Business Report

How foreign-funded NGOs are hindering South Africa's oil and gas exploration projects

Mthobisi Nozulela|Published

The Minister of Mineral and Petroleum Resources, Gwede Mantashe, has revealed that five oil and gas exploration projects have been stopped or delayed over the past two years due to legal action by NGOs

Image: BRENDAN MAGAAR/Independent Newspapers

The Minister of Mineral and Petroleum Resources, Gwede Mantashe, has revealed that five oil and gas exploration projects have been stopped or delayed  due to legal action by NGOs.

Mantashe made the revelation in a written parliamentary reply to a question from African Transformation Movement (ATM) member of parliament, Vuyo Zungula.

"Since 2021, a total of five (5) upstream oil and gas projects has been halted or postponed due to legal challenges by NGOs. Of these, three (3) were halted or postponed in 2024 and two (2) in 2021," the minister said.

The minister added that the "total value of the five halted/postponed projects is estimated to be between a minimum investment of US $476 million ( R8.36 billion) and a potential maximum investment of US $1.6 billion (R28 billion)".

"The actual value will depend on the executed work programs and project scopes. In summary, of the five (5) projects impacted, two (2) are located along the East Coast and three (3) projects along the West Coast region".

The minister also revealed that his department was taking steps to address concerns raised by NGOs and ensure that oil and gas exploration is carried out in an environmentally responsible way.

"The department ensures that NGO concerns are considered during the Environmental Impact Assessment (EIA) and consultation processes. The appointed Environmental Assessment Practitioner is responsible for incorporating these concerns, which are then taken into account by the department during its final decision-making process".

"Petroleum Agency SA conducts a community awareness campaign to provide information and educate communities about oil and gas activities. This aims to improve understanding and address potential concerns proactively".

However, Mantashe has previously expressed frustration over NGO opposition to energy projects, accusing some groups of being backed by foreign interests.

“Many of the NGOs that take us to court have unlimited resources; they're funded by foreign entities. It is deliberate to block development. It's not an accident, it's a deliberate problem that is directed at blocking development in a poor country like South Africa, and we’re determined to fight off that obstacle to development.”

In a post on X (formerly Twitter), Zungula also slammed non NGO's, labelling them as a barrier to South Africa's extraction of its resources for the benefit of its people.

"Foreign-funded NGOs are a barrier to South Africa's extraction of its resources for the benefit of its people," he said.

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mthobisi.nozulela@iol.co.za

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