Minister calls out environmental lobbyists

O&G exploration is an imperative for the country – says Minister

SOUTH AFRICA: Echoing his sentiments to boost the country’s exploration and production capacity expressed at last year’s event, Minister Gwede Mantashe returned to this year’s edition of the Southern Africa Oil and Gas Conference in Cape Town where he condemned “the persistent opposition from environmental lobby groups who continue to block every oil and gas development in our country”.

Describing these groups as one of the biggest challenges currently facing South Africa’s petroleum sector, the Minister of Mineral and Petroleum Resources blamed their legal actions for constraining offshore exploration.

“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,” he told delegates yesterday.

Noting the current geopolitical tensions that are impacting on oil and gas prices, Mantashe was clear in his indictment, noting that neither the country or the continent could afford not to exploit their natural resources.

“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.

“It is now well established that South Africa is endowed with significant offshore petroleum potential, including major gas discoveries in the Outeniqua Basin,” he said adding that the Orange Basin has already emerged as a world-class oil frontier for Namibia. “Geological evidence suggests may extend southwards into South African waters,” he said.

Advocating for “responsible oil and gas development,” Mantashe noted that South Africa’s constitution provides for the sustainable development and the use of natural resources while promoting justifiable economic and social development.

Mantashe said that his department was working with the Minister of Forestry, Fisheries and the Environment, and noted the recent announcement by Willie Aucamp to address the appeals lodged against several environmental authorisations granted for offshore oil and gas exploration projects.

“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.

“The importance of responsible oil and gas development in meeting our socioeconomic needs cannot be overstated. Therefore, increasing our petroleum refining capacity within our borders, beyond the NATREF, Astron Energy refinery, and Sasol Secunda coal-to-liquids plant, would significantly enhance our industrialisation efforts and contribute to GDP growth.”

Legislative backdrop

Mantashe confirmed that the enactment of the Upstream Petroleum Resources Development Act (UPRDA) provides a critical framework for the petroleum sector to make a meaningful contribution to the economy.

“The Act has not only separated petroleum from mining legislation, but also establishes an enabling regulatory framework aimed at accelerating exploration and production of the nation’s petroleum resources,” he explained.

Admitting to the failure to operationalise the Act in September last year, the Minister confirmed that consideration has now been given to extensive submissions and that implementation of the Act is imminent.

“I can report to you that these submissions have now been considered, and the relevant officials are now dotting the i’s and crossing the t’s ahead of publishing the regulations for implementation by the end of this month.”

Further legislative reforms are being considered including the modernisation of the Petroleum Products Act. Following public consultations on the draft Petroleum Products Bill (PPB), the bill is currently undergoing certification processes ahead of submission to Cabinet for approval, and thereafter to Parliament.

“These reforms are aimed at ensuring equitable access to, and sustainable development of, the nation’s petroleum resources while, in the long term, reducing the country’s reliance on imports of finished products to meet domestic demand,” he said telling delegates that South Africa should not be standing on the sidelines within the evolving global energy landscape.

PHOTO: Minister Gwede Mantashe says environmental lobbyists are the biggest challenge facing the country’s ambitions to promote offshore oil and gas exploration.  

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