International oil companies operating in South Africa have called for regulatory reforms, faster licensing decisions and infrastructure investment to unlock the country’s upstream potential and reduce reliance on imported fuels.

Speaking during a panel sponsored by the South African National Petroleum Company (SANPC) at African Energy Week 2026, industry leaders highlighted regulatory appeals and policy uncertainty as key barriers to investment in exploration, gas development and downstream infrastructure.

Magali Pailhé, Managing Director of TotalEnergies EP South Africa, said delays caused by regulatory appeals were holding back offshore exploration, particularly in the Orange Basin.

“Today, we have blocks offshore in the Orange Basin that TotalEnergies has proven in Namibia, but are blocked in various stages of appeal. We need to unblock these so the potential can be realized,” she said. “In Namibia, 25 wells have been drilled since 2022, while in South Africa, only three since 2014. The industry is here, but the appeals need to be addressed to allow investment to flow.”

South Africa’s Deputy Minister of Mineral and Petroleum Resources, Phumzile Mgcina, acknowledged the need to translate resource potential into economic benefits through investment, infrastructure and stronger policy frameworks.

“We have the resources but have not yet converted enough of them into energy, economic opportunities and improved livelihoods. We need investment, infrastructure and policy incentives,” she stated.

Godfrey Moagi, SANPC CEO, outlined the company’s strategy across exploration, gas development, refining and distribution.

He cited estimates of 27 billion barrels of crude resources and 260-300 trillion cubic feet of gas, highlighting the country’s potential to expand domestic production.

Downstream investment is also a priority, with imports now meeting approximately 61% of South Africa’s fuel demand, up from 22% in 2019, according to the Central Energy Fund.

Funlola Abe Folukoya, Head of Trading & Origination at bp Southern Africa, called for consistent policies and infrastructure linking coastal import terminals to inland markets.

“Policy is a non-negotiable and is absolutely required to unlock the investment needed in the downstream and fuels market,” she said. bp recently secured a 25-year agreement covering operations at Durban’s Island View Terminal.

Bader Al Lamki, ADNOC Distribution CEO, also stressed the need for transparent, investment-friendly policies. The company has agreed to acquire Shell Downstream South Africa in a transaction valued at approximately $1 billion, subject to regulatory approvals.

Meanwhile, Anish Patel, ExxonMobil’s South Africa Business Development Executive, warned that declining pipeline gas supplies from Mozambique and rising gas-to-power demand could widen the country’s supply deficit.

With gas demand potentially more than tripling by 2050, he identified liquefied natural gas (LNG) imports as a key option.

ExxonMobil has signed a heads of agreement with Zululand Energy Terminal for a proposed LNG import facility at Richards Bay.

Afreximbank’s Andrew Masuwa highlighted the bank’s $14 billion South Africa country programme as a potential source of financing for refining and infrastructure projects, noting opportunities to rebuild domestic processing capacity and reduce fuel import dependence. -OGN/TradeArabia News Service