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South Africa Drives Oil and Gas Expansion Strategies

in Africa, Exploration Development, News
Oil-and-Gas-Expansion
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To promote national economic growth and increase public income, the South African government is working harder to use its great reserves for oil and gas expansion.

According to the Petroleum Agency South Africa (PASA), South Africa wants to speed up the growth of its oil and gas resources, projected at 27 billion barrels of oil and 60 trillion cubic feet of natural gas. Minister of Mineral Resources and Energy Gwede Mantashe underlined this goal during the fourth Southern Africa Oil and Gas Conference in Cape Town to focus on oil and gas expansion. He underlined that growing these resources might help South Africa’s economy to expand by 5%, or perhaps 8%, while raising tax income.

Government Assistance Underlined for Exploratory Initiatives

Tseliso Maqubela, deputy director-general of the Department of Mineral Resources and Energy (DMRE), had previously asked Parliament in February to back Orange Basin exploration, a geological area shared with Namibia. Several businesses, supported by recent finds in the Namibian section of the basin that have renewed hopes for fresh commercially viable reserves, are showing increasing interest in South Africa’s offshore territories. This political momentum

The government intends to create the South African National Petroleum Company (SANPC) by merging PetroSA (oil), iGas (gas), and the Strategic Fuel Fund thus organising the growth of these resources. This public organisation is supposed to advance the national energy plan.

International Businesses Increase their Presence

Many foreign companies have set up shop in South Africa’s offshore blocks. Eco Atlantic bought 75% of Block 1 in June 2024 under its company Azinam South Africa; a three-year exploration campaign was set. TotalEnergies bought a 33% interest in Block 3B/4B that year, working with QatarEnergy, Africa Oil South Africa, Azinam, and Rico Cure. Petrobras, a Brazilian company, said in February 2025 that South Africa was included in its upstream growth plan and oil and gas expansion.

Technical and Financial Obstacles In front

Notwithstanding this drive, South Africa’s oil and gas industry continues to be under many questions. Production cannot start until the projects’ economic feasibility is verified and the complete extent of the reserves is known. The speed of execution will still be affected by technical, budgetary and environmental issues. The stated goals for now are included in a long-term plan that calls for close cooperation between public and private sector participants.

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