 Petroleum and Base Chemicals stakeholder workshop, 21 June 2013.27The dti. (2013). Industrial Policy Action Plan 2013/14-2015/16: Economic sector and employment cluster, 2013.28 Ibid.29 Ibid.30 Ibid.31 Moodley, S. (2013). Engineering News Online. Future projects will grow KZN concrete-flooring market (19 July 2013).

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The establishment of an Industrial Development Zone (IDZ) in Saldanha Bay.

3.2 FACTORS THAT IMPACT ON THE SECTOR

3.2.1 LEGISLATION AND REGULATIONS

The liquid fuels industry is, because of its strategic nature, subject to strict government regulation. The industry is mainly regulated by the Department of Energy. The National Energy Regulator of South Africa (NERSA) is specifically responsible for regulating the petroleum pipelines industry in accordance with the provisions of the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003).

Currently there are licensing requirements and regulations pertaining to aspects such as the following32:

Importation and exportation of crude oil.

Importation and exportation of petroleum products.

Importation and exportation of blending components.

Operation of petroleum pipelines, including setting of tariff structures.

Operation of storage facilities and loading facilities, including approval of tariff structures.

Manufacturing of petroleum products.

Wholesale of fuels.

Retailing of fuels, including the pump price of petrol by grade and location.

Recovery of transport costs.

Liquefied petroleum gas refinery gate price.

Retail price for illuminating paraffin.

Retail and wholesale margins.

Petroleum products specifications and standards.

Some of the key Acts that govern the petroleum industry in South Africa are:

The Petroleum Products Act No. 120 of 197733

The Act provides for the following: site licences, retail licences and general provisions. The Act ensures that measures are in place for the saving of petroleum products and the economy in the cost of distribution, as well as for the maintenance and control of price. It also provides for the furnishing of certain information regarding petroleum products and for the rendering of service of a particular kind or service of a particular standard in connection with petroleum products.

The Act further provides for the licensing of persons involved in the manufacturing, wholesaling and retailing of prescribed petroleum products, the promotion and transformation of the South African petroleum and liquid fuels industry, and provision for the promulgation of regulations relating to such licences.

The Act was amended in 2003 and again in 2005.

32 http://www.sapia.co.za/industry-overview/economic-regulation.html. Accessed 1 June 2013.33 Government of South Africa, Petroleum Products Act. 120 of 1977.

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Central Energy Fund Act No. 38 of 197734

The Act provides for the determination of state levies. It provides for: the payment of certain moneys into the Central Energy Fund (CEF), and the utilisation and investment thereof; the imposition of a levy on fuel and the utilisation and investment thereof; the control of the affairs of CEF (Proprietary) Limited by a board of directors; the keeping of records of all transactions entered into for account of the CEF or the Equalisation Fund and of certain other transactions; the investigation, examination and auditing of the books, accounts and statements kept and prepared in connection with the said transactions; and the submission to Parliament of a report relating to the said investigation, examination and auditing.

National Energy Regulator Act No. 40 of 200435

The Act provides for the establishment of a single regulator (to regulate the electricity, piped-gas and petroleum industries). The regulator is called the National Energy Regulator of South Africa (NERSA).

Petroleum Pipelines Act No.60 of 200336

The Act provides for the following: to establish a national regulatory framework for petroleum pipelines; and to establish a Petroleum Pipelines Regulatory Authority as the custodian and enforcer of the national regulatory framework. NERSA is responsible for regulating the petroleum pipelines industry in accordance with the provisions of this Act.

Gas Act No. 48 of 200137

The Act aims to promote the orderly development of the piped gas industry; to establish a national regulatory framework; and to establish a National Gas Regulator as the custodian and enforcer of the national regulatory framework.

Petroleum Pipelines Levies Act No.28 of 200438

The Act provides for the imposition of levies by the Petroleum Pipelines Regulatory Authority.

National Ports Act No. 12 of 200539

The Act provides to establish the National Ports Authority and the Ports Regulator; to provide for the administration of certain ports by the National Ports Authority.

National Energy Act No. 34 of 200840

The Act provides for the following: to ensure that diverse energy resources are available, in sustainable quantities and at affordable prices, to the South African economy in support of economic growth and poverty alleviation, taking into account environmental management requirements and interactions amongst economic sectors; to provide for energy planning, increased generation and consumption of renewable energies, contingency energy supply, holding of strategic energy feedstocks and carriers, adequate investment in, appropriate upkeep and access to energy infrastructure; to provide measures for the furnishing of certain data and information regarding energy demand, supply and generation; and to establish an institution to be responsible for promotion of efficient generation and consumption of energy and energy research.

34 Government of South Africa, Central Energy Fund Amendment Act No. 48 of 1994 . 35 Government of South Africa, National Energy Regulator Act No. 40 of 2004.36 Government of South Africa, Petroleum Pipelines Act No.60 of 2003 . 37 Government of South Africa, Gas Act No. 48 of 2001 . 38 Government of South Africa, Petroleum Pipelines Levies Act No.28 of 2004 . 39 Government of South Africa, National Ports Act No. 12 of 2005 . 40 Government of South Africa, National Energy Act No. 34 of 2008 .

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National Environmental Management Act No. 107 of 199841

The Act provides for co-operative, environmental governance by establishing principles for decision making on matters affecting the environment, institutions that will promote co-operative governance and procedures for co-ordinating environmental functions exercised by certain entities.

3.2.2 POLICIES AND PLANS

Since the institution of a democratic government in South Africa in 1994 several policies and plans that have a direct bearing on the Petroleum Subsector have seen the light. The most relevant of these are: The Energy Policy White Paper (1998); the Integrated Resource Plan (2010); the Integrated Energy Plan (IEP) (2003); the New Integrated Energy Plan currently under development; the Energy Security Master Plan Liquid Fuels; the National Development Plan (NDP) 2030; the Industrial Policy Action Plan (IPAP2) and IPAP 2012/2013-2013/2014; the Draft Strategic Stocks Petroleum Policy and the Draft Strategic Stocks Implementation Plan.

The DoE is in the process of finalising a new IEP for South Africa, which will lay out the provision of all energy sources in the country up to 2050. The IEP will incorporate other plans such as the new Liquid Fuels Master Plan, the Gas Infrastructure Plan and the Integrated Resource Plan for 2010 (IRP 2010). Both the IEP and the NDP emphasise the need for a greater mix of energy sources to meet future demand.

In terms of transformation the Petroleum Subsector is the only subsector within the Chemical Sector, which is subject to a transformation charter - called the Petroleum and Liquid Fuels Charter (LFC) of 2000. This is discussed in Section 3.3.4.

The Energy Policy White Paper (1998)

The Energy Policy White Paper, published in 1998, served as the base for most of the plans and acts that followed to oversee the Petroleum Subsector. The white paper addressed the following matters42:

Achievement of an efficient and internationally competitive industry.

Availability of quality products throughout the country at internationally competitive and fair prices within appropriate health, safety and environmental standards.

Equitable balance between the interests of participants and consumers; creating an industry supportive of the Government’s broader social and economic goals.

Restructuring the State’s involvement in the industry in context of South Africa’s changed political and economic circumstances.

Optimum and efficient utilisation of liquid fuels.

Meaningful inclusion of those who have been historically excluded.

Black economic empowerment in the composition of the industry at all levels and significant domestic black ownership or control in all facets of the petroleum value chain.

Adequate provision for national strategic considerations relating to security of supply.

The creation of an efficient network of pipeline and storage infrastructure, while ensuring no abuse of market power and/or restrictive practices.

41 Government of South Africa, National Environmental Management Act No. 107 of 1998.42 Department of Minerals and Energy. White Paper on the Energy Policy of the Republic of South Africa, 1998.

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The preservation and promotion of formal sector employment; phasing in managed liberalisation or deregulation of the industry.

Integrated Resource Plan (IRP 2010)

The primary objective of the IRP 2010 was to determine the long-term electricity demand and how the demand should be met in terms of the following: generating capacity, type of capacity, timing and cost. However, the DoE stated that the IRP 2010 also serves as an input to other planning functions such as economic development, funding, and environmental and social policy formulation. For example, the IRP speaks to an affordable price for electricity, a move to a more sustainable and efficient economy, the possibility to create local jobs, the demand on scarce resources such as water, and the need to meet national emissions targets in line with global commitments 43. The DoE sees the IRP 2010 as a “living” plan, which is updated on an ongoing basis to take changing needs of South Africa into consideration44. The new IEP incorporates the IRP (2010).

The IRP 2010 indicates Government’s intention to further increase the role of natural gas in the energy mix. This is in line with the National Planning Commission’s (NPC’s) National Development Plan (NDP), which supports South Africa’s exploration of gas as an alternative to coal for energy production45.

The Integrated Energy Plan (IEP) 2003

The IEP of 2003 outlined inter alia the following:

Diversification of energy supply through increased use of natural gas, and new and renewable energies.

Continuing investigations into nuclear options as a future new energy source.

Promoting the use of energy efficiency management and technologies.

Lessening reliance on imported liquid fuels by exploring and developing oil and gas deposits.

Increasing existing oil refineries’ capacity when appropriate, rather than greenfields development.

Continuing with existing synfuel plants and supplement with natural gas as feedstock.

Ensuring environmental considerations in energy supply, transformation and end use.

Promoting universal access to clean and affordable energy, with emphasis on household energy supply being co-ordinated with provincial and locally integrated development programmes.

Introducing policy, legislation and regulations for the promotion of renewable energy, energy efficiency measures and mandatory provision of energy data.

Undertaking integrated energy planning on an ongoing basis.

The new IEP is currently under development.

Energy Security Master Plan - Liquid Fuels

The Energy Security Master Plan for liquid fuels, which outlines the South African Government’s plan to secure the availability of affordable energy from liquid fuels, was approved in August 2007 by Cabinet.

The intended outcomes of the Energy Security Master Plan Liquid Fuels are to46:43 DoE. Executive Summary of the Integrated Electricity Resource Plan for South Africa ‐ 2010 to 2030.44 DoE Strategic Plan, 2011/2012-2015/2016. 45 Moolman, S. (2013). Engineering News Online. Plans afoot to increase the role of gas in SA’s energy mix. 31 May 2013.46 DME. Energy Security Master Plan - Liquid Fuels.

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In the short term, secure adequate supplies of affordable energy for continued economic growth and development;

In the medium term, enable policy-makers and decision-makers to make informed decisions on these complex interdependent energy outcomes; and

In the long term, ensure that the strategic planning and subsequent growth and development are sustainable.

The long-term approach strives to integrate supply, demand, macroeconomics, geopolitics and climate change. It further seeks to allow for the making of well-informed choices in respect of energy supply, energy carriers, demand sector strategies, and energy transformation approaches and ways to minimise negative impacts on the environment.

Some of the proposed strategic options in the Master Plan are the following47:

Promotion of the local production of finished petroleum products and specifically the promotion to manufacture at least 30% of finished products from indigenous raw materials.

Incorporation of climate change in the energy modelling process.

Producing 30% of all crude oil consumed in South Africa through PetroSA.

Promoting local production of liquid fuels through a policy of limited imports.

Promoting energy efficiency in all energy consuming sectors of the economy.

Considering an “independent energy planning coordinator” in order to co-ordinate planning of infrastructure investments.

Building of an integrated pipeline.

Recommending block trains to improve Spoornet’s turnaround time.

Addressing the challenges identified at ports.

Developing an integrated energy modelling capability, which should be instrumental in the development of energy plans and evaluation of options that are proposed by policy-makers.

The Master Plan states that there are essentially two possible approaches to achieving energy security, i.e. market signalling or central energy planning. The central planning or co-ordination approach is recommended in the South African context48.

47 DME. Energy Security Master Plan - Liquid Fuels.48 DME. Energy Security Master Plan - Liquid Fuels.

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National Development Plan 203049

South Africa’s over-dependence on coal for its energy requirements and the resulting unacceptably high greenhouse gas emissions, poses one of the country’s biggest challenges. It is this challenge and the necessity of a transition to a low-carbon economy that feature prominently in the National Development Plan 2030 - “Our future – make it work”. Both this plan and the Integrated Resources Plan 2010 – 2030 of the DoE emphasise the need for a greater mix of energy sources to meet our future demand. Consideration in energy supply options over the next two decades need to take into account a reduction of carbon emissions, reversing environmental degradation, uncertainties relating to technological development, water scarcity, job creation and poverty reduction, and security of supply.

The National Development Plan 2030 highlights several aspects of pertinence, which impact directly on the future of the petrochemical industry. These include among others the need to explore gas as an alternative to energy production, in order to cut South Africa’s carbon intensity and greenhouse gas emissions; exploration of the shale gas potential of the Karoo; further exploration for and exploitation of newly discovered off-shore gas resources along the west coast; the need to invest in a liquefied natural gas infrastructure; upgrading of existing refineries to migrate to international clean fuel standards; and consideration of building a new refinery, i.e. Petro SA’s Mthombo Project to reduce dependence on the import of refined products.

