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The Minister of Mineral Resources Mr Gwede Mantashe will amend the moratorium currently in place for the oil and gas sector, in order to allow for the processing of applications currently in the system.

The moratorium, which was originally put in place in June 2018, imposes a restriction on the granting of applications for technical co-operation permits, exploration rights and production rights until a notice of invitation for applications is published.

Speaking to investors during the oil and gas breakfast in Cape Town this morning, Minister Mantashe stressed the importance of providing an enabling environment for this sector of the economy to grow.

“We welcome the commitment by petroleum giant Total and its partners to resume its drilling operations, which affirms confidence in South Africa as an investment destination for exploration of oil and gas,” Minister Mantashe said.

The drill rig for this project is expected on South African shores by 5th December 2018.

“Furthermore, development of a separate legislation for oil and gas is currently underway, and soon there will be consultation with the industry.”

Earlier this year the Minister announced the need for separation of oil and gas.

“One of the most pressing challenges is that of growing the economy. This sector will play a crucial role towards attaining this objective. We will therefore continue to work in earnest to ensure that the investment environment is amenable, and assists us to create a growing, competitive and transformed industry,” the Minister concluded.

Issued by the DMR