South Africa launches new national petroleum company
South Africa has officially established its new state-owned oil corporation—South African National Petroleum Company (SANPC). The launch—which follows the merger of PetroSA, iGas and the Strategic Fuel Fund—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.
The establishment of the SANPC aligns with broader goals by the South African government to create a more competitive and investment-friendly petroleum sector. With a mandate to promote energy independence and diversification, the SANPC is expected to play an instrumental role in unlocking the country’s oil and gas resources while driving long-term and impactful economic growth.
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“We made the decision to take three state-owned entities, merge them, and create an energy champion for the country,” said Gwede Mantashe, Minister of Mineral and Petroleum Resources, South Africa. “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 establishment of the SANPC comes as South Africa seeks to leverage its oil and gas resources to stabilize the fuel market and bolster domestic supplies. While the country has proven deposits of natural gas—both offshore and in onshore shale basins—as well as significant oil potential, lack of investment and environmental opposition has impacted development.
Mojalefa Godfrey Moagi, SANPC’s CEO, emphasized the company’s strategy as an integrated oil and gas entity, with key areas to focus on moving forward. “The first thing we will focus on is economic transformation. Security of supply is our key mandate,” Moagi said. “The second issue is shareholder returns. Another mandate is energy transition, but we need to make sure we cover our bases first. When it is time for us to look at the transition, we need to do it in a responsible way.”
One of the core strategies of the SANPC is to ring-fence all non-functioning assets, identify assets that can be moved to the new company and ensure these assets can be traded and utilized effectively. The SANPC is already operating as a fully-fledged subsidiary of the Central Energy Fund (CEF), with the signing of an agreement with both organized labor and non-unionized employees signed in April 2025.
Looking ahead, the SANPC will prioritize fuel security, with the aim of reducing imports and improving the national balance of payments. By accelerating the development of strategic projects, fostering regional integration and working closely with international operators, the company strives to unlock greater value from the 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,” added NJ Ayuk, Executive Chairman, African Energy Chamber. “SANPC is ready for business and will act as a champion for South Africa.”
