KEY POINTS
- Mantashe urged for petroleum to be treated as a key energy source.
- The Upstream Petroleum Resources Bill could drive significant growth.
- Discoveries in Namibia may extend into South Africa’s Orange Basin.
Gwede Mantashe, South Africa’s Minister of Mineral and Petroleum Resources, stressed the significance of petroleum in the nation’s energy mix during his speech at Africa Oil Week on Tuesday, saying that it “must be given its recognition, given its rightful place.”
Mantashe pushes for recognition of petroleum in South Africa’s energy mix
Mantashe urged discussion of petroleum as a vital energy source, pointing out that decreased gasoline prices are a direct result of better energy markets. “Basic fuel prices have decreased for the fifth consecutive month as a result of improved energy markets, protecting consumers from the rising cost of living,” Mantashe stated.
The Minister talked about how the South African government is still working to lower the cost of fuel and electricity as part of its plan to lower living expenses. The Road Accident Fund (RAF) fee is one of the fuel levies that the government is looking into reducing, he continued.
Upstream Petroleum Resources Bill expected to fuel economic growth
The Upstream Petroleum Resources Development Bill is a “historic step” for South Africa’s petroleum industry, according to Mantashe, who underlined its importance. He emphasised that the measure guarantees that petroleum will not be “regulated as an appendage to other industries” and that the industry’s fair development will be aided by its passage.
It is anticipated that the bill, which has been approved by both chambers of Parliament and is awaiting the president’s signature, will encourage expansion in the upstream petroleum sector. Mantashe emphasised that if the law is passed, it might raise South Africa’s GDP to 8%, which would be comparable to Namibia’s growth trajectory—which has been supported by recent discoveries of oil and gas.
ESI Africa reported that Mantashe was optimistic about South Africa’s prospects for oil and gas development, especially in light of the significant discoveries made in Namibia’s Orange Basin. He mentioned some South African exploration initiatives, such as Block 11B/12B in the Outeniqua Basin, which has demonstrated “significant potential” for oil and gas. Mantashe also mentioned the advancements in the Orange Basin, where drilling operations are scheduled to start in 2026.
He is hopeful about the sector’s expansion despite TotalEnergies’ recent withdrawal from the 11B/12B block and urged investors to collaborate with other operators to capitalise on the nation’s untapped resources. He emphasised the potential of shale gas in the Karoo Basin, subject to regulatory approval, and asked investors to get in touch with the government to investigate South Africa’s “many offshore blocks.”
