Concession-based fiscal regime. The state has the option to participate in upstream developments, through PetroSA, with an interest of up to 10%. There is also a maximum 10% farm-in provision for Black Economic Empowerment (BEE) companies at pre-defined commercial terms. Relatively straightforward royalty/tax system although the mechanics of the royalty calculation are unusual compared to most petroleum fiscal systems. Licences are typically awarded on an ad-hoc basis and the vast majority of the active blocks were awarded through direct negotiations.