Parliament, Thursday, 26 October 2023 – The Chairperson of the Portfolio Committee on Mineral Resources and Energy, Mr Sahlulele Luzipo, has welcomed the passing of the Upstream Petroleum Resources Development (UPRD) Bill by the National Assembly (NA).
Mr Luzipo views the NA’s decision as a stamp of approval for the rigorous work undertaken by the committee during its processing of the Bill. For a period of three months between February and May 2023, the committee has traveled the length and breadth of the country, conducting public hearings on the UPRD Bill in line with Section 59 (1) (a) of the Constitution of the Republic of South Africa.
The public hearings afforded South Africans in 25 district municipalities and 4 metropolitan municipalities an opportunity to provide input on the Bill. Mr Luzipo said: “Everyone who contributed inputs on the Bill whether in written or oral form should take pride in knowing that their collective effort has contributed a great deal to the strengthening of South Africa’s constitutional democracy.”
The UPRD Bill seeks to, amongst others, separate petroleum provision from mineral provision, as currently provided for in the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002). The separation is aimed at providing two independent pieces of legislation to address matters pertinent to each industry and to bring about stability and security to investors, especially in the upstream petroleum sector.
Notably, the Bill further provides for the establishment of a national state-owned company as an entity responsible for managing the State’s participation at 20% carried interest in all petroleum rights, and designates the Petroleum Agency of South Africa as the regulatory authority for the upstream petroleum sector. It also provides for 10% participation by black persons in petroleum rights on commercial terms.
Mr Luzipo is confident that once it is passed by the National Council of Provinces, the Bill will then be enacted into law by the President.
ISSUED BY PARLIAMENTARY COMMUNICATION ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES AND ENERGY, MR SAHLULELE LUZIPO.
For media enquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Mr Justice Molafo
Tel: 021 403 8444
Cell: 081 424 7481
Email: jmolafo@parliament.gov.za
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