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2026-07-13 13:42:30
[South Africa plans to increase its strategic oil reserves for the first time since the 1970s] (1) On July 9, the South African Department of Mineral Resources and Energy (DMRE) released a draft policy and solicited public opinions on plans to increase the country's strategic oil reserves. This would be the first increase in reserves by South Africa since the 1970s. At that time, the United Nations imposed sanctions on South Africa for its apartheid policy, prompting South Africa to build the Saldanha Gulf oil storage facility on its Atlantic coast, which can store 45 million barrels of crude oil. (2) The draft states that South Africa estimates it needs to increase its oil reserves by 10 million barrels to make up for the current inventory shortfall. (3) The document states that the National Treasury and the National Oil Company will develop mechanisms and tools for financing and guaranteeing strategic oil reserves. (4) The DMRE proposes that the strategic reserves should cover 60 days of demand, with about two-thirds being crude oil and the remainder being petroleum products. According to estimates by the U.S. Energy Information Administration, South Africa's daily oil demand is about 600,000 barrels, which would translate to a reserve size of about 36 million barrels. (5) Under the plan, licensed wholesalers and importers will be required to maintain an inventory equivalent to 21 days of demand.
