Oil & Gas

  • Offshore Oil & Gas Exploration
  • Offshore Mining of mineral resources such as diamonds
  • Harvesting of Active Pharmaceutical Ingredients (APIs) from living marine resource; both fauna and flora
  • Hydrography and geology research to understand the underwater topography
  • Other scientific research such as meteorology and studying effects of climate change
  • Renewable energy such as wave, solar and algae (biomass) energy harvesting.

Most well-known of these activities is oil and gas exploration while many of the above listed activities hold huge potential for growth and contribution to the South African economy, given its large Economic Exclusion Zone of 3,43 million square kilometres. The South African Offshore Oil and Gas Industry includes the exploration and production of crude petroleum, the mining and extraction of oil and natural gas from offshore installations and all other activities in the preparation of oil and gas up to the point of shipment from the producing property in the South African Maritime Area.

South Africa possesses relatively small deposits of conventional oil and natural gas and the industry employs an estimated 7 500 people with an estimated annual turnover of 196 billion rands with a refining segment of the industry that contributes almost 99% to the total industry's turnover. Moreover, the industry accounts for more than 90 000 indirect jobs in the distribution and marketing segment of the industry value chain. The refining segment of the industry is very important to the South African economy as it contributes: 5 billion rands in annual payroll; 40 billion rands in annual excise and sales taxes; and over 190 billion rands in income taxes. However, South Africa remains a largely unexplored part of the African continent with mainly only gas findings to date. 

It has however been noted that the South African offshore oil and gas industry needs to overcome a series of strategic challenges if it is to optimally exploit the vast upstream and downstream opportunities in South Africa as well as those emerging across the broader African continent. The source of these inhibitive factors is multifold, requiring a well-orchestrated and collaborative response from the industry, government and all the other relevant stakeholders. The South Africa Maritime Industry Conference (SAMIC) will bring together a representative grouping of key decision makers along the offshore oil and gas value chain to identify and put to action the most optimal solutions for this important industry of the maritime sector.More information coming soon