South Africa is looking to accelerate oil and gas exploration and the development of its resources, which are estimated at 27 billion barrels when it comes to oil and 60 trillion cubic feet of natural gas – as per the Petroleum Agency South Africa – PASA.
This target has been reaffirmed by Gwede Mantashe, the Minister of Mineral Resources and Energy, at the fourth Southern Africa Oil and Gas Conference that was held in Cape Town. The minister went on to highlight that developing these resources can as well help the country’s economy to hit a growth rate of 5% or even 8% while at the same time increasing its fiscal revenue as well.
Government Support Gets Reiterated When it Comes to Exploration Projects
It is well to be noted that in February 2025, the Deputy Director-General of the Department of Mineral Resources and Energy – DMRE had gone on to urge the Parliament to give support for the exploration in the Orange Basin, which happens to be a geopolitical zone that’s shared with Namibia. This political momentum comes amid rising interest in oil and gas exploration across South Africa’s offshore areas that have been bolstered due to the recent exploration in the Namibian sector of the basin that have indeed revived the anticipations for certain novel commercial and viable reserves.
In order to structure the development when it comes to these resources, the government has already planned to establish the South African National Petroleum Company – SANPC by way of a merger between iGas, the Strategic Fuel Fund, and PetroSA (oil). This public entity is anticipated to push the national energy strategy ahead.
International Companies Broaden Their Footprint
There are many foreign firms that have, as a matter of fact, positioned themselves in the offshore blocks of South Africa. In June 2024, Eco Atlantic, by way of its subsidiary Azinam South Africa, went on to acquire a 75% stake in Block 1, with a scheduling of a three-year oil and gas exploration program. In 2024 itself, TotalEnergies went on to acquire a 33% stake in Block 3B/4B, collaborating with QatarEnergy, Azinam, Africa Oil South Africa, and also Ricocure. In February 2025, Petrobras, the Brazilian firm, went on to confirm that South Africa did happen to be a part of its upstream expansion plan.
Technical and Economic Barriers
In spite of the momentum, the development of the oil and gas sector in South Africa is a matter of grave concern because it is indeed subject to many inconsistencies. Before the production can start, the economic viability of the oil and gas exploration projects has to be confirmed, and the complete scope of the reserves ought to be clarified. Technical and environmental as well as financial challenges are going to continue to influence the pace at which the execution is being done. For now, at least the stated ambitions happen to be a part of a long-term plan that needs close collaboration between both private and public stakeholders.