(IPAP2) and IPAP 2013/14-2015/16

The Industrial Policy Action Plan 2013/14-2015/16 emphasises the upstreaming of oil and gas services and equipment in South Africa. The current competence and activity in upstream services and supply are inter alia in the following areas: ship repair; oil and gas logistics and distribution; engineering services; equipment and materials suppliers; and general and technical support services. Key areas where there are immediate opportunities for growing the sector include the following: scaling up the upstream ship repair hub in the Western Cape and KwaZulu-Natal; marketing South African companies and capabilities in the region; and the growth of the oil and gas logistics industry. The plan flags the underinvestment by the National Ports Authority in infrastructure, availability of port space, inconsistent and high pricing of facilities, poor scheduling of facilities and a general lack of collaboration and engagement with the industry to resolve issues, as major constraints. The task of unlocking theses constraints was assigned to the dti.

The Draft Strategic Stocks Petroleum Policy and the Draft Strategic Stocks Implementation Plan

The Draft Strategic Stocks Petroleum Policy and the Draft Strategic Stocks Implementation Plan have been published by the DoE in the Government Gazette for public comment. Both the policy and plan are published in terms of section 17 of the National Energy Act of 2008. The policy sets out the framework for the storage of fuel stocks by both Government and oil companies. It aims to ensure uninterrupted supply of petroleum products throughout South Africa, by providing adequate strategic stocks and infrastructure such as storage facilities and pipeline capacity50.

The implementation plan speaks to the implementation of the policy. It shows that new storage facilities will have to be constructed or under-utilised tanks rented. The plan requires of manufacturers and wholesalers from July 2014 to hold 14 days of refined petroleum products as strategic stocks. The plan further recommends that storage facilities should be placed close to markets. If new facilities are required, companies will be given three years to build them51.

49 National Planning Commission. (2013). National Development Plan.50 DoE. (2013). Draft strategic Stocks Petroleum Policy and the Draft Strategic Stocks Implementation Plan, 2013. 51 Ibid.

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3.2.3 CRUDE OIL IMPORTS

South Africa has very limited crude oil reserves or resources and the oil refineries are mainly dependent on crude oil imports. In fact, most of the oil feedstock is imported from countries such as Iran, Saudi Arabia, Nigeria, Angola and Oman52. This makes the country very vulnerable with regard to any decrease in world oil exports. International oil exports (and the availability of crude oil to South Africa) could be influenced by several factors, for example: continuing rise in domestic oil consumption in oil exporting countries; depletion of reserves and production in some oil exporting countries; wars, conflict and political uncertainty in oil exporting countries; sanctions on oil exports from Iran (South Africa cut all crude oil imports from Iran in June 2012); and the increase in the demand for oil from China53.

3.2.4 FUEL PRICING

DoE fixes the retail price of fuel in South Africa, taking international and domestic elements into consideration. The Basic Fuel Price (BFP) comprises about half of the retail price of fuel and varies from month to month.

The BFP is quoted in USD per barrel or USD per ton. It is converted to US cents per litre by applying the international conversion rates (for example, barrels to tons, tons to gallons and gallons to litres). It is then converted to South African cents per litre by applying the applicable ZAR/USD exchange rate. To determine the final petrol pump price in the different fuel pricing zones (magisterial district zones), aspects such as domestic costs, imposts, levies and margins are added to the BFP.

The following international influences have an effect on the domestic BFP54: Increase in crude oil prices.

International demand and supply balances.

The ZAR/USD exchange rate.

Free on Board (FOB) values - prices from fuel refineries in Singapore and the Mediterranean Sea region, which produce products of a similar quality to local specifications.

Freight cost - the cost to transport refined petroleum products from export refining centres to South African ports.

Demurrage – demurrage cost refers to the charges that the charterer pays to the shipowner for its extra use of the vessel.

Insurance – insurance entails an element of 0.15% of the FOB-value and freight to cover insurance, as well as other costs such as letters of credit, surveyors' and agents' fees and laboratory costs.

Ocean loss - the loss allowance factor of 0.35% to be calculated on the sum of the FOB to provide for typical uninsurable losses during transportation of fuels.

Cargo dues (Wharfage) – the cost to utilise off-load of petroleum products from ships into on-shore storage facilities (tariffs are set by the National Ports Authority of South Africa).

Coastal storage – recovering of the cost of storage provision at coastal terminals.

Stock financing – this cost is based on the landed cost values of refined petroleum products and 25 days of stockholding.

52 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.53 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.54 http://www.energy.gov.za/files/petroleum_frame.html. Accessed 29 May 2013.

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The domestic element of the retail fuel price consists of local costs such as taxes and levies. Domestic fuel taxes and levies account for about 30% of the final pump price, while retail margins and transport costs account for about 20% of the price55. The domestic components of the retail fuel price are determined once a year and include aspects such as Inland transport cost, wholesale margin and retail profit margin56. The BFP has been in place since April 2003. The DoE has subsequently reviewed the BFP mechanism in order to investigate if the elements or components that determine the BFP remain valid. This review was to be completed in 2012.

3.2.5 REFINERY CAPACITY

PetroSA stated that the national demand for refined fuels already exceeds South Africa’s refining capacity and demand is going to increase even further. Diesel consumption is forecast to grow at 4.5% per year and petrol consumption at 1% per year between 2012 and 2020. The company estimated that by 2020 South Africa will have to import about 180 000 bbl/d of petrol and diesel to meet the demand. However, importing refined fuel will have a negative impact on the country’s foreign exchange reserves and usually causes national supply to be vulnerable to external factors. The only way to address this challenge is to invest in local refining capacity57. SAPIA has already stated in 2012 that oil refiners and Government will have to make the decision to increase local refining capacity either through upgrades or expansions to existing refineries or through the building of new refineries58.

To this end the South African Government has introduced the Energy Security Master Plan - Liquid Fuels, which calls on PetroSA to provide strategic leadership to achieve security of supply . PetroSA conducted a feasibility study in 2010 at the Coega Industrial Development Zone outside Port Elizabeth in the Eastern Cape and recommended that a new refinery should be developed 59. As mentioned earlier in this report, the development of an additional crude oil refinery, known as Project Mthombo, is currently being considered60.

All the refineries have been expanded and upgraded in preparation of the fuel specifications implemented in January 2006 and the refineries are currently again in the process of preparing for additional upgrades ahead of further fuel specification enhancements (cleaner fuels), which will come into effect in 201761. The benefit of upgrading and expanding existing refineries is not only to increase fuel production capacity, but also the output of petroleum by-products such as bitumen (bitumen is used in road construction and is often in short supply in South Africa). The upgrades also create short-term employment during the construction phase and longer term employment as the upgraded or expanded refineries will need additional capacity62.

55 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.56 http://www.energy.gov.za/files/petroleum_frame.html. Accessed 29 May 2013.57 http://www.petrosa.co.za/building_futures/Pages/Project-Mthombo.aspx. Accessed 31 May 2013.58 Kotze, C. (2013). Engineering News Online. New Sapia chairperson highlights focus areas for 2013. 22 March 2013. http://www.engineeringnews.co.za/article/new-sapia-chairperson-highlights-focus-areas-for-2013-2013-03-22 . Accessed 30 March 2013.59 Ibid.60 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.61 Ibid.62 Kotze, C. (2013). Engineering News Online. SA will need extra oil refining capacity in future – SAPIA. 7 September 2012. http://www.engineeringnews.co.za/article/no-doubt-sa-will-need-extra-oil-refining-capacity-in-future-sapia-2012-09-07. Accessed 30 May 2013.

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3.2.6 LOGISTICAL INFRASTRUCTURE

Most transport fuel in South Africa is produced in the coastal areas and about 68% of it is consumed in the inland Gauteng region63. Petroleum products are moved from refineries by pipelines, rail, sea and road to approximately 200 depots, 4 600 service stations and 100 000 direct consumers, who are mostly farmers64. Transnet Pipelines, formerly known as Petronet, provides and maintains the inland petroleum and gas pipelines of approximately 3 000 km that runs through five provinces.

A major issue is sufficient pipeline capacity and additional fuel pipeline capacity is needed to ensure South Africa’s liquid fuel supply security. A development in this regard is Transnet’s new multi-product pipeline (NMPP) that will run from Durban to Johannesburg.

Other initiatives to improve South Africa’s liquid fuels logistics capacity are the following65:

A proposal by the Strategic Fuel Fund (SFF), which manages the country’s strategic inventory of crude oil on behalf of the State, to develop and operate a petroleum storage facility and associated pipeline adjacent to the Milnerton terminal to store crude oil.

A project to construct South Africa’s largest LPG storage facility is expected to start in early 2013. The plant will be situated adjacent to the port of Saldanha Bay and will be operational by 2014.

3.2.7 CLEANER FUEL

The petroleum industry faces several significant challenges pertaining to environmental impact. Reducing the level of harmful emissions from motor vehicles is a critical issue for the subsector. Efforts are being made to improve the quality of the liquid fuels being used to reduce the environmental impact of the sector. In January 2006, new fuel specifications came into effect in South Africa, prohibiting the addition of lead to all grades of petrol and reducing the allowable level of sulphur in diesel from 3 000 parts per million (ppm) to 500 ppm66 67.

A discussion document on the review of fuel specifications and standards for South Africa was released in March 2011 and amendments to the regulations regarding petroleum products specifications and standards were published in May 2012. The DoE aims to have the new cleaner fuels standards introduced by July 2017. The National Association of Automobile Manufacturers (Naamsa) is supporting the DoE in this regard by endorsing the products of those oil companies who are prepared to supply the cleaner fuel before 201768.

Two of the country’s crude oil refineries also showed their intention to prepare for the implementation of the cleaner fuels specifications. Sapref indicated that it will modify several of its existing units and build two new processing plants and Sasol has indicated that it will upgrade the Natref refinery to meet the requirements for the production of cleaner fuel69.

63 South Africa Yearbook 2011/2012 – Energy.64 http://www.sapia.co.za/industry-overview/fuel-industry.html . 65 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.66 Ibid.67 Kotze, C. (2013). Engineering News Online. New Sapia chairperson highlights focus areas for 2013. 22 March 2013. http://www.engineeringnews.co.za/article/new-sapia-chairperson-highlights-focus-areas-for-2013-2013-03-22. Accessed 30 March 2013.68 Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.69 Ibid.

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3.2.8 SCIENTIFIC BASE AND DEPENDENCE ON RESEARCH AND DEVELOPMENT

R&D or innovation is key to securing the future of the chemical industry in any country. Many of the challenges faced by the chemical industry affect economic activity and society as a whole, and relate to various manufacturing activities. In the Chemical Sector, and very much so in the Petroleum Subsector, R&D is indispensable to overcome challenges, to benefit from related opportunities, and to ensure the further growth and success of the industry.

R&D concerns new products, but can also be based on new applications, new services or new processes. As regards global trends, while R&D intensity in the European chemical industry has shown a slight overall decrease during the last decade, some emerging countries have strongly increased their efforts with notable success. In South Africa, corporate R&D is more concentrated in large companies. Companies that are involved in R&D know that reducing the time to bring innovations to market is essential to success. In addition, unique and specialised skills sets are required in the R&D environment.70

3.2.9 GLOBAL INTEGRATION

As indicated in the previous sections, the Petroleum Subsector is in various ways integrated in and influenced by international economic trends and markets. Many of the feedstocks are imported, and in many respects the South African industry is bound to international quality, safety and environmental standards.

Several of the major role players in the subsector are multi-national companies. Multi-national companies have to adhere to accounting and administrative practices that satisfy the local legislative requirements, as well as those of their mother companies and the countries where they are located. In some instances it even leads to companies keeping two accounting systems – one based on the South African Rand and another in US dollars or Euros. This in turn has an impact on the skills needed by those companies71.

Staffing and human resources development are complex in the international environment. International companies have to ensure that their staff are adequately equipped to implement international business strategies. They also have to overcome shortages of skilled managers and professionals, particularly in emerging markets and they need to train their staff to be sensitive to cultural differences in the workplace and marketplace.

South African operations of multi-nationals have to adhere to the training requirements and standards prescribed by their mother companies. In most instances these programmes are not accredited in South Africa and for this reason the companies cannot claim any grants for this training72.

The sector is dependent on advanced technological training that is not available locally. This training has to be procured at very high cost.

3.2.10 OFFSHORE OPERATIONS

Some of the activities in the Petroleum Subsector entail the exploration and extraction of oil and gas at offshore sites. The offshore operations usually require people with certain sets of skills, in order to comply with the working conditions on an oil or gas rig (for example to work in confined spaces).

70 Petroleum and Base Chemicals stakeholder workshop, 21 June 2013.71 Ibid.

72 Ibid.

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Safety is a very important aspect and workers on the rigs have to receive offshore safety and survival training. Some of the special skills required for certain workers (such as safety inspectors) are industrial abseiling or abseil-rope access (also called “Height Access Technology”). People have to undergo a high degree of training and the trainees have to be certified, which means that they have to pass examinations. Key elements of such training include team work, and health and safety aimed at avoiding accidents on the rigs.

3.2.11 TECHNOLOGICAL DEVELOPMENT

Advanced technology is extremely important in the Chemical Sector as a whole, but very specifically in the Petroleum Subsector. Continuous improvement, breakthrough and development in technology is one of the key rudiments of the subsector. The use of advanced technology has an effect not only on the quality of the skills needed to operate or apply the technology, but also on the number of people employed. New technological developments usually require that the skills of current staff need to be upgraded or new people with the relevant skills have to be recruited (these skills may not always be readily available). In some instances advanced technology can replace workers in the sector.

3.2.12 TRANSFORMATION

The Petroleum Subsector is the only subsector within the Chemical Sector which is subject to a transformation charter, called the Petroleum and Liquid Fuels Charter (LFC) of 2000. The LFC was created to achieve the policy objectives of the 1998 Energy White Paper. The LFC covers the following elements of transformation:

Ownership.

