Mantashe urges faster oil and gas development amid global fuel uncertainty
Mineral and Petroleum Resources Minister Gwede Mantashe has called for South Africa to accelerate exploration and development of domestic oil and gas resources to cut reliance on imported fuel and bolster energy security. Speaking at the Southern Africa Oil and Gas Conference in Cape Town, he warned that geopolitical tensions and supply chain disruptions are straining global fuel markets and exposing import-dependent countries to volatility.
Pressure on fuel markets
Mantashe noted that ongoing conflicts and shipping disruptions have tightened supply chains, raising risks for nations that depend heavily on foreign petroleum products. He said his department is working closely with industry to maintain stable fuel availability in the domestic market and avoid drawing on strategic reserves unless necessary.
While short-term measures are in place, he emphasized that the only durable solution is to build up local production capacity. According to Mantashe, sustained exploration and responsible development of South Africa’s petroleum resources are essential to reduce exposure to global shocks and stabilise prices over time.
Unlocking offshore potential—and navigating opposition
South Africa’s offshore basins hold notable promise, including gas finds in the Outeniqua Basin. Major discoveries in Namibia’s Orange Basin have also raised expectations that similar prospects may extend into South African waters. However, Mantashe criticised persistent legal challenges by environmental groups, arguing that court actions have repeatedly delayed exploration and development projects.
Industry bodies have sought broader political support to advance these initiatives. Mantashe indicated that several associations have requested a meeting with the President to make the case for oil and gas as a future growth driver—an outlook he said is not yet a majority view within cabinet.
Nuclear projects move through environmental processes
Energy diversification remains a parallel priority. Eskom is advancing environmental processes for additional nuclear capacity, including site assessments for a third nuclear power station, with Thyspunt in the Eastern Cape and Bantamsklip in the Western Cape under consideration. The utility recently secured final environmental authorisation for a second nuclear plant at Duynefontein, adjacent to the existing Koeberg station near Cape Town.
Consultants aim to complete the environmental authorisation for a third nuclear site by February 2027, with potential appeals expected to conclude by May 2027. Mantashe acknowledged that nuclear plans, like oil and gas projects, have also faced resistance, but argued that a balanced energy mix is necessary for long-term resilience.
Growth, jobs, and responsible development
Mantashe framed resource development as a social and economic imperative, contending that South Africa—and the African continent more broadly—cannot remain poor while sitting on significant natural endowments. He called for responsible, regulated development that supports inclusive growth, job creation, and poverty reduction, while respecting environmental standards and community interests.
Regulatory reforms to attract investment
The minister outlined measures to improve policy certainty and unlock capital in the upstream sector. Central to this is the implementation of the Upstream Petroleum Resources Development Act, which introduces a dedicated regulatory framework for exploration and production. Regulations to operationalise the Act are expected by the end of March following engagement with industry stakeholders.
He also confirmed that the government is moving closer to lifting the moratorium on shale gas development once environmental regulations are finalised, positioning shale as another potential pillar of domestic energy supply—subject to strict safeguards.
Acting in the national interest
Mantashe urged urgency as regional peers advance their own energy projects and the global energy landscape evolves. He argued that South Africa should not be left behind while neighbouring countries unlock value from similar resources. The minister’s message was clear: act decisively and responsibly, within the bounds of environmental law and public interest, to realise the full potential of the country’s petroleum sector and strengthen energy security for the long term.
