Insight
South Africa’s petroleum resources bill leaves investors in the dark
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
South Africa published its draft Upstream Petroleum Resources Development Bill in late 2019 but progress stalled as the Covid-19 pandemic took hold. The draft bill splits the country’s upstream sector from the mining industry and provides it with a separate legal framework. The bill proposes a 20% state participating interest in upstream projects, carried through both exploration and production licences. Exploration costs are not reimbursable. This carried participation is high, especially for costly deepwater frontier projects. A mandatory 10% interest for BEE companies could also increase the burden on deepwater investors.
Table of contents
- Executive summary
- A long-awaited revision
- Minimum participation for the state and local companies is set in stone
- A step too soon?
- Fiscal assumptions
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Economic analysis
- Impact of state and BEE participation
Tables and charts
This report includes the following images and tables:
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Comparison between current terms and draft billCreaming curve of emerging SSA deepwater basinsSouth Africa royalties
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PRRT scenariosGlobal comparison of state participationRegional comparison of state share
What's included
This report contains:
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