Management control.

Supportive culture.

Capacity building.

Employment equity.

Private sector procurement.

Access to infrastructure.

Refining capacity.

Retailing.

Wholesaling.

Financing.

Terms of credit.

Synfuel supply.

An audit was conducted in 2011 on the implementation of the LFC. The aim of the audit was to measure the extent of compliance as well as the effectiveness of the LFC between 2000 to 2010. The audit measured the companies against the elements mentioned in the previous paragraph. Some of the major findings were the following 73 74:

73 DoE, (2011). Petroleum and liquid fuels charter: Final audit report. http://www.energy.gov.za/files/media/Pub/PetroleumAndLiquidFuelsCharter_AuditReport.pdf. Accessed 30 May 2013. 74 Odendaal, N. (2012). Engineering News Online. Liquid fuels charter audit findings disappointing. 5 July 2012. http://www.engineeringnews.co.za/article/liquid-fuels-charter-audit-findings-disappointing-minister-2012-07-05. Accessed

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The audited companies achieved 70% compliance in terms of the BEE framework compared to a 48% compliance with the LFC.

The overall average compliance level with each element is 3.5 out of 7 companies (50%).

Since 2000 the petroleum industry achieved a black ownership level of 18.1%, as opposed to the 25% target set by the LFC.

Only one of the audited firms fully complied with the requirements of ownership by black shareholders.

Management control and ownership emerged as the two top performing elements.

Each company met the minimum requirements of ownership in their firms, but only 50% met the 25% charter target.

Capacity building or skills development, employment equity and access to infrastructure were three elements in which performance was the worst.

Technical skills transfer to HDSA’s at all levels suffered the most setback during the past 10 years.

The major difference between the LFC and BEE results was in terms of enterprise development - it is the worst performing element with the LFC, but second under BEE.

The key recommendation of the audit report was that DoE should facilitate the development of a sector code in line with the BEE framework. After the results of the audit were published, DoE established a unit with the aim to ensure that industry complies with the charter. DoE is also investigating which of the elements of the current broad-based BEE codes of good practice could be incorporated into the LFC and to identify the elements absent in both frameworks.

3.3 CONCLUSION

Indications are that the Petroleum Subsector is in a positive growth phase. This is mainly because of a mix of opportunities that relates to the expansion and adaptation (to produce cleaner fuels) of the current refining and distribution capacity, the exploration of onshore shale gas in the Karoo, the plan to build a new refinery, and the opportunity to become a major role-player in supplying services related to logistics, repair and maintenance in the sub-Saharan region.

Various factors have an impact on the subsector. Because of its strategic nature the subsector is subject to certain legislation and regulations. There are also numerous policies and plans in place in order to stimulate the subsector and to enhance its contribution to the economy of South Africa. The nature of the subsector also makes it dependent on and vulnerable to other dynamics such as crude oil imports, refining capacity, the logistical infrastructure, and environmental considerations in terms of cleaner fuel. Factors that have a more direct influence on skills relate to the global integration of the industry, offshore operations, transformation in the subsector, technological development, and research and development.

3.4

30 May 2013.

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4 THE DEMAND FOR SKILLS IN THE SUBSECTOR

This section looks at the demand for skills in the Petroleum Subsector. It shows the trends in employment as well as the occupational composition of demand in the subsector.

4.1 TRENDS IN EMPLOYMENT

The Chemical Sector in South Africa employed approximately 148 000 workers in 1970. This figure increased steadily over the subsequent two decades and reached an all-time high of almost 260 000 in 1993. Employment in the sector then declined quite rapidly over the next decade to 156 000 in 2002. Over the period 2003 to 2008 employment in the sector increased again but it dropped again from 2009 onwards. The recent reductions in employment has mainly impacted on low-skilled and semi-skilled workers, resulting in the skills mix tending towards the higher level skills. (See Figure 4-1.)

Employment in the Petroleum Subsector did not follow the same trajectory as total employment in the Chemical Sector. Employment grew steadily from 1970 to the mid-eighties. It then dropped steadily until 2002 but increased again over the last decade. Table 4-1 shows that for the period 2000 to 2010 the average percentage growth in employment in the Petroleum Subsector was higher than in the Chemical Sector as a whole. The projected growth until 2020 shows the same trend.

19701975

19801985

19901995

20002005

20102012

,0

50,000

100,000

150,000

200,000

250,000

Coke & refined petroleum products Total petroleum, chemicals & glass

Figure 4-10 Employment in the Petroleum Subsector compared to total employment in the Chemical Sector from 1970 to 2012

Source: Quantec , June 2013.

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Table 4-7 Average percentage change in employment, 1970-2020

SectorAverage % change

1970-1975

1975-1980

1980-1985

1985-1990

1990-1995

1995-2000

2000-2005

2005-2010

2010-2015

2015-2020

Coke & refined petroleum products 3.8% 6.8% 5.7% -2.2% -4.4% -9.8%

12.3% 4.1% 1.3% 2.8%

Total petroleum, chemicals & glass 3.2% 1.7% 2.3% 0.7% -1.9% -6.9% 4.7% -2.4% -0.6% -0.7%

Source: Quantec, June 2013.

4.2 THE OCCUPATIONAL COMPOSITION OF DEMAND

The occupational compositions of a subsector give a good indication of the kinds of skills needed in the subsector. Table 4-2 reports the distribution of workers across occupational categories in the Petroleum Subsector. Just more than a quarter (29,2%) are technicians and associate professionals and almost a fifth (18,1%) are professionals. The large contingent of professionals, and technicians and associate professionals is an indication of the nature of the subsector; it is a sector that employs highly qualified and skilled people. In addition, just more than a tenth (11,1%) of workers are categorised as trade workers (this category includes artisans). Managers constitute 12,3% of the workers. Just more than a tenth (11,1%) are operators and assemblers respectively. Just less than a tenth are clerical support workers (8,6%) and elementary workers (8,0%).

Table 4-8 Distribution of workers across occupational categories

Petroleum N %

Managers 5 298 12.3

Professionals 7 777 18.1

Technicians and associate professionals 12 573 29.2

Clerical support workers 3 701 8.6

Service and sales workers 698 1.6

Skilled agricultural, forestry, fishery, craft and related trades workers

4 789 11.1

Plant and machine operators and assemblers 4 767 11.1

Elementary occupations 3 463 8.0

Total 43 066 100.0

Source: WSP submissions, June 2012.

Tables 4-2 to 4-9 provides information on the type of occupations in the different occupational categories. An employment cut-off point of 10 workers was used for inclusion of occupations in the list. The different tables order the occupations from the largest to the smallest number in terms of estimated employment. Annexure 2 further lists the alternative and specialisation names of occupations that are used in the subsector.

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Table 4-9 shows the different kinds of managers that work in the subsector. Due to the nature of the subsector, it employs large numbers of production/operations managers (manufacturing) and engineering managers. Production and engineering managers, as well as some of the other managers, are often sourced from the ranks of qualified engineers – a factor that needs to be considered in any estimations of the demand for engineers in the sector.

The large number of finance managers in the subsector is explained by the fact that multi-nationals keep two sets of books, which requires much more work than in circumstances where a company is only active in one country75.

Other types of managers that work in the subsector are inter alia supply and distribution managers, programme or project managers, sales and marketing managers, quality systems managers, health and safety managers, laboratory managers, research and development managers, and importers and exporters.

Table 4-9 Managers in the Petroleum Subsector

OFO Code Managers N %

132102 Production/Operations Manager (Manufacturing) 850 16.0132104 Engineering Manager 556 10.5121101 Finance Manager 476 9.0132401 Supply and Distribution Manager 369 7.0121905 Programme or Project Manager 291 5.5122101 Sales and Marketing Manager 279 5.3121908 Quality Systems Manager 172 3.2121201 Personnel/Human Resource Manager 171 3.2121902 Corporate Services Manager 171 3.2121901 Corporate General Manager 151 2.8121206 Health and Safety Manager 148 2.8112101 Director (Enterprise/Organisation) 134 2.5122102 Sales Manager 111 2.1132202 Mineral Resources Manager 101 1.9133103 Data Management Manager 100 1.9132404 Warehouse Manager 89 1.7121202 Business Training Manager 87 1.6134902 Laboratory Manager 74 1.4122301 Research and Development Manager 57 1.1122103 Director of Marketing 57 1.1121301 Policy and Planning Manager 56 1.1134916 Operations Foreman (Non Manufacturing) 52 1.0143901 Facilities Manager 51 1.0111402 Trade Union Representative 50 0.9133105 Information Technology Manager 48 0.9122105 Customer Service Manager 46 0.9134915 Operations Manager (Non Manufacturing) 43 0.8142101 Importer or Exporter 40 0.8143904 Security Services Manager 39 0.7132403 Road Transport Manager 39 0.7

75 Petroleum and Base Chemicals stakeholder workshop, 21 June 2013.

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OFO Code Managers N %

132402 Logistics Manager 34 0.6122201 Advertising and Public Relations Manager 32 0.6132201 Production/Operations Manager (Mining) 26 0.5143905 Call or Contact Centre Manager 25 0.5132406 Railway Station Manager 21 0.4121103 Credit Manager 20 0.4134904 Office Manager 19 0.4134912 Commissioned Fire and Rescue Officer 17 0.3132405 Fleet Manager 15 0.3134201 Medical Superintendent 12 0.2121102 Payroll Manager 11 0.2133104 Application Development Manager 11 0.2134906 Practice Manager 10 0.2Source: WSP submissions, June 2012.

The Petroleum Subsector employs a range of professionals. Some of the most typical professionals that work in the subsector are the following (Table 4-4):

Engineers and Engineering Technologists.

Engineers are important in the maintenance of a chemical plant and therefore many engineers work in the subsector. Chemical engineers form the biggest component of this group. Other engineers such as mechanical, industrial, electrical and electronic engineers are also widely used. In some instances the appointment of registered professionals are required by law, for example professional engineers who are registered with the Engineering Council of South Africa (ECSA). The recruitment of such professionals is sometimes difficult as registration with ECSA is not compulsory for engineers76.

Safety, Health, Environment and Quality (SHE&Q) Practitioner.

As safety is of critical importance in the Petroleum Subsector, the subsector employs a substantial number of safety, health, environment and quality (SHE&Q) practitioners. Their main task relates to the development, implementation and reviewing of programmes and policies in order to minimise potential environmental impact and occupational risks to health and safety77.

Chemists.

In addition to chemical engineers, the knowledge and skills of chemists are also needed in the subsector.

Environmental scientists and specialists.

Due to the nature of the subsector and the environmental impact of activities in the industry, the knowledge and skills of environmental impact and restoration analysts, geo- scientists and physicists are necessary78.

Geologists.

The subsector employs geologists, as some of the activities relate to exploration of natural resources such as oil and gas, and the mining of coal.

76 Petroleum and Base Chemicals stakeholder workshop, 21 June 2013.77 OFO version 12.78 Petroleum and Base Chemicals stakeholder workshop, 21 June 2013..

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Transport Analysts.

A major activity in the subsector is the transportation of raw materials and final products. The subsector therefore employs people who work as transport analysts. Some of the key tasks of transport analysts are the implementation of central planning systems and the analysis of current and improved scenarios with regards to transport (for example to ensure the optimisation of a fleet)79.

Table 4-10 Professionals in the Petroleum Subsector

OFO Code Professionals N

214501 Chemical Engineer 1 057 13.6214401 Mechanical Engineer 483 6.2226302 Safety, Health, Environment and Quality (SHE&Q) Practitioner 475 6.1214101 Industrial Engineer 444 5.7242101 Management Consultant 424 5.5211301 Chemist 409 5.3243301 Sales Representative/Salesman (Industrial Products) 378 4.9242303 Human Resource Advisor 351 4.5241101 Accountant (General) 299 3.8242401 Training and Development Professional 299 3.8243103 Marketing Practitioner 207 2.7242209 Accounting Officer 202 2.6251101 ICT Systems Analyst 168 2.2214502 Chemical Engineering Technologist 154 2.0242402 Occupational Instructor/Trainer 144 1.9215201 Electronics Engineer 133 1.7252101 Database Designer and Administrator 129 1.7241301 Financial Investment Advisor 98 1.3214607 Petroleum Engineer 97 1.3241107 Financial Accountant 90 1.2215101 Electrical Engineer 88 1.1215202 Electronics Engineering Technologist 87 1.1214302 Environmental Impact and Restoration Analyst 85 1.1214402 Mechanical Engineering Technologist 76 1.0252201 Systems Administrator 70 0.9242211 Internal Auditor 68 0.9242102 Organisation and Methods Analyst 67 0.9243201 Communication Coordinator 64 0.8214102 Industrial Engineering Technologist 57 0.7241102 Management Accountant 53 0.7215102 Electrical Engineering Technologist 52 0.7242202 Policy Analyst 51 0.6212103 Statistician 47 0.6262202 Information Services Manager 45 0.6216402 Transport Analyst 39 0.5213302 Environmental Scientist 38 0.579 http://www.careerjet.co.za/transport-analyst-jobs.html. Accessed 30 June 2013.

