South Africa has officially launched the South African National Petroleum Company (SANPC) in a significant step toward enhancing the nation’s energy security and reducing reliance on imported petroleum products.
The new state-owned oil enterprise is formed through the merger of PetroSA, iGas, and the Strategic Fuel Fund.
Minister of Mineral and Petroleum Resources, Gwede Mantashe, stressed the strategic importance of SANPC during the launch in Johannesburg yesterday, May 23, 2025, stating:
“We made the decision to take three state-owned entities, merge them, and create an energy champion for the country. The issue for us is to focus on inclusive growth. This country can have between 5% and 8% annual growth if we use our oil and gas reserves. We have oil, we have gas, so we must exploit it.”
The Minister told delegates that the new entity is expected to operate in an increasingly volatile, unpredictable, and polarised world, also in a world where there is a shift in demand towards cleaner sources of energy production.
SANPC aims to unlock over R95 billion (~5.3 billion) in investment opportunities by focusing on increasing oil and gas exploration and production, improving refining capacity, and developing a competitive domestic petroleum market.
The company will operate as a subsidiary of the Central Energy Fund (CEF) and has already begun operations following the finalization of agreements with both organized and non-unionized labour.
CEO Mojalefa Godfrey Moagi outlined the company’s priorities:
“SANPC is going to be an integrated oil and gas company. The first thing we will focus on is economic transformation. Security of supply is our key mandate. The second issue is shareholder returns. We need to make sure that we return money back to our government, give returns to the public and make sure we are sustainable as a company”.
The launch of SANPC is a long journey seen as a strategic intervention to drive industrialization, job creation, and inclusive growth.
The enterprise will prioritize fuel security by managing the country’s strategic oil reserves, reducing imports and improving the national balance of payments.
It also aims to rebuild refining capacity, and ensure energy sovereignty while contributing to regional energy security.
Speaking at the launch, NJ Ayuk, Executive Chairman of the African Energy Chamber says the launch “signals the rise of an integrated oil company in South Africa, paving the way for greater accountability, efficiency and profitability in the country’s petroleum sector”.
“Energy security cannot be driven by external actors; it needs to be driven by home-grown solutions and that is why you need an SANPC. You are going to be driving this future. This company starts a new chapter,” he said.
The increasing population and the need for industrial growth in the short-to-medium term in South Africa suggest a foreseeable rise in demand for fossil fuels in the future, Minister Mantashe said.
“The real issue is ensuring energy security in the country” especially in the wake of the evolving global push to shift away from the use of fossil fuels, he said.
Although South Africa is not yet a commercial crude oil producer, it maintains strategic reserves of approximately 7.7 million barrels.
SANPC has announced it will halt further sales of crude oil from these reserves unless prices exceed $100 per barrel, a strategy aimed at preserving national energy buffers and maximizing value
1 Rand = 0.056 US dollars