Mineral and Petroleum Resources Minister Gwede Mantashe has called for South Africa to press ahead with exploring its offshore petroleum resources, despite ongoing legal challenges that have blocked development in the name of environmental protection.
Speaking at the 5th Southern Africa Oil and Gas Conference in Cape Town, Mantashe said the country has been unable to fully explore its significant offshore petroleum potential due to court orders halting oil and gas projects following environmental outcry.
“Regrettably, we have not yet been able to fully explore and exploit this potential due to ongoing blockages against oil and gas development in the name of environmental protection,” the minister said.
His comments come as global fuel supply uncertainty caused by conflict in the Middle East threatens price increases and supply disruptions for South Africa, which relies heavily on imported petroleum products.
South Africa’s offshore exploration efforts have faced significant legal setbacks. Earlier this year, the High Court set aside environmental authorisation for TotalEnergies’ planned deep-sea oil exploration off the coast near Cape Town, following a challenge by environmental groups Green Connection and Natural Justice.
The court found the environmental authorisation procedurally defective, ruling that key safety information including oil-spill and blowout emergency plans were withheld from public consultation until after approval was granted, denying coastal communities and small-scale fishers the chance to comment.
Environmental groups argued that the exploration would seriously harm marine life and that companies must fully investigate and disclose environmental and social impacts before receiving approval.
Despite these legal challenges, Mantashe maintained that South Africa is endowed with significant offshore petroleum potential, including major gas discoveries in the Outeniqua Basin. The Orange Basin has also emerged as a promising frontier following significant oil discoveries in Namibia, which geological evidence suggests may extend into South African waters.
The minister argued that exploration aligns with the Constitution, which requires securing ecologically sustainable development whilst promoting justifiable economic and social development.
“The truth is that rising oil and gas prices have a direct ripple effect on the cost of living. The lack of access to these resources has an even greater impact, as it can lead to energy poverty, rising unemployment, and the further entrenchment of poverty and inequality,” he said.
Mantashe said the government is reforming its legislative framework to promote the petroleum sector. The Upstream Petroleum Resources Development Act has separated petroleum from mining legislation and established a regulatory framework aimed at accelerating exploration and production.
The minister also announced that the department has engaged with the ministers of environmental affairs and water and sanitation to finalise regulations for shale gas development, with plans to lift the moratorium immediately after regulations are promulgated.
ALSO READ: South Africa to buy gas from US in proposed new trade deal
“This commitment represents an important step towards promoting fairness and regulatory certainty in the development of our oil and gas sector and ensures that these matters do not remain indefinitely suspended in lengthy litigation processes that create investor uncertainty,” he said.
Mantashe assured that government remains committed to ensuring petroleum resources are developed in an orderly, responsible and environmentally sustainable manner whilst advancing social and economic development.
“South Africa must not stand on the sidelines whilst the global energy landscape evolves and whilst our neighbouring countries unlock the value of their resources. We must act decisively, responsibly, and in the national interest to unlock the full potential of our petroleum sector,” he said.
The government is in constant engagement with industry players to ensure uninterrupted fuel availability as global disruptions continue, without immediately using the country’s strategic reserves.
ALSO READ: Hof stop TotalEnergies se Suid-Afrikaanse olie-eksplorasie
