SAfrica sees more significant oil, gas potential

* Sees significant oil, gas potential

* New licenses to be awarded via direct negotiation

By Agnieszka Flak

CAPE TOWN, Nov 6 (Reuters) - South Africa has the potential to become a more significant oil and gas producer, with a new petroleum act paving the way for more exploration, an official at the Petroleum Agency of South Africa said on Friday.

David van der Spuy, the agency's manager for resource evaluation, said companies active in the country have resumed exploration put on hold during the changes in the law and other companies have come in to secure blocks both on and offshore.

The new law ensures that historically disadvantaged South Africans can participate in the sector.

The agency, which regulates the country's exploration on behalf of the government, on Thursday awarded the exploration licenses for two of South Africa's offshore areas to oil major Shell and Singapore's Silver Wave Energy. [ID:nJAT00653]

"There are still some large areas that are unexplored in South Africa, including far offshore areas ... in terms of geology, there is a possibility of larger amounts of oil," van der Spuy told Reuters on the sidelines of an oil conference.