South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, has opened day two of AOW Virtual, an online summit from the team behind Africa Oil Week.
Mantashe’s opening address reflected the importance of South Africa’s role in the Africa Oil Week community, as the conference’s host nation for its 26 editions.
AOW said the goal of the conference was to reignite the African upstream following a tumultuous year that has featured unprecedented supply and demand shocks in the sector.
In his address, Mantashe did not shrink from addressing the devastating effects of COVID-19 on South Africa, having only recovered from the disease himself a few months previously.
Though South Africa allowed the energy sector to operate at full capacity following the nationwide lockdown, a decrease in demand for petroleum products over an extended period meant some refineries were still forced to close.
Despite this, Mantashe stressed that the tide now looked to be turning, following further relaxation of lockdown restrictions in South Africa as it heads into summer.
He cited the recent “rapid increase in demand” for petroleum products in the country, which is now leading to the converse problem of shortages in some areas.
The Petroleum Resources Development Bill will play a crucial part in this, and in the minister’s plan to reduce the country’s dependence on hydrocarbon imports.
On the recently published bill, Mantashe stated, “We have had consultations with a broad range of stakeholders. Our intention is to have the bill finalised; to attract investment and ensure synergy between oil and gas activities and our nation’s environment and water resources.”
