The South African National Petroleum Company (SANPC) – the country’s newly-established state-owned oil corporation – officially launched at a ceremony on May 23, 2025. 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.

“We made the decision to take three state-owned entities, merge them, and create an energy champion for the country. 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,” stated Gwede Mantashe, Minister of Mineral and Petroleum Resources, South Africa.

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. With the SANPC, the country is providing a competitive and strong local partner for international operators. The company will also address challenges associated with the previous state-owned corporations, specifically those related to profitability and asset management.

“SANPC is going to be an integrated oil and gas company. The first thing we will focus on is economic transformation. Security of supply is our key mandate. The world has changed and it is very important that SANPC occupies the right space to secure energy for this country. The second issue is shareholder returns. We need to make sure that we return money back to our government, give returns to the public and make sure we are sustainable as a company. We want a high-performance company. 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 it in a responsible way,” stated Mojalefa Godfrey Moagi, CEO, SANPC

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.

According to Ayanda Noah, Chairperson for Board of Directors, CEF,“SANPC is very important for the economy and is going to play a very big role in the country. It is important that we support government and its priorities. This is where the real work begins. We need to make sure that this company delivers. We need to look at the R95 billion in opportunities that we identified and make a difference. We need to make sure we improve our refining capacity.”

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. You are going to be driving this future. This company starts a new chapter. This company is going to be, not only a South African company, but [a company that] unlocks a gateway into Africa. SANPC should go out there and champion this country, brand South Africa and engage international investors. When they come here, be their partner. SANPC is ready for business. SANPC is going to champion South Africa,” stated NJ Ayuk, Executive Chairman, African Energy Chamber.