Parliament, Friday, 10 March 2023 – The Portfolio Committee on Mineral Resources and Energy heard that clause 31 of the Upstream Petroleum Resources Development Bill [B13-2021] should be amended by increasing 10 per cent interest participation by black people to at least 30 per cent.
Participants in the public hearings on the Bill at Gamalakhe Community Hall in Ugu District, KwaZulu-Natal, focused mostly on clause 31 of the Bill and called for it to be strengthened in order to empower the historically disadvantaged South Africans.
According to clause 31 of the Bill, the definition of "black persons" for purposes of the 10 per cent participation has been clarified to mean a company that is 51 per cent owned by black persons. Other participants, however, suggested that 10 per cent should be increased to 50 per cent.
The residents of Ugu District expressed different views on the Bill, wherein some welcomed it and others opposed it. Those who supported the Bill, on the one hand, were of the view that if it is passed into law, it will unlock economic and opportunities.
On the other hand, those who opposed it, opposed on the account of environmental considerations.
The 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 is also 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.
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.
Tomorrow, the committee will hold public hearings on the Bill at the Pietermaritzburg City Hall in UMgungundlovu District. 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 to facilitate public involvement in the legislative and other processes of the NA and its committees.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES 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: 081 424 748
Email: jmolafo@parliament.gov.za
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