Mantashe believes exploiting SA's oil & gas deposits will significantly increase GDP

CAPE TOWN - Mineral and Petroleum Resources Minister Gwede Mantashe believes if the country's gas and oil deposits can be exploited, it will significantly increase the gross domestic product.

Speaking at the African Energy Week conference on Thursday, he reiterated the strategic importance of reviving the Mossel Bay refinery. 

Mantashe said that the state’s new national petroleum company, SANPC, would become the new petroleum champion for the country.

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The minister said that splitting the country’s energy and electricity portfolio under the seventh administration also gave credence to the significant role petroleum would play in the country’s future energy mix.

Last week, the president recently assented to the Upstream Petroleum Resources Development Bill, which aims to accelerate exploration and development.

Getting the Mossel Bay refinery going again will be key to this.

"Refining capacity in a country is actually reducing the risk of imported finish products. You cushion that by having your own refining capacity. The SA National Petroleum Company is going to focus on that." 

While the bill to establish the national petroleum company is still before Parliament, the body is currently being set up under the Central Energy Fund. 

Mantashe said this was not just another bureaucratic, state-owned company and followed international best practice.  

The Strategic Fuel Fund, iGAS and PetroSA will all be merged under the SANPC.

"It's not going to be a government department, it's going to be an operational company which is in the sector itself and working with everybody else." 

SANPC CEO Godfrey Moagi said the SANPC would put an end to duplication and state companies competing with each other in the market.