© 2015 Chevron

Presentation to

National Assembly’s Portfolio

Committee on

Trade & Industry

24 April 2015

© 2015 Chevron

Outline

1. Introduction

2. Alignment with Policy: a) Transformation

b) Economic Development

c) CSI

3. Risk to local refining viability – Deferral of Clean Fuels

4. A win-win solution: Promotion and Protection

5. Call for action

2

© 2015 Chevron

We are proud to be Chevron South Africa

3

Investing in people, partnerships and

performance

© 2015 Chevron

Overview of Chevron South Africa

1911 1st Caltex cargo imported into

South Africa

1955 Lubricants Plant in Durban

1966 Refinery in Cape Town

Level 2 B-BBEE Top tier integrated oil

company.

World class HES Consistent performance.

Local Capacity Employ and train locals and

procure from local suppliers.

Caltex Brand Top petroleum brand with 845

service stations

Social Investment Key focus areas: education,

health and economic

development. Reach 85,000

people annually.

13,500 Jobs sustained in Western

Cape.

4

© 2015 Chevron

Our Transformation journey

5

Important employer in the Western Cape

and role-player in the South Africa

economy for over 100 years.

Transformation is a key value for us.

Speaks to the hearts and minds of all our

stakeholders.

We support and continue to align to

Government Policy.

Level 2 B-BBEE contributor across

manufacturing and marketing operations.

© 2015 Chevron

Chevron has 25% Direct Black Ownership

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African

Legend Ditikeni

Employee

Trust

Chevron

South Arica

Chevron

75%

23%

2%

Lithemba Santaco

Consortium

© 2015 Chevron

Transformation journey based upon sustainable

programmes

7

2008

Level 5

2013

Level 2

2009

Level 4

2010

Level 3

2011

Level 3

2012

Level 3

© 2015 Chevron

Continued growth in our transformation journey

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Black employees 80%

Board participation :

60% Black Board Members.

30% Black Women Board Members

– 43% of Executive Directors are Black

– 29% of Executive Directors are Black

females.

© 2015 Chevron

Annual Chevron spend

Majority of services are sourced locally (over 90%).

Chevron SA spends R5 billion annually on local suppliers.

– Close to 100% on B-BBEE accredited suppliers.

– 14% on QSE’s and EME’s.

– 25% on black owned companies.

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Chevron’s refinery spends over R700

million annually on local suppliers, all of

which is through B-BBEE accredited

companies and 25% through black

owned companies.

© 2015 Chevron

Economic contributions

Stimulates production value of R95 billion in the SA economy.

Contributes R18 billion in GDP and R21 billion in indirect taxes annually*

Contributes R200m per year to

the economy of Saldanha. Purchased R3 billion crude and

product imports through B-BBEE companies in 2014 alone.

Invested R412 million in routine maintenance and safety inspections at refinery in 2015 with 3000 additional contractor jobs.

10 * 2013 Econex Study

© 2015 Chevron

Chevron in the Community

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Focus

Areas

Education • STEM

• Literacy

• Intervention

Projects:

DuNoon Libraries

Amy Biehl

Maths & Science

Bosmansdam

Laboratory

Cape Town

Science Centre

Economic

Development • Develop

workforce &

advance

vocational

training

• Support local

small business

Projects:

Skills Centre

IMAGE program

Health • HIV/AIDS

• Home Base

Care

• Health Care

Access

Projects:

Desmond Tutu

HIV Foundation

North Star

Foundation

IMAGE program

© 2015 Chevron

Impact of Clean Fuels deferral on local refining

Refinery upgrades decisions deferred - post 2020?

Local market for low sulphur fuel grows, yet limited capability to produce locally.

Imports displacing market – threatening viability of local refineries.

New import infrastructure exacerbates threat unless import regulations are amended.

These amendments would maintain viability of local refining industry until refineries are upgraded.

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Amendment of the fuel import guidelines is required to ensure

viability of local crude refineries until refineries are upgraded.

© 2015 Chevron

Protection versus Promotion

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Local Refining (Chevron)

• Level 2 BBBEE

contributor

• 13 500 Jobs

(direct and indirect)

• R1b spend

• R300m annual capex

• Level 4 BBBEE

contributor

• 151 Jobs

(direct and indirect)

• R650m once off

investment

New Coastal Storage

(Burgan)

We believe there is a way that local crude refineries and new coastal

storage facilities can co-exist.

Co-existence is possible.

© 2015 Chevron

Protection of local refineries

New coastal storage facilities with import capabilities threaten

local crude refining.

Local refining and coastal storage can co-exist – however

regulatory intervention is needed.

Amendments of import guidelines can ensure outlet for local

crude refinery production.

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Your help is needed:

To ensure appropriate intervention is taken.

© 2015 Chevron

Thank you

15 Classified - Subject to Attorney Client Privilege

Chevron South Africa