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OFO Code Professionals N

242208 Organisational Risk Manager 36 0.5211403 Materials Scientist 35 0.4235101 Education or Training Advisor 32 0.4211401 Geologist 32 0.4243401 ICT Account Manager 31 0.4243102 Market Research Analyst 27 0.4216502 Surveyor 27 0.4214201 Civil Engineer 26 0.3251203 Developer Programmer 25 0.3242302 Skills Development Facilitator/Practitioner 24 0.3263101 Economist 23 0.3243302 Sales Representative (Medical and Pharmaceutical Products) 22 0.3241103 Tax Practitioner 21 0.3212102 Mathematician 20 0.3251302 Web Developer 18 0.2243402 ICT Business Development Manager 17 0.2242304 Workplace/Industrial Relations Advisor 17 0.2242203 Company Secretary 17 0.2241104 External Auditor 14 0.2242210 Business Administrator 13 0.2242207 Compliance Officer 13 0.2243203 Corporate Communication Manager 12 0.2241203 Investment Advisor 12 0.1251202 Programmer Analyst 11 0.1252301 Computer Network and Systems Engineer 11 0.1252901 ICT Security Specialist 11 0.1215303 Telecommunications Network Engineer 10 0.1Source: WSP submissions, June 2012.

Table 4-5 shows the range of technicians and associate professionals working in the Petroleum Subsector. Almost a third (31,3%) of the workers are chemical plant controllers and another 15,0% are gas or petroleum controllers. Some of the other key technicians and associate professionals are production/operations supervisors (manufacturing), production/operations supervisors (mining), chemistry technicians, maintenance planners, metallurgical or materials technicians, mining technicians, and engineering technicians in the chemical, mechanical, electrical, electronic and industrial fields.

In the environmental field, the knowledge and skills of environmental and occupational health inspectors and environmental science technicians are used. Safety inspectors are also in demand. One of the major activities in the subsector is import and export. This requires the knowledge and skills of import-export administrators who are mainly responsible for arranging the clearance and collection of imported cargo from customs and bond stores, and the shipment of cargo for export.

Table 4-11 Technicians and Associate Professionals in the Petroleum Subsector

OFO Code Technicians and associate professionals N %

313301 Chemical Plant Controller 3 935 31.3

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OFO Code Technicians and associate professionals N %

313401 Gas or Petroleum Controller 1 887 15.0312201 Production/Operations Supervisor (Manufacturing) 803 6.4311101 Chemistry Technician 632 5.0312202 Maintenance Planner 482 3.8311501 Mechanical Engineering Technician 398 3.2312101 Production/Operations Supervisor (Mining) 386 3.1313501 Metal Manufacturing Process Control Technician 381 3.0334302 Personal Assistant 335 2.7312102 Miner 333 2.6311702 Metallurgical or Materials Technician 296 2.4331201 Credit or Loans Officer 255 2.0333905 Supply Chain Practitioner 239 1.9334102 Office Administrator 206 1.6332302 Purchasing Officer 202 1.6311301 Electrical Engineering Technician 171 1.4325705 Safety Inspector 145 1.2311701 Mining Technician 119 1.0332301 Retail Buyer 113 0.9311601 Chemical Engineering Technician 105 0.8311401 Electronic Engineering Technician 97 0.8311801 Draughtsperson 95 0.8334101 Office Supervisor 78 0.6335402 Import-export Administrator 77 0.6332201 Commercial Sales Representative 73 0.6331301 Bookkeeper 68 0.5333908 Marketing Coordinator 59 0.5341110 Associate Legal Professional 47 0.4332401 Commodities Trader 41 0.3331302 Accounting Technician 34 0.3312301 Building Associate 32 0.3333902 Special Services Contracting Agent 29 0.2333401 Property Manager 26 0.2332203 Sales Representative (Personal and Household Goods) 26 0.2351201 ICT Communications Assistant 25 0.2351302 Geographic Information Systems Technicians 22 0.2325707 Mines Safety Inspector 20 0.2333101 Clearing and Forwarding Agent 19 0.1311303 Energy Efficiency Technician 18 0.1331501 Valuer 16 0.1311201 Civil Engineering Technician 15 0.1311904 Manufacturing Technician 15 0.1325701 Environmental and Occupational Health Inspector 13 0.1314102 Environmental Science Technician 13 0.1311905 Industrial Engineering Technician 13 0.1

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OFO Code Technicians and associate professionals N %

334201 Legal Secretary 12 0.1Source: WSP submissions, June 2012.

Almost a third of the clerical support workers are working as general clerks, while 12,1% are production co-ordinators (production co-ordinators record and co-ordinate the flow of work and materials between departments or subsections, examine orders for goods and prepare production schedules for production units)80. Another 9.3% are working as dispatching and receiving clerks/officers.

Table 4-12 Clerical Support Workers in the Petroleum Subsector

OFO Code Clerical support workers N %411101 General Clerk 1 132 30.6432201 Production Coordinator 446 12.1432102 Dispatching and Receiving Clerk/Officer 345 9.3413201 Data Entry Operator 336 9.1441903 Program or Project Administrators 291 7.9432101 Stock Clerk/Officer 255 6.9431101 Accounts Clerk 215 5.8422201 Inbound Contact Centre Consultant 104 2.8412101 Secretary (General) 69 1.9422601 Receptionist (General) 68 1.8422501 Enquiry Clerk 51 1.4432104 Warehouse Administrator/Clerk 40 1.1431102 Cost Clerk 36 1.0432301 Transport Clerk 35 1.0441202 Postal Delivery Officer 33 0.9441101 Library Assistant 30 0.8422206 Call or Contact Centre Agent 27 0.7422301 Switchboard Operator 24 0.6432103 Order Clerk/Officer 23 0.6441203 Mail Clerk 22 0.6431301 Payroll Clerk 17 0.5441601 Human Resources Clerk 17 0.5441501 Filing or Registry Clerk 16 0.4422701 Survey Interviewer 12 0.3441902 Contract Administrator 12 0.3Source: WSP submissions, June 2012.

Table 4-7 shows the different kinds of service and sales workers employed in the Petroleum Subsector. Almost half (42,8%) of the workers in this occupational category are safety and security workers; 23,5% are security officers, 14,4% fire fighters, 2,8% special forces operators and 2,3% security consultants. This shows the important role that safety and security plays in the subsector. More than a quarter (26,4%) are working as service station attendants.

80 OFO version 12.

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Table 4-13 Service and Sales Workers in the Petroleum Subsector

OFO Code Service and sales workers N %524501 Service Station Attendant 184 26.4541401 Security Officer 164 23.5541101 Fire Fighter 99 14.2523102 Office Cashier 68 9.7524903 Sales Clerk/Officer 58 8.3542203 Special Forces Operator 20 2.8522301 Sales Assistant (General) 19 2.8541906 Security Consultant 16 2.3522201 Retail Supervisor 13 1.9515301 Caretaker 12 1.7524401 Call Centre Salesperson 10 1.5Source: WSP submissions, June 2012.

Very typical of a manufacturing environment is the employment of trade workers. Some of the key trade workers in the subsector are instrument mechanicians, fitter and turners, refrigeration mechanics, electricians, mechanical fitters, diesel mechanics, millwrights, boilermakers, riggers and welders (Table 4-8).

Table 4-14 Skilled Agricultural, Forestry, Fishery, Craft and Related Trades Workers in the Petroleum Subsector

OFO CodeSkilled agricultural, forestry, fishery, craft and related trades

workers N %672105 Instrument Mechanician 1 205 25.2652302 Fitter and Turner 1 180 24.6642702 Refrigeration Mechanic 600 12.5671101 Electrician 563 11.7653303 Mechanical Fitter 482 10.1653306 Diesel Mechanic 168 3.5671202 Millwright 135 2.8651302 Boilermaker 112 2.3651202 Welder 78 1.6651501 Rigger 53 1.1653301 Industrial Machinery Mechanic 45 0.9653302 Mechanical Equipment Repairer 36 0.7653101 Automotive Motor Mechanic 22 0.5662309 Adhesive Binding Machine Operator 16 0.3652301 Metal Machinist 15 0.3672104 Electronic Equipment Mechanician 14 0.3671205 Weapon Systems Mechanic 10 0.2Source: WSP submissions, June 2012.

More than a third (38,2%) of the plant and machine operators and assemblers are working as mining operators. This figure reflects the mining activity of Sasol (Sasol Mining forms part of the Sasol group of companies and forms part of CHIETA). A fifth (20,2%) work as tank drivers. Some of the other key occupations in this category are truck drivers, delivery drivers, chemical production machine operators, packaging manufacturing machine minders, forklift drivers, crane or hoist operators, and mineral processing machine operators.

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Table 4-15 Plant and Machine Operators and Assemblers in the Petroleum Subsector

OFO Code Plant and machine operators and assemblers N %711101 Mining Operator 1 822 38.2733204 Tanker Driver 965 20.2734101 Agricultural Mobile Plant (Equipment) Operator 354 7.4734206 Loader Operator 305 6.4733201 Truck Driver (General) 274 5.7732101 Delivery Driver 267 5.6713101 Chemical Production Machine Operator 240 5.0718304 Packaging Manufacturing Machine Minder 154 3.2734402 Forklift Driver 72 1.5734301 Crane or Hoist Operator 63 1.3711201 Mineral Processing Machine Operator 41 0.9731201 Railway Signal Operator 31 0.7731101 Train Driver 28 0.6718906 Bulk Materials Handling Plant Operator 25 0.5718303 Filling Line Operator 25 0.5718302 Packing Machine Operator 20 0.4718201 Boiler or Engine Operator 16 0.3711301 Driller 15 0.3718907 Weighbridge Operator 14 0.3Source: WSP submissions, June 2012.

Almost half (43,4%) of the workers in the occupational category elementary occupations are mining support workers, again reflecting the activities of Sasol Mining in the subsector. About a fifth (19,9%) work as metal engineering process workers. Some of the other key occupations in this category are chemical plant workers, electrical or telecommunications trades assistants and freight handlers (rail or road).

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Table 4-16 Elementary workers in the Petroleum Subsector

OFO Code Elementary occupations N %831101 Mining Support Worker 1 503 43.4832901 Metal Engineering Process Worker 688 19.9862918 Electrical or Telecommunications Trades Assistant 429 12.4832907 Chemical Plant Worker 261 7.5811201 Commercial Cleaner 113 3.3833402 Store Person 90 2.6833302 Truck Driver's Offsider 68 2.0862202 Handyperson 49 1.4833301 Freight Handler (Rail or Road) 48 1.4862919 Mechanic's Assistant 47 1.3811101 Domestic Cleaner 28 0.8832101 Packer (Non Perishable Products) 28 0.8862914 Sheltered Workshop Worker 27 0.8831301 Builder's Worker 27 0.8831310 Surveyor's Assistant 20 0.6Source: WSP submissions, June 2012.

4.3 CONCLUSION

This section clearly shows that employment in the Petroleum Subsector did not show the same declining trend when compared to total employment in the Chemical Sector – especially over the last decade. For the period 2000 to 2010 the average percentage growth in employment in the Petroleum Subsector was higher than in the Chemical Sector as a whole. The projected growth until 2020 shows the same trend.

The professional nature of the sector and the high intensity of highly skilled and skilled labour is clear from the WSP information. It can be expected to remain this way. The sector will continue to need highly skilled managers, professionals, technicians and associate professionals, and appropriately skilled artisans.

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5 THE SUPPLY OF SKILLS TO THE SUBSECTOR

The supply of skills is viewed from different perspectives in this section. The supply of skills refers in the first instance to new entrants to the labour market from basic education, FET colleges and HET institutions (new skills). However, it is also important to consider the skills needs of the current workforce and the training initiatives aimed at developing their skills levels.

The first part of this chapter deals with new entrants to the labour market. Key trends and supply-side constraints are highlighted. Initiatives undertaken by the subsector to increase the number of appropriately skilled new entrants are described.

The second part of the chapter describes the inputs of employers to train their current staff.

5.1 NEW ENTRANTS TO THE LABOUR MARKET

The formation of skills starts with general education and training (i.e. the school system). The output from this system remains a concern to the Chemical Sector, mainly because the the system seems to be unable to supply adequate numbers (and quality) of school leavers with mathematics and physical science passes that can pursue studies to become engineers, technologist, technicians and artisans. The general standard of education of school leavers who enter the labour market without any further training is also insufficient.

The supply of new skills from the FET colleges into the Chemical Sector has traditionally been very limited. However, Government’s recent focus on increasing both the quality and quantity of output from FET colleges holds the promise that these institutions can play a more significant role in skills supply to the Chemical Sector in future.

In respect of the supply of higher level skills to the sector, there has been substantial growth in the numbers of new graduates from universities and universities of technology in certain engineering fields. In terms of average annual output of national diplomas, growth is reported at 7,0% for diplomas in chemical engineering and technology and 6,0% for first degrees in the same field. Despite these positive growth trends, increases have not yet been sufficient to meet the needs of the national economy and the Chemical Sector in particular. In order to ensure future growth, it will be necessary to support higher education institutions through a variety of initiatives. These include: bridging programmes to promote access and success; increased physical and teaching resources to engineering departments; and programmes that promote workplace training opportunities for students from the universities of technology.

A further challenge facing the Petroleum Subsector is that FET colleges and HET institutions mainly provide standard courses and training in the chemical field, with only a very limited number of courses tailor-made for the petrochemical industry. However, there are initiatives to overcome this problem. For example, SAPIA has established relationships with some FET colleges in order to contextualise the needs of the subsector. Lecturers of these colleges are exposed to petroleum operations so that they can see what type of educational and training preparation is necessary for someone to work in the industry.

