Legislative delays plague South Africa’s upstream

Sizeable offshore potential and growing gas demand may not be enough to offset the difficulties

Regulatory uncertainty continues to hinder South Africa’s upstream ambitions, with investors waiting for clarity on new legislation before committing. The sector is subject to the general Mineral & Petroleum Resources Development Act (MPRDA), amendments to which have been “stalled since 2014...resulting in a high level of uncertainty”, while the act in its existing form is “ambiguous”, according to consultancy Fitch Solutions. Pretoria has drafted replacement legislation for the oil and gas sector in the form of the Upstream Petroleum Resources Development (UPRD) Bill. Strategic reserves Draft provisions include allowing the state—through NOC PetroSA—the option to acquire up to 20pc in p