Mineral and Petroleum Resources Minister Gwede Mantashe says government is preparing to accelerate South Africa’s oil and gas development, warning that rising global fuel prices are “increasingly unavoidable” and that reliance on imports leaves the country exposed.

Speaking at the Southern Africa Oil and Gas Conference on Monday, Mantashe confirmed that long-awaited regulations to operationalise the Upstream Petroleum Resources Development Act will be published by the end of March, paving the way for increased exploration and production.

He also indicated that a moratorium on shale gas development could soon be lifted, once environmental regulations are finalised “in the next few months”.

Fuel pressures drive urgency

Mantashe linked the policy push to global instability, particularly the ongoing Middle East conflict, which has disrupted supply chains and driven fuel price volatility.

“Substantial fuel price increases are increasingly unavoidable,” he said, noting that countries dependent on imported refined petroleum products remain highly vulnerable.

The department is currently engaging industry to secure alternative fuel supply sources and avoid tapping into strategic reserves, but Mantashe stressed that domestic production is the only sustainable long-term solution.

Mantashe also said expanding South Africa’s refining capacity beyond existing facilities like NATREF and the Sasol Secunda plant would be key to boosting industrialisation, reducing fuel imports, and strengthening energy security.

Environmental opposition under fire

In a pointed critique, Mantashe blamed environmental lobby groups for delaying oil and gas projects, saying persistent legal challenges have blocked development despite South Africa’s significant offshore potential.

He highlighted the Outeniqua Basin and the Orange Basin as key areas of opportunity, noting that recent discoveries in neighbouring Namibia suggest similar reserves could extend into South African waters.

“South Africa cannot afford to remain poor while endowed with abundant natural resources. We must harness these resources responsibly to drive inclusive economic growth, create employment opportunities, and eradicate poverty,” he said.

Legislative overhaul and state oil company

Government is also pushing broader reforms to unlock the sector. Mantashe confirmed that the Petroleum Products Bill is being finalised for submission to Cabinet and Parliament, while the newly established South African National Petroleum Company will spearhead state participation in the industry.

The reforms aim to boost refining capacity, reduce reliance on imports, and drive industrialisation and job creation.

Shale gas breakthrough on the horizon

A key development is progress toward lifting the shale gas moratorium, which has been in place for years pending environmental safeguards.

Mantashe said engagements with environmental and water authorities have cleared the path for final regulations to be gazetted soon, after which the moratorium could be removed immediately.

At the same time, government is moving to resolve appeals against offshore exploration licences, in a bid to reduce investor uncertainty caused by prolonged legal disputes.

“Act decisively”

Mantashe framed the push as critical for economic growth and energy security, warning that South Africa risks falling behind as other African countries develop their resources.

“We must not stand on the sidelines while the global energy landscape evolves,” he said.