Another initiative is a partnership between SAPIA, the University of the Witwatersrand (Wits) and CHIETA to establish an integrated approach to the skills requirements of South Africa’s Petroleum industry81. The plan is to develop an integrated vocational and professional education and training programme that addresses both present and future skills needs in the subsector. The programme will allow for the structured articulation between qualification levels and between qualification bands to facilitate career development of staff with appropriate qualifications and workplace

81SAPIA, CHIETA & Wits, (2012). An integrated approach to the skills requirements of South Africa’s Petroleum industry, November 2012.

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experience. The programme is envisaged to involve a well co-ordinated network of institutions responsible for the delivery of the required skills at the appropriate NQF levels. The institutions are:

FET colleges for the training of technicians and artisans (National Certificates) with specialised skills required by the petroleum industry.

Universities of Technology (Diplomas and some BTech Degrees) for the training of specialist technologists.

Universities, for high-level skills training (graduates and researchers) both upstream and downstream, as well as CPD programmes aimed at keeping professionals in the petroleum industry up-to-date with new developments in their respective fields.

Private training providers presently delivering specialised skills training in accordance with the needs of the industry and possibly also other specialised skills training beyond the scope of the formal higher and further education sector.

The establishment and implementation of such a model will be seen as a practice of excellence for the Petroleum Subsector.

5.2 THE TRAINING AND DEVELOPMENT OF EMPLOYEES

Companies in the Chemical Sector are involved in a range of training and development initiatives that focus on developing the skills of their employees. Such initiatives supplement, but also build on the training that supplies new skills to the sector. This training and development of the current workforce forms a critical source of skills supply.

In 2011/2012 training opportunities were afforded to almost two thirds (64,4%) of employees in the Petroleum Subsector. More than a quarter (28,7%) of technicians and associated professionals and 17,9% of professionals had access to training opportunities. About 12% of trade workers, 11,0% of plant and machine operators and assemblers and 9,3% of workers in elementary occupations received training. Training opportunities were also afforded to 11,6% of the managers (Figure 5-1).

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Perc

enta

ge

Figure 5-11 Proportion of employees who received training according to occupational category: March 2012 Source: WSP submissions, June 2012.

In total about 58 441 training opportunities were afforded to employees (one employee could have accessed more than one training opportunity). The type of training opportunities is listed in the

45

table below. Just more than a third (36,1%) of these opportunities were short courses, 19,3% were induction training and 10.0% Foundational Learning Competency (FLC). Nine employees in the Petroleum Subsector obtained doctoral degrees in the 2011/2012 financial year.

Table 5-17 Training opportunities for employees: March 2012

Training intervention N %ABET 1 16 0.03ABET 2 12 0.02ABET 3 11 0.02ABET 4 59 0.10Certificate 557 0.95CHIETA Learning Programme 142 0.24Foundational Learning Competency 5 845 10.00Induction Training 11 309 19.35Job Specific Development Programme 5 624 9.62Mentorship 33 0.06Operator Licence/Renewal 991 1.70Refresher/Ex-Leave Training 2 723 4.66Short Course 21 106 36.12Skills Programme 5 186 8.87Work Placement 550 0.94Learnership 1 669 2.86National Certificate 35 0.06National Diploma 27 0.05National First Degree 12 0.02National Higher Certificate 10 0.02National Higher Diploma 62 0.11Further Diploma 331 0.57Honours Degree 3 0.01Masters Degree 17 0.03Doctoral Degree 9 0.02Other 2 102 3.60Total 58 441 100.0Source: WSP submissions, June 2012.

5.3 CONCLUSION

This chapter provides a short overview of the most pertinent supply-side issues relevant to the Petroleum Subsector. For any industry a constant and sufficient supply of suitably qualified people is of critical importance. For the Petroleum Subsector, that is heavily reliant on engineers, scientist and other technical staff, the throughput of skills from school level to specialised post-graduate qualifications is crucial. In this chapter some of factors that stifle this pipeline of skills formation, have been highlighted. However, the subsector, together with some of the higher education institutions, are making a concerted effort to overcome supply-side constraints and to prepare the industry for the envisaged growth and expansion noted in Chapter 3 of this subsector skills plan. These initiatives need to built upon and are discussed in more detail in the next chapter.

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Another facet of the supply of skills to the subsector is the training that is offered in the workplace by employers. As this chapter indicated, employers in the Petroleum Subsector invest huge amounts of time and money in the training and development of their own staff.

Despite the initiatives to build the skills base of the industry and to stimulate and support the supply-side of the labour market, certain skills deficiencies still remain. These are the subject of the next chapter.

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6 SKILLS SHORTAGES IN THE SUBSECTOR

There are various ways of identifying and monitoring skills shortages in a particular labour market. One of these is to ask employers about their experiences when recruiting people for positions in their organisations. Another way is by monitoring vacancy rates in that sector because skills shortages are bound to lead to unusually high vacancy rates. Skills shortages will also drive up the costs of the skills that are in short supply and therefore the monitoring of remuneration trends can also shed light on trends in relation to skills shortages.

CHIETA attempts to glean an understanding of skills shortages in the Chemical Sector by asking employers to identify these shortages when they submit their mandatory grant applications to the SETA. This information was requested for the first time in June 2011 – i.e. in the WSPs submitted for the 2011/2012 financial year. The information submitted by employers in the Petroleum Subsector is analysed in this chapter. In addition the feedback of stakeholders during the subsector workshops is also reported.

It has become customary in South Africa to use the term “scarce skills” to refer to quantitative shortages in the labour market – in other words there are not enough people with the necessary qualifications available to be appointed in positions that become available in the market. This term is also used in this chapter. Another aspect of skills shortages has to do with the qualitative components of the labour market – there may be people available to appoint, but they don’t have the right skills, abilities or other attributes that employers are looking for. Skills deficiencies can also develop among the workers that are already employed, because of the introduction of new technologies, new legislative requirements etc. These aspects are not discussed at this stage as they are generally taken care of by emloyers through inservice training.

6.1 SCARCE SKILLS IN THE SUBSECTOR

As mentioned above, the information on scarce skills was obtained by analysing the WSPs submitted in June 2012. This information reflects the situation as experienced by employers at the end of March 2012.

In the scarce-skills table that employers completed, they first had to name the occupation in which they experienced scarcity, and then had to select from two possible descriptions the one that best described the scarcity they experienced – i.e. “relative scarce skill” (referring to a situation where people are available in the labour market, but cannot easily be attracted to the sector); and “absolute scarce skill” (where people are generally in short supply in the labour market). For all the occupations in which scarcity was experienced, employers also had to indicate how many vacant positions were available at the time they completed the WSP. In addition, they were requested to identify what type of learning interventions they were planning to use to address the skills shortages.

Of the 85 organisations whose WSPs were approved by the CHIETA, 15 (17,6%) indicated that they experienced a scarcity of skills. The numbers of people that employers said they would need can be seen in Table 6-1. The total number of people needed to fill the vacancies that existed at that time in these organisations is 311; this equates to 0,7% of total employment in the subsector. The data shows that the skills of trade workers such as welders, boilermakers, mechanical fitters and electrical mechanics are generally scarce. The same applies to chemical plant controllers.

The skills of professionals such as chemical engineers, process technologists, mechanical engineers, geologists and electrical engineers are also sought after. Other vacancies for professionals that are hard to fill are the following: maintenance management engineers (planners); petroleum engineers; laboratory chemists; geophysicists; industrial engineers; supply chain technologists; civil engineers; environmental remediation specialists; pressurised vessels engineers; instrument engineering

48

technologists; refinery process engineers; mining engineers; rock engineers; metallurgical engineering technologists; electrical design engineers; electrical engineers (mines); instrumentation engineers; surveyors; accountants (general); financial accountants; human resources development co-ordinators; category managers; technical service advisors/salesmen; systems administrators (computers); and information system consultants.

Table 6-18 Vacancies in the Petroleum Subsector

OFO Code Occupation Number of vacancies651202 Welder 42651302 Boilermaker 42653303 Mechanical Fitter 42313301 Chemical Plant Controller 21642702 Electrical Mechanic 21214501 Chemical Engineer 13214102 Process Technologist 10214401 Mechanical Engineer 9211401 Geologist 8215101 Electrical Engineer 8313401 Gas or Petroleum Controller 6733201 Truck Driver (General) 5315203 Ship's Surveyor 4214401 Maintenance Management Engineer 3311801 Mechanical Engineering Draughtsperson 3214607 Petroleum Engineer 3441903 Project Programme Specialist 3331201 Finance Clerk/Officer 2211301 Laboratory Chemist 2671202 Millwright 2132201 Mine Manager 2132202 Planning Manager (Mining) 2132301 Construction Manager 2211402 Geophysicist 2214101 Industrial Engineer 2214408 Instrument Engineering Technologist (Defence Industry) 2214601 Mining Engineer 2214601 Rock Engineer 2215101 Electrical Design Engineer 2215201 Instrumentation Engineer 2311801 Electrical Engineering Draughtsperson 2311801 Mining Draughtsperson 2441903 Project Planner 2241107 Financial Accountant 1243301 Technical Service Advisor/Salesman 1252201 Systems Administrator (Computers) 1121905 Project Director 1132402 Dispatch Logistics Manager 1214102 Supply Chain Technologist 1

49

OFO Code Occupation Number of vacancies214201 Civil Engineer 1241101 Accountant (General) 1242303 Human Resources Development Coordinator 1243103 Category Manager 1262202 Information System Consultant 1332401 Commodities Trader 1341110 Associate Legal Professional 1432101 Supply Clerk/Assistant/Officer/Scheduler 1441903 Project Advisor/Leader 1653306 Diesel Mechanic 1672105 Instrument Mechanician 1672107 Electrical and Electronic Cathodic Protection Electrician 1132405 Fleet Manager 1214302 Environmental Remediation Specialist 1214401 Pressurised Vessels Engineer 1214502 Refinery Process Engineer 1214604 Metallurgical Engineering Technologist 1215101 Electrical Engineer (Mines) 1216502 Surveyor 1311102 Product Quality Laboratory Technician 1311501 Mechanical Instrument Technician 1311601 Energy Technician 1311801 Technical Draughtsperson 1431102 Costing Estimator 1Total 0% of employment in subsector 0.7 Source: WSP submissions, June 2012.

6.2 REASONS FOR SCARCITY

Some of the reasons that were given for the difficulty in finding certain skills relate to the lack of training in certain fields, the lack of articulation between qualifications, legal requirements for certain positions and the fact that there are not proper career paths leading to some of the occupations. Stakeholders indicated that it is very difficult to recruit welding inspectors, mainly because there is not dedicated training or a qualification in this regard. A recommendation was made that the career pathway for welders should be developed in such a way that they can become inspectors. This will require the development of a training plan and an extended career path for welders82.

The lack of articulation in the engineering field was mentioned by stakeholders. According to them the fact that a person cannot develop through work experience from engineering technician, to engineering technologist and then to professional engineer is one of the reasons why there is a shortage of engineering skills. Another reason that was given for the difficulty in recruiting engineers is that there are not enough registered professional engineers available to fill positions that require, according to legislation, professional engineers that are registered with ECSA.

82 Petroleum and Base Chemicals stakeholder workshop, 21 June 2013.

50

6.3 INTERVENTIONS TO ADDRESS SKILLS SHORTAGES

Employers were asked what type of learning interventions they planned on using to address the scarcity of skills and at what NQF levels the interventions would be. Table 6-2 below provides a summary of the type of learning interventions employers planned. Almost half (49,4%) specifically mentioned that they were going to use formal training that would lead to certificates, diplomas and degrees. More than a quarter (26,5%) indicated that they were going to use skills programmes as learning interventions and 10,0% said they were going to use learnerships. Other learning interventions employers plan to apply are job specific development programmes, mentorship programmes, CHIETA learning programmes, short courses and workplace experience.

Table 6-19 Learning interventions to address scarce skills, 2011/2012

Learning interventionNumber of interventions

planned %ABET 3 1 0.6Certificate 10 6.0Diploma 20 12.0Degree 52 31.3CHIETA Learning Programme 3 1.8Induction Training 1 0.6Job Specific Development Programme 11 6.6Learnership 17 10.2Mentorship 1 0.6Short Course 1 0.6Skills Programme 44 26.5Workplace Experience 5 3.0

Total 166100.

0Source: WSP submissions, June 2012.

6.4 CONCLUSION

In 2012 employers were for the first time required to provide information on scarce skills in their WSP submissions. A relatively small percentage of employers reported that they experienced skills shortages. This leaves the impression that the subsector is not severely affected by skills shortages. Nevertheless, some evidence of shortages of skills in the manager, professional, technician and associate professionals, and skilled and trade workers occupational categories was received. This situation may worsen if large-scale expansions of the industry were to take place.

As mentioned in the previous chapter, CHIETA is currently engaged in a range of partnerships, agreements and plans to contribute to both the development of new skills for the sector as well as the development of skills within the existing workforce. These initiatives may serve to keep the development of serious skills shortages at bay.

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7 SKILLS PLAN FOR THE SUBSECTOR

The skills plan for the subsector needs to be developed by the Petroleum and Base Chemicals Chamber.

