e-Procurement Supplier Awareness Session The Petroleum Oil and

e-Procurement Supplier Awareness Session The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

AGENDA Opening and Introduction Sagran Naicker Overview & Procurement at Petro. SA Comfort Bunting Business Processes Comfort Bunting Demonstrations Sagran Naicker / Mluleki Ntlemeza Christina Meyer / Alan Goodway Q&A & Closing ALL The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

OBJECTIVES OF THIS DISCUSSION 1 • Give an overview of the procurement process at Petro. SA 2 • Give an overview of the electronic procurement process at Petro. SA 3 • Understand the applicable laws and legislation governing procurement at Petro. SA 4 • Common understanding of Supplier’s, User’s and Procurement’s requirements Aligned Suppliers, Users and Procurement community The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

PROCUREMENT PHILOSOPHY Section 217 of the South African Constitution states that all public sector procurement shall be fair, transparent, competitive, cost effective and equitable The PPPFA gives effect to section 217 of the constitution by providing a framework for the implementation of a procurement policy, as provided for in the Constitution The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

Petro. SA’S POLICY INSTRUMENTS AND PROCEDURES ARE ALIGNED WITH RELEVANT LEGISLATION Petro. SA policy and procedures National legislation / policy • Constitution of SA • BBBEE • PFMA • Procurement • BBBEE Act, 2003 • Employment Equity • Skills development • Corporate Social Investment • Supplier development Aligned policies and procedures • PAJA • The Employment Equity Act • The Skills Development Act • Preferential Procurement Policy Framework Act • Codes of Good Practice for BBBEE • Liquid Fuels Industry Charter • NIPP/CSDP The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

PROCUREMENT AT Petro. SA Where do we advertise? Petro. SA advertises tenders/quotations for goods and services on the internet (www. petrosa. co. za or www. procurement. petrosa. com) or in addition, in the printed media, the Government Tender Bulletin (www. info. gov. za/documents/tenders/bulletins. htm ), SASDA (www. sasda. co. za), Quantum How do we select? Through our auction, quotation and tender process The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

EVALUATION OF TENDERS Phase 1: Elimination Phase 2: Tender Assessment • Deals mainly with non-compliance with specification, incomplete tenders, inaccurate & misleading information etc. • Not in the top 5 scoring companies • • Deals with the commercial aspect of the tender. This phase also deals with BEE. Detailed technical assessment Detailed due diligence • Three of the top scoring companies are submitted to the Procurement Committee / CEO / Board for approval. Phase 3: Approval Process The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

WHAT DO SUPPLIERS NEED IN ORDER TO SUPPLY GOODS & SERVICES TO Petro. SA? 1. You need a purchase order generated on the SAP system. This document can only be obtained from the Group Supply Chain (Procurement) Department 2. You need a written contract signed by the CEO, CFO or duly authorised VP. No other employee of Petro. SA is authorised to sign a contract on behalf of Petro. SA v Employees (irrespective of level within the organisation) are not empowered to instruct a Supplier to provide goods or services without any of the above documents. The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

BEE COMPONENTS Conducive Skills Dev / Employment Environment Capacity Bld Equity Preferential Procurement Equity Participation Financial and Supplier Other Support Development Corporate Social Investment Implementation, Evaluation, Monitoring and Communication The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

WHAT IS e-PROCUREMENT? e-Procurement is to Procurement what e. Mail is to Mail and is simply the business-to-business purchase of supplies and services using the Internet e-Procurement and e. Mail share the following benefits: Automation and simplification, Reduced cycle times leading to increased productivity, improved tracking and transparency Mail e’Mail Procurement e’Procurement The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

BENEFITS of e-PROCUREMENT Generic Compliance benefits - arising from increased use of approved suppliers with whom we have negotiated advantageous contracts Transaction benefits - arising from reductions in the cost of processing manual procurement transactions Information benefits additional negotiating power derived from better procurement information, and identification of opportunities to consolidate spend across business units and streams Transferred supplier benefits - price reductions offered by suppliers because of increased efficiencies and higher volumes Project benefit - price reductions in construction contracts etc derived from contractors' use of the client’s enhanced spending power Web-powered sourcing savings - arising from internet capabilities such as reverse auctions Petro. SA Savings derived from driving delivered pricing down – estimated at ± 5%pa Improved and reduced turnaround times Standardised approved tender documents Standardised procurement processes, and filing system Improved transparency Reduction of transgressions & possible corruption Automation of tender processes Electronic evaluations and auto calculations of scoring Up to date supplier database with correct categorisation Up to date market information/intelligence (management reporting) The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

