AfrOil: South Africa's government touts hydrocarbon potential to drive economy

Oil and gas projects could boost South Africa's gross domestic product by 8%, according to Mineral and Petroleum Resources Minister Gwede Mantashe.

In September 2024, Africa's largest economy sought public comments regarding its intention to investigate a big local basin for possible hydrocarbon deposits.

On October 31, President Cyril Ramaphosa assented to the Upstream Petroleum Resources Development Bill, which aims to promote local exploration and development of oil and gas.

Mantashe said that although "we are getting pinned down not to take these steps", the government will forge ahead with its plan to build a hydrocarbon industry, the African Energy Chamber wrote on November 10. 

Speaking during the African Energy Week held from November 4-8 in Cape Town, Mantashe said gas is "a transitional technology and is part of the green transition."  

Neighbouring Mozambique and Namibia, he added, have witnessed their economies significantly turning around following oil and gas discoveries.

Apart from the onshore Karoo Basin, the country has substantial offshore gas and oil potential as well.  In 2019, TotalEnergies (France) announced a deep-sea gas condensate find but exited the permit in July 2024.

Mantashe, however, said development of the sector must be carried out responsibly.

“Development and environmental stewardship must coexist . . . and we must responsibly manage natural resources," he said, according to the African Energy Chamber.

"Mine responsibly, drill responsibly, protect the climate, indigenous plants and land, but don’t stop developing. If you stop that, you will have consequences further down the line.”

If you would like to read more about the key events shaping the African oil and gas sector, then please click here for NewsBase's AfrOil Monitor.