South Africa risks losing investment and economic opportunities in its offshore oil and gas sector if prolonged legal and regulatory uncertainty continues to delay exploration, the chair of parliament’s portfolio committee on mineral and petroleum resources warns. Mikateko Mahlaule said the committee supported the development of the upstream petroleum industry but recognised that the sector faced challenges, including litigation by civil society organisations over environmental concerns, public participation and the alignment of petroleum development with the government’s climate policies.Speaking during an economic cluster briefing on Monday, Mahlaule said South Africa could not afford for potentially significant economic opportunities and job creation initiatives to remain permanently at the conceptual stage because of uncertainty around exploration.The committee had noted the constitutional court judgment concerning Shell and Impact Africa’s offshore exploration activities along the Wild Coast, he said.Mahlaule said the committee respected the court’s authority and recognised the importance of meaningful consultation with affected communities and proper consideration of environmental concerns.“Economic development and environmental protection should not be treated as mutually exclusive objectives,” he said.South Africa needed a regulatory framework that protected the environment and the rights of affected communities while providing investors with sufficient certainty to undertake responsible exploration, he said.The warning comes as parliament processes the South African National Petroleum Company Bill, which seeks to establish a consolidated state-owned petroleum company to manage the state’s participation in the upstream petroleum sector.The Upstream Petroleum Resources Development Act, signed into law by President Cyril Ramaphosa in October 2024, separated petroleum regulation from mining legislation and designated a state-owned company to manage the state’s participation in the upstream petroleum sector.At the time, the precise institutional form of the company had not yet been determined.Mahlaule said the cabinet subsequently approved a proposal by the mineral & petroleum resources department to consolidate three Central Energy Fund subsidiaries — the South African Gas Development Company, PetroSA and the Strategic Fuel Fund — into a single state-owned petroleum company.The proposed South African National Petroleum Company has since been incorporated as a subsidiary of the Central Energy Fund as an interim arrangement pending the passage of the bill.The bill was approved by the cabinet in October 2024 and referred to the portfolio committee in February 2026. The committee received oral presentations from members of the public on August 18 and has now entered the deliberation phase.Mahlaule said submissions had raised concerns about the need not to rush the bill, environmental protection, the impact on workers of the companies being merged, and the financial sustainability and viability of the proposed company.The concerns were particularly relevant given the challenges experienced by PetroSA, he said.The committee aims to finalise the bill before the end of this financial year, provided the concerns raised during public participation and those identified by members are adequately addressed.Mahlaule said South Africa remained heavily dependent on petroleum imports, exposing the country to geopolitical developments and fluctuations in international markets.He said the committee would continue engaging with the department on the implications of the Constitutional Court judgment and the broader challenges facing offshore exploration.It also intends to conduct public hearings on oil and gas development to give communities, industry, civil society, experts and other stakeholders an opportunity to engage on the sector.Mahlaule outlined the committee’s work on the Mine Health and Safety Amendment Bill, which seeks to modernise the regulatory framework, strengthen accountability, align the act with other legislation, update safety standards and definitions, and increase penalties for noncompliance.He said there had been progress in reducing fatalities in the mining industry since the promulgation of the 1996 Mine Health and Safety Act.Total fatalities declined from 650 in 1993 to 254 in 2023 while the industry recorded 216 fatalities in 2025.Gold mining remained the largest contributor to mining fatalities, with deaths in the sector falling from 426 in 1993 to 20 in 2023.However, Mahlaule said mining health and safety could not be limited to fatalities and injuries and needed to address occupational diseases and the broader well-being of mineworkers.The committee was particularly concerned about increases in non-communicable diseases and mental health conditions.Non-communicable disease cases increased from 84,685 in 2022 to 256,818 in 2024, while mental health cases increased by about 291% in 2020-24.Mahlaule said depression remained the largest category of mental health conditions, while increases had also been recorded in bipolar disorder and post-traumatic stress disorder.The committee intends to focus on the prevention, identification and management of these conditions as it processes the bill.It also intends to conduct provincial public hearings on the legislation, subject to the availability of resources, and aims to finalise the bill before the end of the current financial year.Illegal mining was another focus of the committee’s briefing, with Mahlaule warning that the activity was resulting in lost mineral wealth, reduced potential fiscal revenue and royalties, environmental degradation and harm to legitimate mining operations.The risks were highlighted by the deaths of two South African National Defence Force members during an operation against illegal mining in Johannesburg in July after they fell into an abandoned mine shaft.More recently, four suspected illegal miners were killed and eight others injured when a mine collapsed near Rustenburg.Mahlaule said these incidents demonstrated the safety risks associated with illegal mining but also highlighted the need to address the regulatory and economic dimensions of the sector.The committee noted the cabinet’s approval of the General Laws Amendment Bill, which is intended to strengthen the framework for combating illicit mining and related activities.It will continue engaging with other parliamentary committees to strengthen oversight of law enforcement agencies and the implementation of measures to address illegal mining.