Minister Gwede Mantashe: 4th Southern African Oil and Gas Conference

Master of Ceremonies, Adrian Strydom
Chairman of the South African Oil and Gas Alliance, Mr Mthozami Xiphu
Executive Chairman of African Energy Chamber, Mr NJ Ayuk
President and CEO of Energy Chamber of Tranidad and Tobago, Dr Dax Driver 
Acting CEO of Petroleum Agency of South Africa, Dr Bongani Sayidini 
Chairperson of the South African National Petroleum Company, Mr Sipho Mkhize 
Board Chairperson of the Central Energy Fund, Ms Ayanda Noah
Team DMPR being led by the DG, Mr Jacob Mbele

Distinguished Guests, Ladies and gentlemen,

It is a great pleasure that I, once again, welcome you to South Africa on the occasion of the 4th edition of the Southern Africa Oil and Gas Conference, under the theme Enabling Sustainable Oil and Gas Development For a Diversified Future.

Allow me a short diversion from today’s topic to reflect on recent developments where our National Treasury delivered the 2025 Budget under the Government of National Unity. The budget, which had to be revised for the first time in the history of the democratic government, highlighted a myriad of challenges that negatively affect inclusive economic growth, employment creation, and consequently aggravate poverty and inequality.

I am mentioning this because the exploration, extraction and monetising of our indigenous oil and gas resources could be a game changer that will bring more revenue to the fiscus, and eliminate the need to consider raising taxes.

South Africa is endowed with an abundance of energy sources which need to be commercialized to drive inclusive economic growth, job creation and development. Gas and oil have played second fiddle to other energy sources for far too long in our country and on the continent. This has often resulted in foreign NGO’s wanting to veto development. This is not correct as we see how these energy sources continue to drive development and industrialization elsewhere.

The main focus has primarily been on renewables. While we diversify our energy sources to future-proof our development, we will aggressively pursue oil and gas, coal and renewables.

The country needs secure supply of diverse energy sources. As government we are committed to a mix of energy sources that will enable and accelerate development in country. As we reported previously, the last decade has seen increased interest in South Africa’s oil and gas blocks, and gas companies are acquiring new geophysical data, in-depth basin analysis, and to a lesser extent drilling of exploration wells. We’re encouraged by companies which continue to drill exploration wells. Such bold risk-taking and investment will be rewarded.

Major discoveries off the coast of Namibia that extend southwards into South African waters have shown that the region has substantial unexplored reserves and has drawn great interest from major petroleum companies. TotalEnergies, Shell and Galp have made eight discoveries across three blocks in Namibia’s Orange Basin, representing an estimated
3.5 billion barrels of potentially recoverable oil.

The South African government wants accelerated oil exploration in the country’s waters, we believe developing the country’s oil and gas resources could boost the country’s economic growth rate to 5% and possibly 8%.

Government took a decision to rationalise some of our State-Owned Entities (SOEs) to form the South African National Petroleum Company (SANPC). The SANPC is a strategic intervention by government to create a state-owned national company to actively pursue oil and gas projects.

Considering the increased global demand for natural gas, government has moved with speed to finalize the Gas Master Plan to achieve a stable and growing economy.

The Gas Master Plan is designed to complement existing energy policies and contribute to an integrated energy planning approach for the country as outlined in the updated Integrated Resources Plan. It provides a framework for the role of natural gas in the energy mix and gives policy direction to industry.

Its objective is to ensure that Government is able to diversify supply options from local and international markets. Furthermore, to facilitate the development an efficient, competitive and responsive energy infrastructure network such as gas storage facilities, liquefied natural gas import facilities, pipeline networks and regasification plants. Through this, the Plan would also enhance localisation, create jobs and enable inclusive economic growth.

We have also noticed that Europe is looking to Africa to diversify its gas supplies. While this presents an opportunity to earn foreign revenue, we should ensure that we do not export our gas at the expense of domestic and regional markets.

It is imperative for SADC countries to be resolute in their efforts to unlock oil and gas exploration and development. This further presents SADC countries with an opportunity to determine conditions that will alleviate global oil and gas prices by developing their own resources.

There must be a concerted effort among African nations to ensure that the oil and gas sector grows and thrives through investments in the upstream development for the economic prosperity of our nations.

The need to accelerate the exploration of oil and gas both onshore and offshore is urgent to reduce South Africa’s dependency on foreign oil and mitigate the risk caused by geopolitical tensions that threatens the country’s security of energy supply.

I am confident that in your deliberations over the new few days you will add more meaningful contributions to this pressing need to future-proof this opportunity and follow that up with a tangible show confidence in this industry to inspire more rapid development in the region’s oil and gas sector.

I thank you.

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