BUSINESS MAVERICK: Petroleum draft bill lays uncertain foundation for SA oil and gas production

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BUSINESS MAVERICK: Petroleum draft bill lays uncertain foundation for SA oil and gas production By Ed Stoddard

It was too late for the Africa Oil Week conference in Cape Town in November 2019, but never mind. South Africa’s draft Upstream Petroleum Resources Development Bill was published on Christmas Eve for public comment, which must be submitted by 21 February 2020. The envisioned bill will provide the broad regulatory framework for South Africa’s infant upstream hydrocarbon industry. Taxes and royalty regimes still need to be drawn up by the Treasury.

So to draw outside investment — at a time where there is a global shift to renewables and cleaner energy sources — South Africa’s hydrocarbon regulations need to be attractive. That could raise boardroom hackles. Will it include access to confidential information? Such provisions are often aimed at dividend extraction and not a seat at the operations table.

The Brulpadda gas find off the coast of South Africa, announced by Total E&P SA in February 2019, is one of the factors behind government hopes that the country will become Africa’s next hydrocarbon province. There are also dreams of unlocking shale gas in the Karoo, over which there are legitimate environmental concerns.

 

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Gwede imagines that investors will come running. He is such a fool.

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