Stakeholders that attended the workshop mentioned several initiatives that should be put in place and be applied to ensure that the necessary skills will always be available to the Petroleum Subsector. The most important initiatives are the following:

Artisans.

Stakeholders recommended that the recognition of prior learning (RPL) should be used as a tool to create career paths for employees to become artisans. In addition CHIETA should continue with its initiatives to foster partnerships with FET colleges regarding artisan training. At the end of 2012 CHIETA had meetings with a number of FET colleges in order to understand the constraints faced by the colleges in trying to build partnerships with industry. The issues addressed in the meetings related to inter alia lecturer upgrade and sharing of training resources - including trainers, workplace experience platforms, theoretical training spaces, curriculum alignment and learning materials alignment.

Engineering technicians, engineering technologists and engineers.Regarding the need for engineering skills, some stakeholders were of the opinion that the lack of articulation; between the engineering technician, engineering technologist and professional engineering qualifications and designations; is one of the reasons why there is a shortage of engineering skills in South Africa. Another reason that was given for the difficulty in recruiting engineers is legislated positions in industries such as petroleum. Some positions require that engineers should be registered with ECSA. However, as registration is not compulsory many engineers do not complete the formal candidacy period and do not register with ECSA. This makes it difficult for companies to fill positions that require registered engineers. Stakeholders proposed the following actions in order to address the lack of articulation: investigation of all the barriers in this regard; lobbying to change the legislation that hamper articulation; and the development and advocating of RPL tools in this regard. It was recommended that ECSA, DHET and the relevant SETAs should meet with regard to articulation83.

The partnership between the University of the Witwatersrand (Wits), SAPIA and CHIETA regarding an “Integrated Approach to the Skills Requirements of South Africa’s Petrochemical Industry”.

The partnership between SAPIA, Wits and CHIETA is an initiative to establish an integrated approach to the skills requirements of South Africa’s petroleum industry84. The plan is to develop an integrated vocational and professional education and training programme that addresses both present and future skills needs in the subsector. The programme will allow for the structured articulation between qualification levels and between qualification bands to facilitate career development of staff with appropriate qualifications and workplace experience. The programme is envisaged to involve a well co-ordinated network of institutions responsible for the delivery of the required skills at the appropriate NQF levels. This network will include:

83 Petroleum and Base Chemicals stakeholder workshop, 21 June 2013.84SAPIA, CHIETA & Wits, An integrated approach to the skills requirements of South Africa’s Petroleum industry, November 2012.

52

o FET colleges for the training of technicians and artisans (National Certificates) with specialised skills required by the petroleum industry.

o Universities of Technology (Diplomas and some BTech Degrees) for the training of specialist technologists.

o Universities, for high-level skills training (graduates and research) both upstream and downstream, as well as CPD programmes aimed at keeping professionals in the petroleum industry up to date with new developments in their respective fields.

o Private training providers presently delivering specialised skills training in accordance with the needs of the industry and possibly also other specialised skills training beyond the scope of the formal higher and further education sector.

The establishment and implementation of such a model will be seen as a practice of excellence for the Petroleum Subsector.

Partnerships.CHIETA must continue with its range of partnerships with FET colleges, HET institutions, Government and industry associations in order to continue contributing to both the development of new skills for the sector, as well as the development of skills within the existing workforce.

Focus on the environment.

The focus on environmental and sustainability issues will result in new and/or changed occupations. The subsector has to plan for this.

Continued Professional Development (CPD).CPD programmes must be kept current and should aim at updating the skills of professionals in the subsector in accordance with technological and other developments both upstream and downstream in industry.

53

REFERENCES

CHIETA, (2012). Five year sector Skills Plan for the chemical sector: Annual update 2013-2018.

Creamer Media, (2012). Liquid Fuels 2012: A review of South Africa's liquid fuels sector.

Department of Energy (DoE), (2010). Executive Summary of the Integrated Electricity Resource Plan for South Africa ‐ 2010 to 2030.

Department of Energy (DoE), (2010). Strategic Plan 2011/2012-2015/2016.

Department of Energy (DoE), (2013). Draft strategic Stocks Petroleum Policy and the Draft Strategic Stocks Implementation Plan.

Department of Higher Education and Training (DHET), (2012). Organised Framework of Occupations (OFO)- Version 12.

Department of Minerals and Energy (DME), (1998). White Paper on the Energy Policy of the Republic of South Africa.

Department of Minerals and Energy (DME). Energy Security Master Plan - Liquid Fuels.

dti, (2013). Industrial Policy Action Plan 2013/14-2015/16: Economic sector and employment cluster, 2013.

Government of South Africa, Petroleum Products Act. 120 of 1977.

Government of South Africa, Central Energy Fund Amendment Act No. 48 of 1994 .

Government of South Africa, National Energy Regulator Act No. 40 of 2004.

Government of South Africa, Petroleum Pipelines Act No.60 of 2003 .

Government of South Africa, Gas Act No. 48 of 2001 .

Government of South Africa, Petroleum Pipelines Levies Act No.28 of 2004 .

Government of South Africa, National Ports Act No. 12 of 2005 .

Government of South Africa, National Energy Act No. 34 of 2008 .

Government of South Africa, National Environmental Management Act No. 107 of 1998.

Moolman, S. (2013). Engineering News Online. Plans afoot to increase the role of gas in SA’s energy mix. 31 May 2013.

Kotzé, C. (2013). Engineering News Online. New Sapia chairperson highlights focus areas for 2013. 22 March 2013.

Kotzé, C. (2013). Engineering News Online. SA will need extra oil refining capacity in future – SAPIA. 7 September 2012.

Odendaal, S. (2013). Engineering News Online. Liquid fuels charter audit findings disappointing. 5 July 2012.

Matsho, J. (2010). The retail petrol industry in South Africa. Unpublished Master’s Dissertation. University of Zululand.

Moodley, S. (2013). Engineering News Online. Future projects will grow KZN concrete-flooring market. 19 July 2013.

National Planning Commission, (2013). National Development Plan.

SAPIA, CHIETA & Wits, (2012). An integrated approach to the skills requirements of South Africa’s Petroleum industry, November 2012.

54

South Africa Yearbook 2011/2012 – Energy.

Statistics South Africa. Quarterly Labour Force Survey, Second Quarter 2012.

United Nations Environment Programme, (2013). Global Chemicals Outlook - Towards Sound Management of Chemicals. UNEP.

55

ANNEXURE 1 OCCUPATIONS BY RACE AND GENDER IN THE PETROLEUM SUBSECTOR

Equity Managers ProfessionalsTechnicians

and associate professionals

Clerical support workers

Service and sales workers

Skilled and trade workers

Plant and machine

operators and assemblers

Elementary occupations Learners

African Female 337 895 1 286 652 121 208 219 495 259

% 6.4 11.5 10.2 17.6 17.4 4.3 4.6 14.3 20.1

African Male 1 125 1 731 5 422 823 382 2 262 3 988 2 364 591

% 21.2 22.3 43.1 22.2 54.7 47.2 83.6 68.3 45.8

Total African 1 462 2 625 6 708 1 475 503 2 470 4 207 2 859 850

% 27.6 33.8 53.4 39.9 72.1 51.6 88.2 82.6 65.9

Coloured Female 146 297 323 282 10 18 1 17 24

% 2.7 3.8 2.6 7.6 1.4 0.4 0.0 0.5 1.9

Coloured Male 266 437 654 204 26 221 178 88 98

% 5.0 5.6 5.2 5.5 3.7 4.6 3.7 2.5 7.6

Total Coloured 411 733 977 486 36 239 179 105 123

% 7.8 9.4 7.8 13.1 5.2 5.0 3.8 3.0 9.5

Indian Female 146 354 222 161 19 21 6 14 27

% 2.8 4.6 1.8 4.3 2.8 0.4 0.1 0.4 2.1

Indian Male 414 698 679 179 20 204 112 42 126

% 7.8 9.0 5.4 4.8 2.9 4.3 2.3 1.2 9.8

Total Indian 559 1 052 901 340 40 225 118 56 153

% 10.6 13.5 7.2 9.2 5.7 4.7 2.5 1.6 11.9

56

Equity Managers Professionals

Technicians and

associate professional

s

Clerical support workers

Service and sales

workers

Skilled and trade

workers

Plant and machine

operators and

assemblers

Elementary occupations Learners Total

White Female 636 1 161 1 007 912 36 104 28 56 21 636

% 12.0 14.9 8.0 24.7 5.2 2.2 0.6 1.6 1.7 12.0

White Male 2 229 2 205 2 980 487 83 1 751 235 387 143 2 229

% 42.1 28.4 23.7 13.2 11.9 36.6 4.9 11.2 11.1 42.1

Total White 2 865 3 366 3 987 1 399 119 1 855 263 444 164 2 865

% 54.1 43.3 31.7 37.8 17.1 38.7 5.5 12.8 12.7 54.1

Total Female 1 264 2 707 2 838 2 007 187 351 255 582 332 1 264

% 23.9 34.8 22.6 54.2 26.8 7.3 5.3 16.8 25.7 23.9

Total Male 4 034 5 071 9 734 1 694 511 4 438 4 513 2 881 958 4 034

% 76.1 65.2 77.4 45.8 73.2 92.7 94.7 83.2 74.3 76.1

TOTAL 5 298 7 777 12 573 3 701 698 4 789 4 767 3 463 1 290 5 298

Occupation Not Specified 14

Subsector total employment 44 371

Source: WSP submissions, June 2012.

57

ANNEXURE 2 OFO OCCUPATIONS AND SPECIALISATION NAMES USED IN THE PETROLEUM SUBSECTOR

OFO Code Occupation Specialisation name

111202 General Manager Public Service General Manager Public Service

111203 Local Authority Manager City Administrator

111204 Senior Government Official Chief Operating Officer (Government Department)

Consular OfficerRegistrar (Including Legal/Court etc., but Excluding Tertiary Institutions)

111402 Trade Union Representative Shop Steward

112101 Director (Enterprise/Organisation) Chief Executive Officer (CEO)

Company Director

Executive Director

Managing Director

Managing Director (Enterprise/Organisation)

Non-executive Director

Senior/Lead Independent Non-executive Director

121101 Finance Manager Account Systems Manager

Chief Accountant

Chief Financial Officer (CFO)

Finance Director

Financial Administration Manager

Financial Administrator

Financial Controller

Internal Revenue Controller

121201 Personnel/Human Resource Manager Employee Relations Manager

Transition Manager

121202 Business Training Manager Education Training and Skills Development Manager

Human Resources Development Manager

Learning and Development Manager

Technical Training Manager

Training and Development Manager

Training Manager

121203 Compensation and Benefits Manager Remuneration and Benefits Manager

121205 Employee Wellness Manager Employee Wellness Manager

121206 Health and Safety Manager Safety, Health and Environmental (SHE) Manager

121301 Policy and Planning Manager Corporate Planning Manager

Planning and Development Manager

Strategic Planning Manager

121901 Corporate General Manager Business Operations Manager

Administrative Services Manager

Business Services Manager

Corporate Services Manager

121905 Programme or Project Manager Programme or Project Manager

121905 Programme or Project Manager Project Director

121908 Quality Systems Manager Quality Assurance/Systems Auditor

121908 Quality Systems Manager Quality Auditor

58

OFO Code Occupation Specialisation name

Quality Control Manager

Quality Systems Coordinator

Quality Systems Manager

122101 Sales and Marketing Manager Business Development Manager

Business Support Manager

Key Account Manager

122102 Sales Manager Sales Director

Sales Executive

122103 Director of Marketing Market Research Manager

Marketing Director

Marketing Manager

122105 Customer Service Manager Client Service Manager

Client Services Advisor

Client Services Manager/Representative

Customer Care Manager/Representative

Customer Services Engineer

122201 Advertising and Public Relations Manager Chief Communications Manager/Officer

Corporate Relations Manager

Media and Communications Manager

Public Relations Manager

Relationship Manager

122301 Research and Development Manager Product Development Manager

122301 Research Director

122301 Research Manager

131101 Agricultural Farm Manager Mixed Crop and Livestock Farm Manager

132101 Manufacturer Factory Manager

132102Production/Operations Manager (Manufacturing) Operations Manager (Production)

Plant Manager (Manufacturing)

Plant Superintendent

Processing Manager

Processing Unit Manager

Works/Workshop Manager (Manufacturing)

132104 Engineering Manager Engineering Maintenance Manager

Engineering Manager (Mining)

132105Power Generation Production/Operations Manager Biofuels Production Manager

Geothermal Production Manager

132201 Production/Operations Manager (Mining) Mine Manager

132202 Mineral Resources Manager Chief Surveyor (Mining)

Exploration Manager

Geology Manager (Mining)

Mine Design and Planning Manager

Mine Planning Manager

Mining Exploration Manager

59

OFO Code Occupation Specialisation name

Planning Manager (Mining)

Technical Services Manager (Mining)

