Oil and gas sector needs its own legislation

Cape Town – The South African Mineral Resources minister Mosebenzi Zwane has confirmed that the oil and gas in South Africa will be governed by its own legislation in the bear future.

This legislation is said to be separate from the current mining laws and regulations. Zwane went on to say that he is confident the amendments to the Mineral and Petroelum Resources Development Act (MPRDA) by the end of this year the parliament will agree and pass the proposal.

It is also said that the bill is currently before the National Council of Province (NCOP) for further deliberations.

News24 has also reported that the petroleum sector and the Mineral Resources Minister had a very successful negotiations that was held late last year during Operation Phakisa.

The Department of Mineral Resource has agreed to look at the clause in MPRDA again.

This clause pertains to free carried interest in which the government to tax 20% in all the exploration and products right.

This tax also applies a participation in the form acquisitions at either the price they agreed or through the production sharing agreement.

But Zwane also went on to say that this proposal does not mean that people who were disadvantaged in the past should just “come in and be favoured”.

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