SA must benefit from local gas find – committee

The National Assembly's Committee on Mineral Resources hopes new legislation will be developed to ensure that the gas industry benefits all South Africans, after Total announced its biggest offshore oil discovery in the country last week. The committee said President Cyril Ramaphosa’s mooted reconfiguration of the state would lead to the extinction of the glaring lines between the roles of the Department of Energy and the Department of Mineral Resources. According to a report in Business Report, Total said the potential output from the reservoir could be around 1bn barrels of total resources of gas and condensate. The discovery, which has been described as a catalytic find, is expected to provide a R1 trn boost for the economy over the next 20 years. Committee chairperson Sahlulele Luzipho said it should lead to the beneficiation of local – instead of overseas – interests. ‘We have seen in previous discoveries the majority ownership or benefits going to offshore companies,’ he said. ‘It would be ideal to deal with regulations to ensure that all South Africans benefit.’

Full report in Business Report