Mines Minister: S. Africa Ready to Re-Evaluate New Oil And Gas Law


CAPE TOWN, July 15 (Reuters) - South Africa may reconsider a new oil and gas law to ensure that investors can be make profits while securing a place for the state in the sector, Mineral Resources Minister Ngoako Ramatlhodi said on Tuesday.

Parliament passed the law in March, giving the state a 20 percent free stake in new gas and oil exploration and production ventures and alarming operators such as Total and Exxon Mobil, which are looking to explore in South Africa.

"Having spent time listening to stakeholders ... I am ready for any eventuality," Ramatlhodi told parliament.

"In the event the current bill is assented to in its form, I commit to rigorous and transparent engagement with stakeholders on draft regulations," he said.

The bill is before President Jacob Zuma who must give it his assent before it becomes law.

Ramatlhodi told reporters there was broad agreement on the 20 percent free-carry for the state and 10 percent for "black empowerment", but the sticking point was on where to cap these.

"Black empowerment" refers to state-mandated targets to lift black ownership in Africa's most advanced economy, part of a government drive to rectify the racial imbalances of white apartheid rule.

"We want to limit the amount that the state can actually take, even on an agreed price, so that you allow investors to get their investment returns back," the minister said.

(Reporting by Wendell Roelf; Editing by Ed Stoddard)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Contract Administrator
Expertise: Contracts Administration
Location: Chesapeake, VA
Logistics Coordinator & Optimization Analyst
Expertise: Logistics Management
Location: Billings, MT
Associate Category Manager or Category Manager Job
Expertise: Logistics Management|Purchasing|Supply Chain Management
Location: Denver, CO
search for more jobs

Brent Crude Oil : $51.46/BBL 0.61%
Light Crude Oil : $50.52/BBL 0.64%
Natural Gas : $2.83/MMBtu 5.35%
Updated in last 24 hours