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Story from Parliament
The Portfolio Committee on Mineral Resources and Energy held the first public hearing on the Upstream Petroleum Resources Development (UPRD) Bill [B13-2021] in Northern Cape, at Frances Baart District at the Recreational Hall in Galeshewe, in Kimberly, on Friday 14 April.
Followed by John Taolo Gaetsewe District on the 15 April, at Wrenchville Civic Centre in Kuruman, residents submitted that the 10 percent interest participation by black-owned companies as contained in Clause 31 of the Bill should be increased to at least 50%.
The majority of participants in both Frances Baart and John Taolo Gaetsewe districts focused their oral submissions on clause 31 of the Bill. This clause in the Bill’s current form makes provision for 10% interest participation by black persons in petroleum rights on commercial terms
It defines “black persons” for the purposes of 10% participation to mean a company that is 51% owned by black persons.
The UPRD Bill seeks to separate petroleum provision from the mineral provision, as currently provided for in the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002).
The separation also provides two independent pieces of legislation to address matters pertinent to each industry and bring stability and security to investors, especially in the upstream petroleum sector.
On Sunday, 16 April 2023 Namakwa residents at Libra Hall in Bergsig, in Springbok. proposed that there should be a clause that specifically covers the development of their communities.
Most participants in the public hearings expressed a view that communities in the Namakwa District should get 20 percent carried interest in the form of a Social Labour Plan (SLP) in all petroleum activities in their areas.
Furthermore, they propose that such SLPs should be drafted in consultation with communities so that they can address their needs directly.
The residents of Northern Cape overwhelmingly welcomed the Bill and focused their input on clauses 31 and 34.
The Northern Cape is the fifth province where the committee has already conducted public hearings on the UPRD Bill after Western Cape, Eastern Cape, KwaZulu-Natal and Limpopo. Free State is next province where the committee will conduct public hearings on the Bill.
Tabled by the Minister of Mineral Resources and Energy, the UPRD Bill seeks to separate petroleum provision from the mineral provision, as currently provided in the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002).
The separation is also aimed at providing two independent pieces of legislation to address matters pertinent to each industry and bring stability and security to investors, especially in the upstream petroleum sector.
Furthermore, the Bill enhances state participation in the upstream petroleum industry and economic transformation of the industry. It includes provisions that promote petroleum resource development in a sustainable and equitable manner for the benefit of all South Africans.
The public hearings are conducted in line with Section 59 (1) (a) of the Constitution of the Republic of South Africa, which requires the National Assembly (NA) to facilitate public involvement in the legislative and other processes of the NA and its committees.
The Chairperson of the committee, Mr Sahlulele Luzipo, said that these hearings provide an opportunity for the public to submit oral input on the Bill.
He said: “Each public hearing is different and they leave us more empowered with new information on matters related to the portfolio. All inputs will be considered at the end of the hearings process in all nine provinces”.
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