ATC230920: Report of the Portfolio Committee on Mineral Resources and Energy on the Upstream Petroleum Resources Development Bill [B13 - 2021], dated 20 September 2023

Mineral Resources and Energy

Report of the Portfolio Committee on Mineral Resources and Energy on the Upstream Petroleum Resources Development Bill [B13 - 2021], dated 20 September 2023

The Portfolio Committee on Mineral Resources and Energy (hereafter, the Committee), having considered the Upstream Petroleum Resources Development Bill [B13 - 2021] (National Assembly – section 76), referred to it and classified by the Joint Tagging Mechanism (JTM) as a section 76 Bill, reports the Bill with amendments [B13A-2021], as follows:

1. Purpose of the Bill

The Bill seeks to provide for orderly development of petroleum resources; to provide for equitable access to, and sustainable development of, the nation’s petroleum resources; to provide for active State and black persons’ participation in the development of the nation’s petroleum resources; to provide for a petroleum right that integrates the right to explore and to produce; to provide for the facilitation of acquisition of petroleum geo-technical data; to provide for a controlled application system through licensing rounds; to create an enabling environment for the acceleration of exploration and production of the nation’s petroleum resources; to provide for third party access to upstream petroleum infrastructure; to provide for a petroleum right holder to sell a percentage of petroleum to the State for strategic stocks requirements; to designate a state-owned company as an entity responsible for managing the State’s carried interest in petroleum rights; to provide for the advancement of national developmental imperatives by the state-owned company through the development of petroleum resources; to provide for the holder of a petroleum right to retain its empowerment status after the exit of black persons under circumscribed circumstances; to provide for local content as a development strategy to enable skills development, local recruitment and national participation through supply of goods and services; to designate the Petroleum Agency of South Africa as the regulatory authority for the upstream petroleum sector; and to provide for matters connected therewith.

2. Process followed by the Committee in processing the Bill

• The Bill was tabled in Parliament and referred to the Committee on 1 July 2021 by the Minister of Mineral Resources and Energy. 40 2
• The Committee was briefed by the Department of Mineral Resources and Energy on the Bill on 10 May 2022.
• The Bill was published for public comments in local newspapers in 2022 and the deadline for public submissions was 29 July 2022. About 16 written submissions were received from various stakeholders.
• Stakeholders who indicated an interest in presenting their submissions to the Committee were invited to do so on 18 November 2022.
• Post the virtual public hearings of 18 November 2022, the Department of Mineral Resources and Energy was invited on 22 November 2022 to provide responses on the written submissions.
• In line with its mandate of processing legislation, the Committee conducted Provincial Public Hearings on the Bill from 17 February 2023 to 28 May 2023 in nine (9) provinces. There were 5 603 participants who attended the public hearings across the nine (9) provinces. Of the 5 603 participants, 656 made oral submissions to the Upstream Petroleum Resources Development Bill.
• The Committee held its deliberations on the Bill on 15,16, 17, 22, 23, 29 August 2023, 05 and 12 September 2023. The Committee considered the Bill in its entirety.
• The Committee started clause-by-clause deliberations on 19 September 2023.

3. Committee decision on the Bill

The Portfolio Committee on Mineral Resources and Energy, having considered the subject of the Upstream Petroleum Resources Development Bill [B13 – 2021] (National Assembly – sec 76), referred to it and classified by the Joint Tagging Mechanism (JTM) as a section 76 Bill, reports the Bill with amendments [B13A – 2021] The Democratic Alliance (DA) objected to the following clauses: 1, 2, 28, 31, 32, 33, 34, 36 and 107.

Report to be considered.