SOUTH AFRICA: PETEROLEUM Upstream Regulatory Authority (PURA) is turning to Artificial Intelligence (AI) to strengthen petroleum regulation and accelerate the exploitation of the country’s oil and gas resources as the global energy transition gathers pace.
Speaking in an interview on the sidelines of Africa Energy Week 2026 in South Africa, Petroleum Upstream Regulatory Authority (PURA) Director General, Engineer Charles Sangweni said the regulator was building its technical capacity to use AI in analysing petroleum data and scrutinising cost-recovery claims submitted by companies operating under production-sharing agreements (PSAs).
He acknowledged that the authority was still at an early stage of adopting the technology, with oil and gas companies advancing faster in its application.
“The companies we are working with are far ahead in using AI, especially in data interpretation,” he said.
Eng Sangweni warned that limited technical capacity could leave regulators struggling to keep pace with companies’ data-analysis capabilities, potentially undermining their ability to independently assess claimed costs.
To bridge the gap, PURA staff have been receiving training through cooperation with Norway’s petroleum sector, aimed at strengthening local expertise and equipping the regulator to keep pace with technological developments.
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“With the speed at which we are moving, I am confident that PURA will become digitised and well-equipped with AI knowledge as soon as possible,” he said.
Beyond digital transformation, PURA is also stepping up efforts to attract investment into the country’s petroleum sector through competitive bidding for exploration blocks.
Eng Sangweni said the authority had demarcated 26 petroleum blocks, comprising 23 offshore and three onshore, with bidding rounds planned at intervals of approximately two years.
He said PURA intended to initially offer six or seven blocks to gauge investor interest before opening additional areas for exploration.
“We want to make sure that during this window of transition towards the use of renewables and net zero, we exploit as much as possible of our resources,” he said.
Eng Sangweni expressed confidence that Tanzania could attract investors, citing political stability and its strategic geographical position, despite growing competition from emerging petroleum producers such as Mozambique.
Commenting on interest from Chevron and other major oil companies, he said all prospective investors would be required to compete in accordance with the law.
However, companies that had already accessed available petroleum data could be better prepared when the bidding process opens.
PURA is also seeking to increase domestic financial institutions’ participation in financing major oil and gas developments, particularly liquefied natural gas (LNG) projects.
Eng Sangweni said local banks and insurance companies had the capacity to support such investments, adding that discussions were underway to encourage domestic institutions to participate as lenders.
“We need our local banks to be part of it as lenders. It is not only foreign banks that can finance these projects,” he said.