MEDIA STATEMENT: MINERAL RESOURCES AND ENERGY COMMITTEE CONCLUDES PUBLIC HEARINGS ON UPRD BILL IN ALL NINE PROVINCES

The Portfolio Committee on Mineral Resources and Energy has concluded public hearings on the Upstream Petroleum Resources Development (UPRD) Bill in all nine provinces, thereby covering 25 districts and four metropolitan municipalities.

The committee achieved this within a space of three month, beginning from Western Cape in February and ending in Gauteng this past weekend. Most members of the public who participated in the public hearings overwhelmingly welcomed the Bill and proposed some amendments.

They mostly proposed amendments of clauses 31 and 34, as well as section 14 of the Bill. Proposals also included the insertion of new clauses to cover some thematic areas, including, amongst others, protection of the environment, community empowerment, job creation and empowerment of women, youth and people living with disabilities.

Clause 31 makes provision for 10 per cent interest participation by black persons in petroleum rights on commercial terms. Most participants proposed for 40 per cent. Clause 34 of the Bill provides for state participation at 20 per cent carried interest in all petroleum rights. However, most participants proposed state participation at 50 per cent.

Section 14 provides for 30 years petroleum rights in respect of the production phase, but most participants proposed 10 years. The committee will now consider all the inputs and deliberate on the Bill until a final product is produced for the adoption of the National Assembly.

The UPRD Bill seeks to separate petroleum provision from mineral provision, as currently provided for in the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002).

The separation is also aimed at providing two independent pieces of legislation to address matters pertinent to each industry and to bring about stability and security to investors, especially in the upstream petroleum sector. Furthermore, the Bill enhances state participation in the upstream petroleum industry and economic transformation of the industry. It includes provisions that promote petroleum resource development in a sustainable and equitable manner for the benefit of all South Africans.

The public hearings were conducted in line with Section 59 (1) (a) of the Constitution of the Republic of South Africa, which requires the National Assembly to facilitate public involvement in the legislative and other processes of the NA and its committees.

Source: Parliament of South Africa