Refers to the initial stage in the oil and gas industry, encompassing the exploration, drilling, and extraction of raw hydrocarbons from underground or underwater reservoirs.
The state will manage its upstream exploration and production rights, and implement a free carry model through the Upstream Petroleum Resources Development Act and other legal and commercial methods to protect national energy interests.
Hold exploration and production rights, and reconnaissance permits, in terms of the Upstream Petroleum Resources Development Act.
Manage and control the State’s participation and interests, including the country’s share of petroleum received in kind as provided for in the Upstream Petroleum Resources Development Act.item
UPSTREAM
Global trends indicate a shift away from oil usage, with primary energy production experiencing a shift in demand towards cleaner sources of energy production such as gas and renewables.
However, with increasing populations and the need for industrial growth in the short-to-medium term, oil demand is expected to continue growing until 2035, whereafter a slow decline will be seen.
Although there have been findings off of the South African coastline, natural reserves are still very nascent with limited production levels. SA NPC will have to ensure that maximum value is extracted from the interest it holds in Blocks off the Southern African coast while positioning itself to capitalize on the shifting demand towards more renewable-based energy sources.