1. Welcome Remarks 12 November 2013

2. Fast facts The South African petroleum industry accounts for: - 6.48% contribution to the national GDP; - R267 billion in turnover; - R54 billion in duties and levies; - R6 billion in capital expenditure; - R4 billion in annual payroll; - more than 100 000 jobs (direct and indirect employment); - R3 billion in income tax; and - R99.5 million spent by SAPIA member companies on corporate social investment projects during 2012.

3. Strategic initiatives –Clean Fuels –Climate Change –Health, Safety, Security and Environment –Regulated Price Elements –Security of Supply –Transformation

4. SAPIA Members Integrated Members Non Integrated Members Biofuels manufacturers Fuel wholesalersLPG wholesalers 1. BP Southern Africa 2. Chevron South Africa 3. Engen Petroleum 4. PetroSA 5. Sasol Limited 6. Shell South Africa 7. Total South Africa 1. Mabele Fuels1. AEMCOR 2. Afric Oil 3. Altivex 529 t/a Elegant Fuel 4. Bahlaloga Technology’s 5. Brent Oil 6. Camel Fuels 7. Gulfstream Energy 8. Khulaco 9. KZN Oils 10. Makwande Energy Trading 11. Omphile’s Trading CC t/a Siyanda Petroleum 12. Royale Energy 1. Easigas 2. Oryx Oil South Africa 3. Totalgaz

5. 2013 SAPIA Board of Governors - Christian des Closières (SAPIA Chairperson)Total South Africa - Nizam Salleh (SAPIA Vice Chairperson) Engen Petroleum - Thandi Orleyn BP Southern Africa - Nobuzwe Mbuyisa Chevron South Africa - Olivier Nechad Easigas - Zahir Williams Mabele Fuels - Nosizwe Nokwe-Macamo PetroSA - Pat Mdoda Royale Energy - Maurice Radebe Sasol Oil - Bonang Mohale Shell South Africa

6. Board of Governors Committees 1. Advisory Committee on Climate Change 2. Clean Fuels Task Team 3. Communication Committee 4. Economic Regulation Committee 5. Fuel Specifications Committee 6. Legal Committee 7. Non Integrated Members Forum 8. Petroleum Industry Engineering and Environment Committee 9. Refinery Managers Forum 10. Security Committee 11.Transformation Committee

7. SAPIA staff members

8. Security of Supply Seminar ⁻ SAPIA offer many services, today we are offering seminar targeting members and other stakeholders ⁻ Seminar present an opportunity to learn from experts in the industry ⁻ Opportunity to demonstrate SAPIA alignment with the National Development Plan. ⁻ SAPIA support maintaining and expanding infrastructure to facilitate economic growth. ⁻ SAPIA members have been investing in a variety of infrastructural areas such as storage infrastructure, logistical infrastructure and infrastructure near ports. Wood Mackenzie in the “UK Downstream Oil Infrastructure” study concluded that: ⁻ Low returns and weak demand growth has led to a lack of discretionary investment in UK downstream infrastructure and industry consolidation ⁻ Most investment has been to comply with regulatory requirements (e.g. HSE, fuel quality standards, petrol vapour recovery), with a number of terminals closing due to the amount of investment required to achieve compliance ⁻ Limited investment has been made by independent storage companies and traders but these have been largely confined to coastal import terminals rather than inland logistics

9. Security of Supply Seminar ….. ⁻ Increasing regulatory constraints (including those relating to planning consents, RTFO costs, and ‘Containment Policy’) are forming a barrier to investment in new infrastructure ⁻ Capital budgets are constrained and expenditure required for ‘stand still 'investment limits the potential for discretionary spend ⁻ The main incentive to invest is potential financial return ⁻ Other incentives may be required to ensure future supply resilience (ability of the supply infrastructure to deal with unexpected disruption at one or more locations) ⁻ The key issue is how to sustain the current logistical capacity given the lack of investment over a long period of time ⁻ While the Containment Policy mandates investment in terminals, changes in land use/planning policy threaten the continued operation of some existing facilities The conclusions by Wood Mackenzie may be relevant to South Africa! The whole day is dedicated to downstream fuels infrastructure.

10. End Thank you