- Government in ongoing talks with petroleum sector to secure alternative fuel supplies amid global disruptions.
- Minister Gwede Mantashe calls for accelerated domestic oil and gas exploration to reduce import dependence.
- Legislative reforms under way to unlock offshore and shale gas resources and strengthen energy security.
The South African government is maintaining continuous engagement with petroleum sector stakeholders to safeguard fuel availability as global supply disruptions place pressure on the market.
Addressing the 5th Southern Africa Oil and Gas Conference in Cape Town, Mineral and Petroleum Resources Minister Gwede Mantashe said authorities are working closely with industry players to ensure stable fuel supply without immediately drawing on the country’s strategic reserves.
The talks follow supply disruptions linked to conflict in the Middle East, which have contributed to sharp increases in global fuel prices.
According to Mantashe, the Department of Mineral and Petroleum Resources is exploring alternative supply options with industry participants to ensure that fuel remains available in the domestic market.
He noted that countries heavily dependent on imported refined petroleum products are particularly exposed to volatility in global markets.
Mantashe warned that while uncertainty remains around potential supply disruptions, significant fuel price increases are becoming increasingly difficult to avoid. Import reliant economies, he said, remain vulnerable to global shocks.
He argued that a long term solution lies in developing domestic oil and gas production through expanded exploration and responsible resource development.
South Africa is believed to have significant offshore petroleum potential, including major gas discoveries in the Outeniqua Basin. The Orange Basin has also attracted strong industry interest following major oil discoveries in neighbouring Namibia, with geological evidence suggesting the basin could extend into South African waters.
However, progress in developing these resources has been slowed by legal challenges from environmental groups opposing oil and gas exploration.
Advancing reforms to strengthen the regulatory environment for the petroleum sector
Mantashe said resource development must balance environmental protection with economic and social development as required by the Constitution. He added that rising oil and gas prices have a direct impact on the cost of living, while lack of access to energy resources can contribute to energy poverty, unemployment and widening inequality.
The minister emphasised that responsible oil and gas development could support industrialisation and contribute to GDP growth while creating employment opportunities.
Government is therefore advancing reforms to strengthen the regulatory environment for the petroleum sector.
A key milestone is the enactment of the Upstream Petroleum Resources Development Act, which separates petroleum regulation from mining legislation and establishes a dedicated framework aimed at accelerating exploration and production.
Industry submissions on the new regulatory framework have been reviewed and the department aims to publish implementation regulations by the end of March.
At the same time, government is progressing amendments to the Petroleum Products Act. Following public consultations on the draft Petroleum Products Bill, the legislation is undergoing certification before submission to Cabinet and later to Parliament.
These reforms are intended to promote equitable access to petroleum resources while supporting long term development of domestic supply and reducing reliance on imported refined fuels.
Mantashe also confirmed that discussions with the Ministers of Environmental Affairs and Water and Sanitation are under way to finalise regulations governing shale gas development.
Once the regulations are gazetted, the department is prepared to lift the existing moratorium on shale gas exploration. The move is expected to improve regulatory certainty and reduce prolonged legal disputes that have discouraged investment in the sector.
The minister reiterated that South Africa intends to develop its petroleum resources responsibly while ensuring environmental sustainability and delivering economic and social benefits.
He added that the country must act decisively to unlock its petroleum potential as the global energy landscape evolves and neighbouring African states move ahead with resource development.
Author: Bryan Groenendaal
