President Cyril Ramaphosa has assented to the Upstream Petroleum Resources Development Bill, which seeks to accelerate petroleum exploration and development with participation by black South Africans.
The Presidency said in a statement the bill seeks to enable active state and black persons’ participation in the development of the nation’s petroleum resources.
“The legislation acknowledges that South Africa’s petroleum resources belong to the nation and that the state is the custodian of these non-renewable natural resources which must contribute to South Africa’s social and economic development,” presidential spokesperson Vincent Magwenya said.
“As part of advancing industrialisation and manufacturing diversity, the law provides for local content as a development strategy to enable skills development, local recruitment and national participation through supply of goods and services,” he said.
Magwenya said the bill separates petroleum provisions from minerals provisions as currently provided for in the Mineral and Petroleum Resources Development Act.
“This separation is necessary from a policy and administrative perspective to ensure matters in the petroleum and minerals industries are addressed on the basis of their distinctive features, to bring about stability and security to investors, especially in the upstream petroleum sector.
“The law sets out the functions of the South African Agency for Promotion of Petroleum Exploration and Exploitation, which include receiving and
evaluating applications for reconnaissance permits, petroleum rights and retention permits, and making recommendations to the Minister of Mineral
Resources and Energy.”
Chairperson of the Portfolio Committee on Mineral and Petroleum Resources, Mikateko Mahlaule, has welcomed the signing of the bill.
Mahlaule said the new act “will enhance state participation in the upstream petroleum industry and economic transformation of the industry. It will also promote petroleum resource development in a sustainable and equitable manner for the benefit of all South Africans.”
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