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

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05 October 2020

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

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
    • Impact of state and BEE participation

Tables and charts

This report includes 6 images and tables including:

  • 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