Oil and gas sector
Issues facing the oil and gas sector
South Africa has no significant oil reserves and relies on coal for most of its oil production. The country has a highly developed synthetic fuels industry, as well as small deposits of oil and natural gas.
South Africa has a well-developed oil sector and is one of the major refining and marketing nations in Africa. Products are sold in local markets and exported, mainly to East Africa.
Multinational companies in South Africa continue to encourage transactions within the market to give effect to the provisions of the applicable petroleum legislation. Further, the intention to build a refinery at Coega and the plans to develop the offshore field north of Saldanha Bay indicate the growth expected by the industry.
The main challenge the industry faces is the transport of raw material and final product, having to rely on road transport due to limited pipeline capacity.
How we can help you
Despite being heavily regulated, the South African and African oil and gas markets are dynamic and present many investment and trade opportunities, from downstream operations to upstream gas exploration operations.
Our team of experts has in-depth knowledge of the legislative framework applicable to this industry as well as the constraints it imposes. We can assist you with:
- oil and gas infrastructure development, improvement and expansion
- preparation of all documents and agreements required to operate in the oil and gas sector and within the legislative framework
- assistance with the procurement of mandatory licenses within the industry
- advising on environmental law compliance and reviewing of business processes relative thereto
- real estate and property advice
- bilateral trade agreements in the oil and gas market
- competition law issues
- dispute resolution
- negotiation with government energy sector heads and policy makers
- facilitating compliance with local legislative obligations relative to expansion operations within the oil and gas sector.