132302 Project Builder Building Site Manager/Agent

132401 Supply and Distribution Manager Depot Manager

Procurement Manager

Purchase Manager

Supply Chain Executive

Supply Chain Manager

Supply Lead Manager

132402 Logistics Manager Dispatch Logistics Manager

132403 Road Transport Manager Cargo Manager

Transport Company Manager

132404 Warehouse Manager Storage and Warehousing Manager

133101 Chief Information Officer ICT/IT Manager

133102 ICT Project Manager ICT/IT/Computer Support Manager

133103 Data Management Manager Data Operations Manager

Data Processing Manager

133104 Application Development Manager Technical Policy Manager

Technical Solutions Manager

134201 Medical Superintendent Health Service Coordinator

Health Service Manager

Public Health Administrator

134903 Small Business Manager Entrepreneurial Business Manager

134906 Practice Manager Accounting Practice Manager

134912 Commissioned Fire and Rescue Officer Chief Fire and Rescue Officer

134915 Operations Manager (Non Manufacturing) Operations Foreman (Non Manufacturing)

141201 Café (Licensed) or Restaurant Manager Food Services Manager

141203 Catering Production Manager Food and Beverage Coordinator

142101 Importer or Exporter Export Manager

142103 Retail Manager (General) Retail Store Manager

143105 Sports Administrator Sports Team Manager

143901 Facilities Manager Campus Administrator/Supervisor

Facilities Supervisor

143905 Call or Contact Centre Manager Call/Contact Centre Quality Manager

Call/Contact Centre Supervisor

211301 Chemist Analytical Chemist

Industrial Chemist

Laboratory Chemist

211401 Geologist Exploration Geologist

Geoscientist

Mine Geologist

Petrologist

211403 Materials Scientist Polymer Scientist

212102 Mathematician Operations Research Analyst

60

OFO Code Occupation Specialisation name

212103 Statistician Reporting Analyst

Statistical Analyst

Statistical GIS Specialist

213105 Biotechnologist Bioprocess Engineer

213201 Agriculture Consultant Farm Consultant/Advisor

213302 Environmental Scientist Environmental Advisor

Environmental Consultant

Environmental Officer

213305 Air Pollution Analyst Air Quality Technician

213306 Water Quality Analyst Waste Water Treatment Officer/Technician

Water Quality Technician

214101 Industrial Engineer Industrial Efficiency Engineer

Industrial Machinery Engineer

Manufacturing Logistics Engineer

Manufacturing Technology Engineer

Plant Engineer

Process Design Engineer

Process Engineer

Production Engineer

Safety Engineer

Supply Chain Management Engineer

214102 Industrial Engineering Technologist Process Design Technologist

Process Technologist

Quality Management Technologist

Value Engineering Technologist

214202 Civil Engineering Technologist Water and Wastewater Technologist

214401 Mechanical Engineer Maintenance Management Engineer

Mechanical Engineer (Mines)

Mechatronics Engineer

Pressurised Vessels Engineer

214402 Mechanical Engineering Technologist Maintenance Technologist

214501 Chemical Engineer Biochemical Engineer

Crude Oil, Coal and Petrochemicals Engineer

214502 Chemical Engineering Technologist Biochemical Technologist

Crude Oil Technologist

Fuel Technologist

Petrochemicals Technologist

Refinery Process Engineer

214602 Mining Engineering Technologist Mine Ventilation Technologist

214607 Petroleum Engineer Oil Refinery Engineer

Petroleum Engineering Technologist

215101 Electrical Engineer Control Engineer

215102 Electrical Engineering Technologist Control Engineering Technologist

61

OFO Code Occupation Specialisation name

215103 Energy Engineer Energy Services Engineer

215201 Electronics Engineer Electronics Designer

Instrumentation Engineer

215202 Electronics Engineering Technologist Information Technologist

Instrumentation Technologist

215301 Telecommunications Engineer Engineer Communications

215303 Telecommunications Network Engineer Communications Specialist (ICT)

216401 Urban and Regional Planner Community/Country/District Planner

Land Planner

Natural Resource Management Consultant/Officer/Planner

Town Planner

216402 Transport Analyst Logistics Analyst

216502 Surveyor Mine Surveyor

221211 Surgeon Occupational Medicine Specialist

222104 Registered Nurse (Community Health) Industrial/Factory Nurse

Occupational Health Nurse

222108 Registered Nurse (Medical and Surgical) General Nurse

226203 Retail Pharmacist Pharmacist Assistant

226302Safety, Health, Environment and Quality (SHE&Q) Practitioner Health and Safety Officer/Coordinator/Professional

Occupational Health and Safety Advisor

Occupational Hygienist

Occupational Safety Advisor

Occupational Safety Practitioner/Officer

Risk and Safety Manager

Road Safety Coordinator

Safety Coordinator

231101 University Lecturer Assessment Advisor and/or Internal Moderator

231101 University Lecturer Lecturer

235101 Education or Training Advisor Curriculum Advisory Officer/Facilitator

Education/Training ConsultantEducation and Training Quality Assurance (ETQA) Officer/Manager

235201 Special Needs Teacher Learning Support Teacher

235205 Adult Education Teacher Abet Trainer

241101 Accountant (General) Debtors Manager

241102 Management Accountant Budget Accountant

241102 Management Accountant Cost Accountant

241103 Tax Practitioner Tax Analyst

241103 Tax Practitioner Tax Auditor

241103 Tax Practitioner Tax Consultant

241104 External Auditor Audit and Assurance Manager

Auditor

Forensic Auditor/Investigator

Project Auditor

62

OFO Code Occupation Specialisation name

241107 Financial Accountant Business Group Accountant

241107 Financial Accountant Corporate Accountant

241202 Investment Manager Portfolio Manager

241203 Investment Advisor Portfolio Advisor

241301 Financial Investment Advisor Account Management Advisor

Financial Business Analyst

Financial Planner

Financial Planning Advisor/Manager

242101 Management Consultant Business Analyst

Business Consultant

Business Support Project Manager

Commercial Analyst

Corporate Planner

Management Consulting Specialist

Management Reporting Analyst

Operations Analyst

Resource Development Analyst

Strategic Developer/Facilitator

Technology Development Coordinator

242102 Organisation and Methods Analyst Business/Community/Disability Liaison Officer

Change Management Facilitator

Cost Modelling/Industry Analyst

Equipment and Standards Advisor

Organisational Performance Improvement Manager

Organisational Performance Manager/Practitioner

242202 Policy Analyst Policy Analyst

Research Consultant

Risk/Planning/Review/Analyst

Special Projects Analyst

Strategy Analyst

242204 Corporate Treasurer Treasurer

242208 Organisational Risk Manager Organisational Development Manager/Practitioner

Organisational Enterprise Wide Risk Manager

Organisational Risk Officer

Risk Compliance Manager

242302 Skills Development Facilitator/Practitioner Enterprise Resource Planner

Human Resources Planner

Workforce Planning Analyst

242303 Human Resource Advisor Business Unit Advisor

HR Administrator

HR Coordinator

HR Officer

Human Resource Consultant

Human Resources Development Coordinator

63

OFO Code Occupation Specialisation name

Personnel Consultant

Personnel Officer

Remuneration and Benefits Specialist

242304 Workplace/Industrial Relations Advisor Employee Relations Advisor

Industrial Relations Advisor

242401 Training and Development Professional Training and Development Practitioner

Training Officer

242402 Occupational Instructor/Trainer Business Leadership/Executive Coach

Business Skills Trainer

Mechanical Instructor

On-the-job Trainer

Operator Trainer

Systems Trainer

242403 Assessment Practitioner Assessor

243101 Advertising Specialist Advertising Coordinator/Specialist

243102 Market Research Analyst Marketing AnalystMarketing Research Accounts Manager/Key Account Manager

243103 Marketing Practitioner Brand Manager

Business Forecaster

Business Strategy Manager

Category Manager

Marketing Consultant

Marketing Officer

Marketing Specialist

Product/Programme Developer (Travel Services)

Product Manager

Retail Advisor

Sales Account Manager

Sales Coordinator

Sales Promotion Officer

243201 Communication Coordinator Communication Management Coordinator

Corporate Affairs Officer/Coordinator

Customer Relations Officer

Internal/Employee Communication Coordinator

Public Relations (PR) Coordinator/Practitioner

243203 Corporate Communication Manager Manager External/Internal Communication)

Manager Public Affairs/Relations

243204 Event Producer Event Manager Specialist

243301Sales Representative/Salesman (Industrial Products) Customer Services Engineer/Processor

Engineering Salesman

Service Delivery Analyst/Coordinator

Technical Representative/Salesman

Technical Sales Consultant/Coordinator/Manager

64

OFO Code Occupation Specialisation name

Technical Service Advisor/Salesman

243302Sales Representative (Medical and Pharmaceutical Products) Pharmaceutical Territory Manager

243403 ICT Sales Representative Computer Consultant

Computer Systems Consultant

251101 ICT Systems Analyst Computer Analyst

ICT Business Systems Analyst

ICT Systems Advisor

ICT Systems Specialist

ICT Systems Strategist

Systems Programmer

251201 Software Developer Software Engineer

251203 Developer Programmer Applications Developer

ICT Developer

251302 Web Developer Web Programmer

252101 Database Designer and Administrator Data Administrator

Database Administrator

Database Analyst

252201 Systems Administrator IT Information Systems Administrator

Network Administrator

Systems Administrator (Computers)

Systems Manager

252301 Computer Network and Systems Engineer Network Engineer

Network Programmer/Analyst

Network Support Engineer

252302 Network Analyst Network Planner

252302 Network Analyst Network Strategist

252901 ICT Security Specialist Database Security Expert

Internet Security Architect/Engineer/Consultant

Security Administrator

261101 Attorney Intellectual Property Lawyer/Practitioner

261901 Adjudicator Negotiator

261903 Master of The Court Master

262202 Information Services Manager Information Management Specialist

263101 Economist Development Finance Project Analyst

Economic Advisor

311101 Chemistry Technician Chemical Instrumentation Officer

Chemical Laboratory Technician/Analyst

Chemical Manufacturing TechnicianChemical Technician (Food, Fuel, Gas, Paint, Liquefied Petroleum Gas, Leather)

Chemistry Technical Officer

311102 Physical Science Technician Product Quality Laboratory Technician

311201 Civil Engineering Technician Civil Engineering Assistant

Work Site Engineering Technician

65

OFO Code Occupation Specialisation name

311301 Electrical Engineering Technician Electrical Engineering Laboratory Technician

Electrical Engineering Technical Officer

Electrical Instrument Technician

311302 Electric Substation Operations Manager Distribution Control Operator

Power Distribution Technician

311303 Energy Efficiency Technician Energy Officer

311401 Electronic Engineering Technician Digital Controls Technical Officer

Telemetry Technician

311501 Mechanical Engineering Technician Mechanical Instrument Technician

Mechanical Laboratory Technician

311601 Chemical Engineering Technician Coal Technician

Crude Oil Technician

311701 Mining Technician Mine Analyst

Mine Planner

311702 Metallurgical or Materials Technician Mineral Analyst/Spectroscopist

Petroleum Products Laboratory Technician

Petroleum Refinery Laboratory Technician

311801 Draughtsperson Chemical Engineering Draughtsperson

Civil Engineering Draughtsperson

Design and Manufacturing Draughtsperson

Electrical Engineering Draughtsperson

Electronic Engineering Draughtsperson

Mechanical Engineering Draughtsperson

Mining Draughtsperson

Petroleum Draughtsperson

Technical Draughting Officer

311904 Manufacturing Technician Quantity Surveying Technician

312101 Production/Operations Supervisor (Mining) Mine Operations Foreman

Mine Overseer (Production)

Shift Foreman/Boss (Mining)

312101 Production/Operations Supervisor (Mining) Shift Supervisor (Mining)

312102 Miner Coal Miner

Team Leader (Mining)

312201Production/Operations Supervisor (Manufacturing) Assembly Supervisor

Manufacturing Foreman

Production Plant Supervisor

Shift Manager (Production)

312202 Maintenance Planner Engineering Planner

Maintenance Scheduler

Marine Maintenance Planner

Shutdown Coordinator/Planner

312301 Building Associate Building Construction Supervisor

Clerk of Works

313201 Water Plant Operator Liquid Waste Process Operator

66

OFO Code Occupation Specialisation name

313301 Chemical Plant Controller Chemical Plant Controller

313301 Chemical Plant Controller Chemical Process Technician

Chemical-still and Reactor Operator

Pharmaceutical Production Controller

313401 Gas or Petroleum Controller Petroleum Blending Plant Controller

Petroleum Process Operator

Petroleum Terminal Plant Controller

Refinery Pipeline Controller

Refinery Process Technician

313501Metal Manufacturing Process Control Technician Metal Processing Control Operator

313501Metal Manufacturing Process Control Technician Rolling Mill Control Operator

313909 Miller Mill Silo Operations Controller/Manager

314102 Environmental Science Technician Environmental Technical Officer

314201 Agricultural Technician Field Production Officer

315304 Flying Instructor Aviation Instructor

321201 Medical Laboratory Technician Medical Bloodbank Technician

321301 Pharmaceutical Technician Pharmacist Technician

325705 Safety Inspector Accident Prevention Consultant/Inspector

Factory Inspector

Non-destructive Testing (NDT) Inspector

Safety Health Environment Quality Inspector

Works Inspector

325706 Ammunition Technician Explosive Ordnance

331201 Credit or Loans Officer Credit Clerk

Credit Controller

Finance Clerk/Officer

Finance Systems Assistant

Financial Accounting Plan Officer

Treasury Officer

331401 Statistical and Mathematical Assistant Decision Support Analyst

331501 Valuer Asset Protection Manager

Commercial Valuer

Property Valuer

332301 Retail Buyer General/Company Buyer

332302 Purchasing Officer Procurement Administrator/Coordinator/Officer

Procurement Clerk

Procurement Officer (Consumer Sensitive Consumables)

