Mahlobo: Africa upbeat about oil and gas future

Energy Minister David Mahlobo File photo: INLSA

Energy Minister David Mahlobo File photo: INLSA

Published Oct 23, 2017

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There is growing optimism about the potential of Africa’s oil and gas development, given the sustained increase in crude oil prices.

Energy Minister David Mahlobo said this at yesterday’s opening session of the 24th Africa Oil Week conference at the Cape Town International Convention Centre.

“This bodes well for many of the continent’s economies that had suffered when there was a downturn in commodity prices,” said Mahlobo.

He added: “We are proud to be associated with the Africa Oil Week, a forum where we discuss the common future of Africa, particularly for insight on Africa’s legislative environment, investor outlook, acreage opportunities, exploration and production developments, technology innovations, industry strategy and forecasts for the coming years.

“For South Africa, a net oil and gas importing country, these interactions are of critical importance as we seek to further enhance energy security of demand and supply.

"We are however of the firm view that given the interest in our offshore acreage, we will soon be producers ourselves."

Highlighting the call of the AU Agenda 2063 for African governments and states to take certain steps to ensure the continent’s growth and sustainable development, Mahlobo said.

“In this regard, energy is a critical resource and an input element that must be used to propel our economies towards a growth trajectory in the next 50 years.”

“The UN has noted that sustainable energy provides an opportunity to transforms lives, economies and the planet.”

He stressed that net oil importing countries like South Africa have enjoyed the benefit of lower oil prices, but were at the same time impacted by the downturn in other commodity prices such as iron ore and platinum group metals.

“Many countries of the world are dependent on energy imports and nations with surpluses often exercise disproportionate influence on the world,” he said.

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