South Africa to launch new NOC, signaling shift in oil and gas governance

Johannesburg — The upcoming launch of the South African National Petroleum Company reflects a broader trend across Africa, where nations are restructuring their state-owned energy enterprises to attract investment, improve efficiency and enhance energy security.

The upcoming launch of the South African National Petroleum Company (SANPC) on April 1, 2025 marks a significant step in South Africa’s ongoing efforts to restructure its energy sector and improve efficiency within state-owned enterprises. This move, which consolidates PetroSA, iGas and the Strategic Fuel Fund (SFF), aligns with broader regional trends in energy governance, where NOCs are increasingly being positioned as catalysts for investment, security of supply and economic development.

The South African government first announced plans for SANPC in 2020 as part of its strategy to rationalize state-owned enterprises and create a more competitive and investment-friendly energy sector. The merger process, overseen by the Central Energy Fund (CEF) Group under the Department of Mineral and Petroleum Resources, has progressed steadily, with agreements in place to ensure a smooth transition for employees. However, questions remain over asset management, particularly regarding how viable and non-viable assets will be handled post-merger.

In Angola, Sonangol has embarked on a restructuring process to enhance its operational efficiency and financial sustainability, including divesting non-core assets and increasing transparency to attract private sector investment. Similarly, Ghana’s GNPC has pursued strategic partnerships with IOCs to maximize offshore exploration and production while ensuring local participation in energy projects. These efforts reflect a broader trend across the continent, where governments are leveraging regulatory reforms and governance improvements to make their NOCs more competitive in the global energy market.

Nigeria has also taken significant steps with the transformation of the Nigerian National Petroleum Company (NNPC), a commercially driven entity under its Petroleum Industry Act. The shift aims to position NNPC as a profit-oriented enterprise, reducing government dependence on oil revenues while fostering a more attractive investment climate. The success of these reforms will serve as a key reference for SANPC and other emerging NOCs in Africa, underscoring the importance of strong governance, fiscal discipline and strategic partnerships in the sector.