Staff Reporter
CAPE TOWN, Sept. 14 — South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, has underscored the significance of substantial offshore oil and gas discoveries in Namibia over the past two years, emphasizing their importance not only for South Africa but also for the broader region and the continent as a whole.
Speaking at the Southern Africa Oil & Gas 2023 conference in Cape Town, Mantashe noted that some of these oil reserves extend into South African waters, further enhancing their strategic importance.
Mantashe drew parallels with Guyana’s oil and gas sector, which experienced significant growth and development following its initial discovery in 2015. He highlighted the potential for economic prosperity achievable through oil and gas production.
However, Mantashe also expressed concerns about the hindrances faced by the oil and gas development sector in South Africa. He pointed to legal challenges posed by non-governmental organizations (NGOs) that have taken projects to court as early as the seismic survey stage. He suggested that these NGOs, often funded by foreign entities, may have intentions to impede the development of smaller emerging countries.
Mantashe stressed the potential for South Africa’s GDP growth, estimating it could reach 5.8% if the nation could fully access its oil and gas deposits. He emphasized the country’s responsibility to exploit these resources and convert them into wealth.
He also urged energy producers within the Southern African Development Community (SADC) to carefully assess the value of existing infrastructure and practices before adopting new ones, highlighting the evolving perception of gas as a “destination fuel” in the energy transition.
Paul Eardley-Taylor of Standard Bank noted the rapid growth of the gas industry, with significant volumes of liquid natural gas (LNG) under construction and expected to increase further by year-end.
Satish Roopa, Chairperson of Petroleum Agency SA, discussed the impact of Saudi Arabia’s oil production cuts on the Global South, particularly in terms of rising living costs. He emphasized that developing countries often face crises without consultation, as exemplified by the Covid-19 pandemic.
Deputy Minister of Mineral Resources and Energy, Dr. Nobuhle Nkabane, highlighted the adverse effects of rising international fuel prices on South Africa, leading to increased food inflation and transport costs. She advocated for responsible management of indigenous gas resources, suggesting that gas from Namibia’s offshore fields should benefit the sub-Saharan region to mitigate energy price shocks and provide cleaner energy for manufacturing.
The conference recognized the substantial potential of the oil and gas sector in southern Africa to attract billions of dollars in investment and create numerous jobs. However, concerns about environmental impacts and equitable distribution of benefits underscored the need for sustainable and fair management of these newfound resources.
