Petroleum Bill up for public comment

THE Draft Upstream Petroleum Bill has been published and is available until 21 February for public comment.

The Bill seeks to make provision for equitable access to and sustainable development of the nation’s petroleum resources.

It aims to create an enabling environment for the acceleration of exploration and production of petroleum resources, provide for black people’s participation in the upstream petroleum sector, provide for the establishment of the Petroleum Agency of South Africa (PASA) as the national regulatory authority for the upstream petroleum sector, and provide for the constitution of the board of the agency and the appointment of the chief executive officer.

The Bill recognises that petroleum resources are not renewable and a need to accelerate petroleum exploration and production.

The Bill points out that petroleum resources are the common heritage of all citizens and that the state is the custodian of such resources.

Through the Minister of Mineral Resources and Energy, the state may grant, issue, control, refuse, administer and manage any reconnaissance permit, exploration right and production right in terms of this Act.

The Bill says the minister must ensure the sustainable development of South Africa’s petroleum resources within a framework of national environmental policy, norms and standards, and ensure the industry contributes to welfare, employment and the strengthening of the country’s trade and industry and industrial development.

An exploration right or production right is a limited real right in respect of petroleum and the block or blocks to which the right pertains.

Rights holders are eligible to bring onto the block any plant, machinery or equipment, and build, construct or lay down any surface, underground or under sea infrastructure which may be required for exploration or production.

Rights holders can also explore or produce, remove and dispose of petroleum found during production, and, subject to the National Water Act, rights holders can use water from any natural spring, lake, river or stream on or flowing through the exploration block.

No operations or studies can be carried out without environmental authorisation, a reconnaissance permit, exploration or production right.

The minister must divide the country, including its territorial waters, into numbered blocks, but the size of the block in respect of rights granted before the Act comes into effect, will not be reduced.

The Petroleum Agency would provide technical support to the minister, receive and evaluate applications for permits, and monitor and enforce compliance with permits, among other duties.

Interested and affected parties can submit written representations on the draft Bill by email to representations@dmr.gov.za.

HAVE YOUR SAY

Like our Facebook page and follow us on Twitter.

For news straight to your phone invite us:

WhatsApp – 072 069 4169

Instagram – zululand_observer