Purchasing Agent/Assistant/Buyer/Clerk/Controller

Purchasing and Logistics Officer

Purchasing Merchandiser

Service and Purchase Advisor

333101 Clearing and Forwarding Agent Commercial Support & Claims Coordinator (Cargo)

Shipping Agent

67

OFO Code Occupation Specialisation name

Shipping Agent Coordinator

333301 Recruitment Consultant/Officer Labour Recruitment Recruiter

Recruitment Officer

333401 Property Manager Body Corporate Manager

Property Administrator

Property Business Support Manager

Property Clearance/Contracts/Development Manager

Property Leasing Manager

333402 Real Estate Agent Property Analyst/Consultant/Dealer/Developer/Planner

Real Estate Consultant

333403 Real Estate Representative Real Estate Salesperson

333903 Sales Representative (Business Services) Business Services Officer

Sales Representative (Advertising)

333904 Business Broker Commercial Property Specialist

333905 Supply Chain Practitioner Supply Chain Administrator

333908 Marketing Coordinator Marketing Support Coordinator

334101 Office Supervisor Clerical Supervisor

334101 Office Supervisor Data Entry Supervisor

Filing Clerks Supervisor

Personnel Clerks Supervisor

334102 Office Administrator Office Coordinator

334201 Legal Secretary Legal Practice Manager

334302 Personal Assistant Administrative Secretary

Executive Assistant

Private Secretary

334401 Medical Secretary Medical Transcriptionist

335101 Customs Officer Customs Advisory Officer/Administrator

Customs Liaison Officer/Prevention Officer

335402 Import-export Administrator Customs Agent/Clerk

335501 Detective Investigator

335915 Transport Operations Inspector Transport Service Inspector

341103 Paralegal Legal Assistant

341107 Law Clerk Inland Revenue Technical Advisor

341110 Associate Legal Professional Legal Advisor

Legal Officer

343401 Chef Executive Chef

Head Chef

Second Chef

351201 ICT Communications Assistant Computer Database Assistant

Computer Help Desk Operator

ICT Systems Analysis Assistant

351301 Computer Network Technician Network Support Technician

351302 Geographic Information Systems TechniciansGIS Assistant/Consultant/Officer/Operator/Specialist/Technician

68

OFO Code Occupation Specialisation name

Technical Support Specialist

352103 Sound Technician Sound Editor/Mixer/Recordist/Operator/Specialist

352105 Radio Station Operator Radio Control Room Technician

411101 General Clerk Administration Clerk/Officer

Administrative Assistant

Buying Clerk

Clerical Assistant/Officer

Lab Administrator

Office/Field Assistant

Planning Support Officer

Recording Clerk

Tender Evaluation Coordinator

413201 Data Entry Operator Data Capturer

Data Compiler/Enterer/Officer/Operator

Data Control/Input Clerk

Data Processing Operator

Data Specifier/Programmer/Cati Specialist

422201 Inbound Contact Centre Consultant Inbound Call Centre Customer Service Representative

Inbound Contact Centre Team Leader

422202 Outbound Contact Centre Consultant Call Centre Customer Service Representative (Outbound)

Call or Contact Centre Sales Agent/Consultant

Outbound Contact Centre Team Leader

422203 Contact Centre Real Time Advisor Bridge Controller

422203 Contact Centre Real Time Advisor Resource Controller

422501 Enquiry Clerk Client Liaison Officer

Client Support Officer

Communications Assistant

Corporate/Front Office Receptionist

Customer Services Clerk/Officer/Reception Officer

Helpline Advisor

Information Clerk/Officer/Advisor/Assistant

Public Counter Assistant/Clerk/Receptionist

422601 Receptionist (General) Front Desk Support Officer

422701 Survey Interviewer Field Assistant/Coordinator

Field Worker

431101 Accounts Clerk Account Coordinator/Controller

Accounting Clerk

Accounts Payable or Receivable Clerk

Assets Clerk/Coordinator

Audit Clerk

Creditors Clerk

Debtors Clerk

431102 Cost Clerk Costing Estimator

Pricing Clerk/Analyst/Estimator

69

OFO Code Occupation Specialisation name

431201 Insurance Administrator Insurance Brokering Clerk/Assistant

431202 Securities Services Administrative Officer Accounts Opening and Maintenance Officer

Securities Lending and Borrowing Officer

431203 Statistical Clerk Data Match Officer

431301 Payroll Clerk Payroll Assistant/Consultant/Coordinator

Payroll Officer/Administrator/Advisor/Analyst

Salaries Clerk/Officer/Administrator

Wage Clerk

432101 Stock Clerk/Officer Inventory Clerk/Controller/Administrator

Purchasing and Inventory Officer

Stock Control Clerk

Storekeeping Officer

Stores Clerk/Officer

Stores Controller

Stores Coordinator

Stores Maintenance Clerk

Supply Clerk/Assistant/Officer/Scheduler

432102 Dispatching and Receiving Clerk/Officer Dispatch Clerk/Officer/Operator/Assistant/Worker

Distribution Officer

Receiving Clerk

Shipping and Receiving Clerk

Workshop Clerk

432103 Order Clerk/Officer Customer Orders Clerk

432104 Warehouse Administrator/Clerk Warehouse Administrator/Clerk

432201 Production Coordinator Delivery Clerk

Distribution ControllerLogistics Clerk/Assistant/Controller/Coordinator/Planner/ Officer

Manufacturing Distributor

Material and Production Planning Clerk

Planning and Liaison Officer

Production Foreman

Production Leader

Production Planner/Officer

Production Planning Officer

Production Recorder/Scheduler

Shift Controller

432301 Transport Clerk Clerical Controller (Transport Service)

Fleet Contracts Manager/Controller/Coordinator

Fleet Maintainer/Supply Officer

Road Traffic Controller

Transport Coordinator/Dispatcher

441101 Library Assistant Cataloguing Clerk/Officer

Documentation Officer

441202 Postal Delivery Officer Messenger

70

OFO Code Occupation Specialisation name

441203 Mail Clerk Mail Assistant

441501 Filing or Registry Clerk Document Control Officer

Documentation Clerk/Officer

Records Clerk/Coordinator

441601 Human Resources Clerk Human Resources Planning Clerk

Human Resources Records Clerk

Human Resources Systems Administrator

441602 Skills Development Administrator Training Administrator

441902 Contract Administrator Contract Coordinator

Contracts Officer

441903 Program or Project Administrators Administration Officer

Administrator

Programme/Project Coordinator

Project Advisor/Leader

Project Controller

Project Coordinator

Project Planner

Project Programme Specialist

441905Account Clerk (Public Relations/Communication) Communication Clerk/Assistant

516501 Driving Instructor Driver Education Teacher

522201 Retail Supervisor Checkout Supervisor

Sales Department Supervisor

Sales Promotions Officer

522301 Sales Assistant (General) Retail Assistant

Sales Person/Consultant

Shop Assistant

522303 Automotive Parts Salesperson Parts Assistant Manager

523102 Office Cashier Cashier

Service Station Cashier

523103 Ticket Seller Booking Clerk

524401 Call Centre Salesperson Telephone Sales Person

524501 Service Station Attendant Forecourt Attendant

Petrol Station Attendant

524901 Materials Recycler Waste Recycler

524903 Sales Clerk/Officer Engineering Sales Clerk

Internal Salesperson

541101 Fire Fighter Fire Prevention Officer

Fire Safety Officer

541202 Police Officer (Non-commissioned) Crime Scene Coordinator/Officer

Crime Services Manager

Police Station Control Manager

541401 Security Officer Guard

Security Guard

Security Safety and Emergency Services Manager

71

OFO Code Occupation Specialisation name

Security Services Coordinator

Watchman

541501 Intelligence Operator Intelligence Administration Clerks

Vetting Officials

541906 Security Consultant Security Advisor

542202 Special Forces Officer Special Forces Operations Officer (Ops Off)

Team Leader (Tm Ldr)

642702 Refrigeration Mechanic Electrical Mechanic

643101 Painter Painter

651101 Moulder Coremaker

651202 Welder Automotive Acetylene and Electrical Welder

Plater-welder

Welding Inspector

Welding Tradesperson

651302 Boilermaker Boilermaker-welder

Plater-boilermaker

651401 Metal Fabricator Metal Fabricator-welder

Machine Tool Operator

Turner Machinist

652302 Fitter and Turner Industrial Mechanician

653101 Automotive Motor Mechanic Auto Engineer/Mechanic

Fuel Injection Pump Mechanic

Motor Mechanic

Vehicle Mechanic

653301 Industrial Machinery Mechanic Plant Maintenance Mechanic

653303 Mechanical Fitter General Fitter

653303 Mechanical Fitter Machine Fitter

Maintenance Fitter

Mechanical Fitter (Machinery) Ships

662307 Folding Machine Operator (Paper Products) Folder Operator

662309 Adhesive Binding Machine Operator Adhesive Binding Machine Operator

671101 Electrician Electrical Contractor

Electrical Fitter

Electrician (Engineering)

Electrician (General)

671202 Millwright Millwright (Electromechanician)

Printers' Mechanic

671205 Weapon Systems Mechanic Mechanical Fitter (Weapons) Ships

671208 Transportation Electrician Auto Electrician

671301 Electrical Line Mechanic Lines Inspector

Linesman

672104 Electronic Equipment Mechanician Security System Installer/Technician

672105 Instrument Mechanician Electronic Instrument Trades Worker

Electronic Repair Technician

72

OFO Code Occupation Specialisation name

Electronic Service Technician

Industrial Instrument Maker/Repairer/Serviceman

Instrument Fitter

Instrument MechanicInstrument Mechanician (Industrial Instrumentation and Process Control)

Instrument Mechanician (Industrial)

Instrument Mechanician (Process Control)

672107 Special Class Electrician Electrical and Electronic Cathodic Protection Electrician

684904 Panelbeater Panelbeater and Spraypainter

711101 Mining Operator Continuous Miner Operator

Mining Plant Operator

Mining Team Leader

Roof Bolter (Mining)

Shuttle Car Operator (Mining)

711201 Mineral Processing Machine Operator Milling Machine Operator (Minerals)

711203 Diamond Cutter Sorter

711301 Driller Drilling Plant Operator

Exploration Driller

713101 Chemical Production Machine Operator Chemical Extractor/Reactor/Still Operator

Cosmetics Machine OperatorPetroleum and Natural Gas Refining (Ethyl) Operator/Blender

717102 Paper and Pulp Mill Operator Paper Rewinder Operator

718201 Boiler or Engine Operator Motorman/Motorwoman (Fluids Drilling)

Ship's Boiler Operator

718303 Filling Line Operator Bottle Filler

Container Filler

718304 Packaging Manufacturing Machine Minder Packaging Machine Operator

718906 Bulk Materials Handling Plant Operator Tank Farm Operator (Petroleum)

718907 Weighbridge Operator Licensed Weigher

731101 Train Driver Locomotive Driver

731201 Railway Signal Operator Railway Shunter

Railway Traffic Assistan/Operator

Railway Yard Assistant

732101 Delivery Driver Driver-messenger

Light Utility Vehicle (LUV) Driver

Van Driver

733201 Truck Driver (General) Lorry Driver

733204 Tanker Driver Petrol Tanker Driver

733204 Water Tanker Driver

733208 Mobile Mining Equipment Operator Utility Vehicle Operator

734101Agricultural Mobile Plant (Equipment) Operator Tractor Driver

734201 Earthmoving Plant Operator (General) Construction Plant Operator (General)

734206 Loader Operator Loader Driver

73

OFO Code Occupation Specialisation name

Load-haul-dump (LHD) Operator

734301 Crane or Hoist Operator Crane Driver

Tower Crane Operator

734402 Forklift Driver Forklift Operator

735101 Deck Hand Able Seaman

Boatswain/Bosun

Ship Crew Member

811101 Domestic Cleaner Char (Domestic)

Home/House Cleaner

811201 Commercial Cleaner Building Exterior/Interior Cleaner

Cleaner (Non-domestic)

Factory Cleaner/Sweeper

Office Cleaner

Workshop Cleaner

812201 Vehicle Detailer (Valet Servicer) Car Washer

831101 Mining Support Worker Centrifuge Pump Operator/Pump Attendant

Mine Survey Recorder

Mineral Ore Processing Labourer

Onsetter Helper

831102 Driller's Assistant Oil Rig Floorman

831301 Builder's Worker Maintenance Person/Coordinator

Road Construction/Maintenance Labourer

831310 Surveyor's Assistant Geological Survey Field Assistant

831310 Geotechnical Assistant

832901 Metal Engineering Process Worker Boilermaker's Assistant/Aide

Fitter's Assistant

832903 Timber and Wood Process Worker Panel Production Worker

832907 Chemical Plant Worker Chemical Tester (Physical/Routine)

Gas Plant Labourer

Paint Factory Hand

832910 Component Fitter Tyre Serviceman/Serviceperson

833301 Freight Handler (Rail or Road) Rail and Road Transport Vehicle Loader

Yard Attendant

833401 Shelf Filler Storeperson Packer/Shelver

Warehouse Worker/Shelver

833402 Store Person Manufacturing Storeperson

Stores Assistant

Supply Operator (Army)

Warehouse Assistant

862918Electrical or Telecommunications Trades Assistant Artisan Aide Electrical

Electrical Helper

Instrument Artisan Assistant

74