South Africa's Maritime Business Chamber urges faster development of oil and gas reserves

South Africa’s Maritime Business Chamber (MBC) is urging the government to speed up initiatives to tap into the country’s vast oil and gas reserves, Energy Capital & Power (ECP) reported on October 15. The non-government organisation (NGO) emphasised that these resources could bolster energy security and spur economic growth.

South Africa is home to considerable untapped reserves, including an estimated 27bn barrels of offshore oil and over 5.6 trillion cubic metres of potential shale gas reserves onshore. The MBC called for greater investment in infrastructure along the southern, western, and eastern coastlines, urging South Africa to emulate the success of regional peers such as Mozambique, which has already made significant progress in developing its offshore gas fields.

Additionally, the MBC expressed support for the Upstream Petroleum Resources Development Bill, which was presented for endorsement to President Cyril Ramaphosa in May 2024. This legislation seeks to promote economic inclusion, notably by allocating 10% ownership to designated groups and allowing local communities to hold 100% black-owned rights. The Chamber views these provisions as key to driving inclusive growth while ensuring environmental sustainability.

Further, the MBC highlighted recent milestones, including the establishment of petroleum and energy ministries and the acquisition of the Sapref refinery, as signs of the government’s commitment to unlocking South Africa’s energy potential.