Some of the residents of West Rand District propose amendment to section 14 and clause 34 of the Upstream Petroleum Resources Development (UPRD) Bill.

They made this proposal to the Portfolio Committee on Mineral Resources and Energy when it conducted public hearings on the UPRD Bill at the Khutsong Community Hall in Merafong City Local Municipality, in Gauteng yesterday.

The residents expressed a view that the duration of the two types of petroleum right in section 14 of the Bill, in respect of the production phase, should be reduced from 30 years at the initial term of production to at least 10 years.

The two types of petroleum right could be granted in relation to onshore and offshore acreage in shallow waters or in relation to acreage designated as frontier and offshore acreage in deep waters.

On clause 34, residents proposed that the state participation at 20 per cent carried interest in all petroleum right should be increased to at least 50 per cent. This clause provides for the envisioned national petroleum company to enter into a joint operating agreement with the petroleum right holder or becomes a party to an existing joint operating agreement.

These two key proposals add to the other valuable proposals received from members of the public in 25 districts and three metropolitan municipalities across the country.

Today, the committee will hold the third public hearing on the UPRD Bill in Gauteng at the Council Chambers of the City of Tshwane Metropolitan Municipality. Gauteng is the last province to hold these public hearings.

Source: Parliament of South Africa