BENEFITS OF E-PROCUREMENT FOR SUPPLIERS Generic Benefits • e-Procurement provides suppliers of all sizes access to opportunities at Petro. SA • ability to receive standardized electronic orders • manage complex bidding opportunities • migrate customer service functions online • reducing the overall cost of sales Practical Benefits • reduces much of the manual work associated with offline processes and paper-based orders • freeing sales representatives to spend more time building valuable relationships with their customers • reduce tendering turn around times The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

BENEFITS OF E-PROCUREMENT FOR SUPPLIERS Practical Benefits • Various mechanisms to submit responses, lowering risk of loss of information • Warning signals if vital information has not been entered, making sure that critical information required by Petro. SA is not overlooked. • No need to submit tax clearance certificates, BEE certificate and registration questionnaires with every tender • Manage own details • No pressure to read newspapers for upcoming tenders • Supplier is allowed to respond, or re-submit responses as often as is necessary until the closing date and time of the tender / contract amendment. • More structured tenders / contract amendments making it more understandable • Historic, electronic data of previous tenders and / or contract amendments • Less time and manpower required to respond to tenders / contract amendments • Improved efficiency • Reduced costs • Sustainable competitiveness The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

WHAT DOES THIS MEAN FOR SUPPLIERS? Can I still have contact with the Petro. SA Procurement Department? • Absolutely, it is essential that your relationship with us remains intact, and with the improved processes from e’Procurement, you should have more time to work directly with Petro. SA buyers, to review product information and demonstrate new services. What technical infrastructure do • To participate in e-Procurement, suppliers will need to suppliers need in order have access to the Internet. to participate in e. Procurement? Will suppliers be charged for participating? • There are no set-up or ongoing subscription fees charged to suppliers. The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

e-Procurement – Business processes • supplier registration • updating supplier information • Auctions • quotations • Tendering • e. RS • uploading attachments / documents The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER REGISTRATION PROCESS http: //www. procurement. petrosa. com/ The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER REGISTRATION PROCESS The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER REGISTRATION PROCESS Registration phase 1 5 screens to fill in The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER REGISTRATION PROCESS The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER REGISTRATION PROCESS Registration phase 2 Fill in all screens The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER REGISTRATION PROCESS Updating your information The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER REGISTRATION PROCESS Updating your information Fill in all screens The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

SUPPLIER ACCREDITATION PROCESS The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

THE E-PROCUREMENT PROCESS The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

THE PROCESS – CONTINUED (ISS) The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

ACCESSING TENDERS / QUOTATIONS / AUCTIONS http: //www. procurement. petrosa. com/ The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

ACCESSING TENDERS / QUOTATIONS / AUCTIONS The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

QUOTATIONS Supplier submits quotations • Submit the quotation online or • Download the e. RS package, completes quotation, then submit later For online quotation select item number The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

QUOTATIONS Supplier submits quotations The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

QUOTATIONS Supplier submits quotations Repeat the process for all line items The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

QUOTATIONS Uploading Documents / Attachments The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

QUOTATIONS Supplier submits quotations The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

TENDERS The Supplier clicks on My Tenders Select tender The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

TENDERS Supplier submits tenders • Submit the tender online or • Download the e. RS package, fill in tender, then submit later For online tender select item number The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

TENDERS Supplier submits tender The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

TENDERS Supplier submits tenders Repeat the process for all line items The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

TENDERS Uploading Documents / Attachments The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

TENDERS Supplier submits tenders The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

e’Auctions The Supplier Logs in on the Site Dashboard The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

e’Auctions The Supplier clicks on all auctions The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

Auctions The Supplier selects auction and bids Closed Auctions: Click on “My Auctions”. Open and bid Dedicated Auctions Open Auctions: Click on “All Auctions” first and express interest by clicking on add. Open in “My Auctions” and bid The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

Auctions The Supplier Bids The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

Auctions Auto Bids The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

THE e. RS PROCESS The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

Supplier Help Desk Practical Benefits A fully operational Supplier Care Centre, situated at Intenda’s offices in Centurion, that provides support for e. RS, Globale. RFx. com, suppliers registrations and Tender and Contract Management will offer TELEPHONIC support for suppliers registered on this portal. It’s hours of operation are: • 08 h 00 to 17 h 00 Monday to Friday (South African time) • Service is free of charge • The Supplier Care Centre is available on Saturday and Sunday from 09 h 00 to 18 h 00 (South African time). This support is available via the cell phone number published on the portal under Contact Us. • Support is also offered via email using support@intenda. net. Note: This help desk provides process support only. Queries on content will be referred to Petro. SA. The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

Supplier Help Desk – Contact Numbers Contact Us • 08 h 00 to 17 h 00 Monday to Friday (South African time) +27 (0) 12 663 8815 • 09 h 00 to 18 h 00 Saturday and Sunday (South African time). +27 (0) 83 554 8331 The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

Questions The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07