South African Minister of Mineral Resources and Energy, Gwede Mantashe, made a direct appeal to investors at the 30th AOW: Investing in African Energy Conference: “Investors, we are not saying come to South Africa as a tourist destination, we have deposits, come and invest.” Mantashe emphasised the significant untapped potential of South Africa’s oil and gas reserves, urging investors to look beyond the global shift towards renewables and recognise the lucrative opportunities at hand.
Highlighting the success stories of other African nations, Mantashe stated, “Notwithstanding the crusade against oil and gas development in South Africa, it is encouraging that over the last 10 years, the African continent has seen considerable interest in oil and gas blocks with major petroleum players making valuable investments.” He pointed to Eni’s discovery in Côte d’Ivoire and Mozambique’s booming LNG revenue as prime examples of the sector’s potential.
Mantashe expressed strong confidence in South Africa’s own offshore oil and gas reserves, particularly in light of promising discoveries in neighbouring Namibia. “The discoveries of gas and condensate from two exploration wells drilled in Block 11B/12B offshore in the South Outeniqua Basin have also proven that South Africa’s under-explored deep waters have significant potential for oil and gas,” he explained, adding, “we are keen to see drilling happening here in South Africa.”
However, the Minister condemned what he called “unabated and frivolous litigation” against oil and gas exploration by foreign-funded groups, arguing that it creates a climate of uncertainty and discourages investment. “These NGOs must declare their source of funding,” he challenged, “because they are funded to block development.”
“They block development and hide behind protecting the environment,” he said on the sidelines of the conference. “Shell was harassed out of the seismic survey in the East Coast, and they left. They went to Namibia made huge discoveries of oil next door, and there was no demonstration there. That discovery is generating an income for Namibia. We can’t touch our oil and gas,” he said.
Despite these challenges, Mantashe emphasised the government’s commitment to supporting the oil and gas sector and ensuring that South Africans benefit from their natural resources. He highlighted the establishment of the South African National Petroleum Company (SANPC), stating, “To ensure that South Africans enjoy maximum benefits from their national patrimony, their petroleum resources, we have established the South African National Petroleum Company (SANPC).” The SANPC will operate as a state-owned entity, partnering in projects and developing resources independently.
Mantashe also acknowledged the burden of high fuel prices on South Africans, assuring that the government is actively discussing ways to reduce costs, including potentially lowering the fuel levy and the Road Accident Fund (RAF) levy.
In closing, Mantashe reiterated his call to action: “We appeal to the delegates at this conference and the investment community to continue investing [in] the development of oil and gas to enable a prosperous energy outlook for Africa and promote sustainable development.”
ENDS
- Owned by Sankofa Events, AOW: Investing in African Energy is Africa’s leading oil, gas & energy event, uniting industry leaders to develop policy, share discoveries, secure investment, and shape Africa’s energy future. The event runs from 7 – 10 October 2024 at the CTICC 2, Cape Town.
