Insight

South Africa’s petroleum resources bill leaves investors in the dark

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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
    • Impact of state and BEE participation

Tables and charts

This report includes the following images and tables:

  • Comparison between current terms and draft bill
  • Creaming curve of emerging SSA deepwater basins
  • South Africa royalties
  • PRRT scenarios
  • Global comparison of state participation
  • Regional comparison of state share

What's included

This report contains:

  • Document

    South Africa’s petroleum resources bill leaves investors in the dark

    PDF 1.15 MB