South Africa’s oil and gas regulator for the future

Online since 31.08.2016 • Filed under Industry news • From Issue 4 - September 2016 - February 2017 page(s) 60
South Africa’s oil and gas regulator for the future

Petroleum Agency SA is South Africa’s state-owned company responsible for regulating the oil and gas exploration and production industry.

There is ongoing news coverage of South Africa’s shale gas potential and the economic benefits it might bring, as well as concerns regarding the impact of shale gas exploration, particularly hydraulic fracturing, on water resources and the environment. While these issues have been in the spotlight, it is not that commonly known that South Africa has been a producer of both oil and gas for decades, and that local and international exploration companies are actively exploring for oil and gas in our country. Gas production began in 1992 from gas fields south of Mossel Bay and continues to this day, while modest oil production began in 1997. The gas is piped onshore to a gas to liquids (GTL) plant where it is used to manufacture synthetic diesel and other petrochemical products. Oil is sold on the open market.

Petroleum Agency SA is South Africa’s state-owned company responsible for regulating the oil and gas exploration and production industry. The Agency reports to the Department of Mineral Resources with responsibilities prescribed through the Mineral and Petroleum Resources Development Act. The Agency, based in Cape Town, employs over 70 people, and is responsible for evaluating our oil and gas resources, attracting explorers in the oil and gas sector, monitoring their exploration and production activities, and archiving data produced from these activities. The Agency is known to some as South Africa’s oil and gas exploration and production regulator, licensing agent or concessionaire. While these terms describe some of the responsibilities of the Agency, its role is more than this.

The Mineral and Petroleum Resources Development Act formalises the role and responsibilities of the Agency. The first formalised role is the promotion of exploration for and development of South Africa’s oil and gas resources. The Agency is thus expected to act as the national archive for oil and gas exploration and production data, to appraise potential for oil and gas within South Africa, to promote exploration and development of oil and gas resources, and to raise awareness of petroleum resources at national level. It also acts as an advisor to government. In other words, the Agency is instructed to develop, facilitate and regulate the growth of the upstream industry in South Africa. Its vision of a viable, sustainable and responsible upstream industry in South Africa; and mission – to promote, facilitate and regulate exploration and sustainable development of oil and gas in South

Africa – are directly concerned with this mandate and reflect the Agency’s commitment to its task, as well as to serving the interests of South Africa’s people.

Petroleum Agency SA

T +27 21 938 3500

F +27 21 938 3520

E plu@petroleumagencysa.com

W www.petroleumagencysa.com

Issue 4 - September 2016 - February 2017

Issue 4 - September 2016 - February 2017

This article was featured on page 60 of SABI Magazine Issue 4 - September 2016 - February 2017 .

Share this

10th Annual Business Process Management take of 21 Sept 18
Power Week Africa Conference 2018 take off 15 Sept 18

Subscribe to our Digital Magazine (free)