Minister argues for local oil and gas supplies
South Africa must fast-track the exploitation of its domestic oil and gas resources to mitigate the economic risks posed by global geopolitical instability. Minister of Mineral and Petroleum Resources Gwede Mantashe delivered this message at the Southern Africa Oil and Gas Conference in Cape Town on Monday, March 16, 2026.
According to reports from Engineering News and Business Report, the Minister characterised the current Middle East conflict and the subsequent disruption of global supply chains as a "wake-up call" for the country. He argued that South Africa's heavy reliance on imported refined petroleum products has left the economy acutely vulnerable to market shocks, with significant fuel price increases now considered "unavoidable."
The Minister emphasized that while short-term engagements with industry players are underway to ensure fuel availability, the only sustainable long-term solution is a surge in domestic production.
Resource Potential: He pointed to the "significant offshore petroleum potential" in the Outeniqua and Orange Basins as critical assets that remain underutilised.
Refining Capacity: The Minister called for an expansion of local refining capacity beyond the current output of Natref, Astron, and Sasol Secunda to ensure South Africa can process its own resources rather than remaining a price-taker on the global market.
National Interest: Stating that South Africa cannot afford to "stand on the sidelines" while neighbouring countries unlock the value of their resources, the Minister urged for decisive action to secure energy sovereignty.
Regulatory Challenges and Environmental Opposition While the primary focus was on resource exploitation, the Minister acknowledged that environmental litigation remains a significant secondary obstacle.
"Decision Paralysis": He noted that persistent opposition from lobby groups has consistently blocked development initiatives, leading to what he described as administrative and legal inertia.
Constitutional Balance: The Minister cited the Constitution’s requirement to balance environmental protection with "justifiable economic and social development," arguing that energy poverty and rising unemployment are direct consequences of failing to harness natural resources.
Legislative Fast-Tracking: To resolve these delays, the government is moving to gazette new petroleum regulations by the end of this month and establish the South African National Petroleum Company (SANPC) as a state champion for domestic projects.
The Minister’s call for the "rigorous exploration and responsible exploitation" of offshore basins positions the Western Cape at the centre of a potential industrial resurgence. As a primary hub for maritime logistics, Cape Town is well-positioned to provide the technical support and engineering services required to turn these domestic discoveries into a stabilizing force for the regional economy.