15 October 2002
Master of Ceremonies,
Minister Mlambo-Ngcuka,
Distinguished Guests,
Ladies and Gentlemen:
Thank you for affording me this opportunity tonight, to be part of the launch of PetroSA and thus participate in the creation of an important vehicle for the enhancement of our country's involvement in the strategic natural resource sector of oil and gas.
I am happy with the progress made to form PetroSA through the merger of Mossgas, Soekor, and other assets that are managed by the Strategic Fuel Fund (SFF). As we are all aware, this work began in 1998 with the adoption of the White Paper on Energy Policy. Subsequently initiatives taken by the Ministers and their department have finally led us to PetroSA's launch today.
I would therefore like to thank the Ministers, the officials of the Department of Minerals and Energy and the various state corporations for the work they have done in this regard.
It is important that we have created this National Petroleum, Gas and Oil Corporation of South Africa, our national petroleum company, so as to strengthen the position of our country in this important and strategic industry.
All of us should ensure that we run this asset of our people efficiently so that it becomes more effective in its work of the exploration and exploitation of oil and natural gas, as well as the production and marketing of synthetic fuels produced from the offshore gas at the world's largest commercial gas-to-liquids (GTL) plant in Mossel Bay.
PetroSA, being a pioneer in the field of gas-to-liquids production, must through on-going innovation, investment in research and skills training, continue to occupy this leading position in the gas-to-liquids industry.
Together we should do whatever we can to bring into fruition the plans of PetroSA to diversify into other associated petroleum industry activities like petrochemicals and pipeline services.
Although our production of oil and energy is still small, it is encouraging to see that we are producing a range of niche high quality products that are also environmentally friendly and conform to the demanding standards of the international markets.
Accordingly, it is also important that we do whatever we can to ensure that we increase the necessary capacity within the PetroSA so that this company is able to continue, as a matter of urgency, to explore and develop South Africa's natural resources of oil and gas in a competitive manner that also brings the necessary benefits to our country and people.
The more effective PetroSA becomes, the better will it be in a position to contribute positively to our economy and ensure that the country makes the crucial savings as well as earning the necessary revenues, thus releasing the much-needed resources towards meeting the main socio-economic challenges of development, poverty eradication and improving the living conditions of all our people.
Clearly, we all have a duty and responsibility to achieve the targets that PetroSA has set itself. These include the provision of low cost energy both to South Africa and the Southern African Region, as well as increasing the capacity of the industry to create employment.
In this way, we will be contributing substantially to the reconstruction and development of our country as well as adding to the efforts and processes aimed at the regeneration of our continent.
The provision of affordable energy and the building of the necessary corollary infrastructure on our continent is one of the central challenges that we have identified in our New Partnership for Africa's Development (Nepad). The recent United Nations World Summit on Sustainable Development (WSSD) also resolved to work urgently to ensure that all the people of the world have access to affordable energy.
It is important therefore that the work we do at PetroSA is aligned to the needs of our country as well as the challenges enunciated in NEPAD together with the recommendations identified by the World Summit on Sustainable Development.
An important element in the usage of Natural Gas is the promotion of energy security through diversity. I am sure that this will add to industrial efficiency and ensure that we move away from reliance on one source of energy.
Again, this will also go a long in addressing the environmental concerns we all share, including the reduction of harmful emissions that contribute to environmental damage and degradation.
It is in this context that we commend PetroSA for its commitment to the safety and health of its workers, the high quality of its products and processes, as well as the conservation and care of the environment in which it operates. I am informed that as part of this commitment the company has an integrated management system for safety, health, environment management and quality control.
This commitment made it possible for the company to win the National Association of Clean Air (NACA) award, for clean air and environmental care at its Mossel Bay refinery operation.
Furthermore, I am certain that we will agree that PetroSA must act as an agent of change and transformation in the Oil and Gas Industry by ensuring adequate participation of all South Africans and working to increase the capacity of all our people to participate in the various elements of this industry.
In this regard, we must create an environment that will allow for the acceleration of the programme of Black Economic Empowerment based on a clear policy aimed at the full participation of people from disadvantaged communities. This will further enhance the role of the energy sector as a leader in the struggle to deracialise our economy and society.
Concomitantly, we should pursue a plan of skills development, particularly in specialized technical and management fields, again informed by our strategic objective of empowering people with disabilities, women and the black people of our country.
It is important for PetroSA to be a truly modern South African company that is seized of the challenge facing all of us, to transform our society towards a prosperous and developed country built on the firm pillars of non-racialism, non-sexism and democracy.
There is no doubt that there are limitless possibilities for PetroSA to be a strong and successful global entity. The potential is evident and I am confident that the people that have been assigned to steer this company to great accomplishments have, amongst themselves, the expertise, the will and determination to make all of us proud.
Operating within the context of an industry that is truly global, PetroSA will form its own system of international partnerships that should benefit everybody concerned. We wish the company well in this regard as well.
On behalf of our Government and people, I am honoured and pleased to convey to the Board, Management and workers of PetroSA success in all their future endeavours, convinced that it will come to join the front ranks of our corporate citizens that will and must play a leading role in the process of the formation of the new South Africa.
I thank you.