South Africa’s two principal oil industry associations, the South African Petroleum Industry Association (Sapia) and the African Mineral and Energy Forum (Amef), have signed a cooperation agreement in the common area of liquid fuels in recognition of their common interests and goals.
Sapia’s membership comprises the industry’s largest multinational energy groups — Engen, Shell, Total, BP, Caltex and Sasol — while Amef was formed in 1998 by black-owned energy groups including Afric Oil, Excel and Zenex to help promote black economic empowerment in the liquid fuels and mining industries.
Unveiling the agreement, which was signed on December 22, Sapia and Amef said that they had for some time been exploring ways of working together more closely.
The possibility of merging was discussed, but after much consideration it was agreed that this was not possible because while Amef’s activities and membership extend beyond liquid fuels into other forms of energy and into mining and minerals, Sapia did not wish to extend its sphere of activities beyond liquid fuels.
The associations had agreed that formal cooperation in the common area of liquid fuels would result in both organisations being better able to meet their objectives. In furtherance of this agreement, they signed a cooperation agreement in terms of which the two associations undertook to cooperate on matters of common interest in the liquid fuels industry.
The areas of common interest that were identified include environmental issues; safety and security issues; future fuel specifications; promotion of black economic empowerment, especially procurement and human development issues; certain regulatory and policy issues; taxation on petroleum products; the sustainability of the industry; and provision of information on the industry.
The process will be made tangible by Amef having representation on the Sapia committees and sub-committees that deal with these matters of common interest. The two associations believe that this cooperation in the areas where interests overlap, namely the liquid fuels industry, will be in the interests of both the industry and South Africa as a whole. — I-Net Bridge