The Portfolio Committee on Mineral and Petroleum Resources has welcomed a detailed briefing by the Department of Mineral and Petroleum Resources (DMPR) on the South African National Petroleum Company Bill [B2–2026], marking an important step in Parliament’s consideration of the proposed legislation.
The Bill seeks to establish the South African National Petroleum Company (SANPC) as a state-owned entity that will play a central role in strengthening the country’s energy security and expanding the state’s strategic participation in the petroleum sector.
Among its key objectives, the Bill provides for SANPC to participate actively in petroleum exploration and production, enter into concession agreements with other governments and strategic partners, and acquire interests across the petroleum value chain. This includes refining, storage, marketing, aggregation, and trading of petroleum and related products.
The proposed legislation also outlines a governance framework for the new entity, detailing the composition and functions of its Board, management structures, financial arrangements, and the appointment of executive leadership, including the Chief Executive Officer and Chief Financial Officer.
In addition, the Bill makes provision for transitional arrangements that will enable the transfer of assets and personnel from iGas, the Strategic Fuel Fund (SFF), and PetroSA into SANPC, effectively consolidating state-owned capabilities within the petroleum sector.
Committee Chairperson, Mr Mikateko Mahlaule, said the briefing had laid a strong foundation for the legislative process ahead. He noted that the committee’s work will now move towards public consultations and detailed clause-by-clause deliberations.
He further highlighted that the Bill presents an opportunity to build a more coordinated and commercially viable state presence in the sector, particularly in relation to exploration, production, and infrastructure development.
The committee is expected to outline its programme for processing the Bill in due course, which will include inviting public submissions as part of Parliament’s commitment to participatory democracy.
The committee also received briefings yesterday from the Auditor General on the DMPR’s and its entities’ strategic plan and budgets for the 2026/27 financial year.
Justice Molafo
22 April 2026
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