Draft Petroleum Resources Development Bill on track

Draft Petroleum Resources Development Bill on track
14 Oct 2019

A Draft Petroleum Resources Development Bill will soon be tabled in cabinet for approval.

The minister of mineral resources and energy, Gwede Mantashe, confirmed this during a speech at the Africa Oil and Power Conference in Cape Town.

The proposed legislation flows from the department’s decision to withdraw the Mineral and Petroleum Resources Development Amendment Bill from parliament and separate the regulation of petroleum resources from the Minerals and Petroleum Resources Development Act.

The minister also indicated that a Draft Gas Amendment Bill will be tabled in cabinet soon for consideration.

He confirmed that work on the Integrated Resource Plan (IRP) will soon be concluded.

“The Plan will lay the foundation for investment in power generation in the country. Such an investment should have the impact of lowering the cost of doing business in the country.”

The minister highlighted that the IRP makes provision for Gas to Power projects.

The Coega Special Economic Zone (SEZ) will be the site of the first LNG import terminal.

“The site will lay the foundation for new Gas to Power plants. It will also be the point of converting existing power plants from Diesel to Gas.”

The SEZ will also be used as a base for importing feedstock for the GTL refinery in Mossel Bay.

On the need for a local oil refinery, the minister confirmed that South Africa was “working closely with Saudi Aramco to conclude a feasibility study into a crude oil refinery and associated petrochemical plants”.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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