As previously reported, the petroleum industry (via the industry associations, the Offshore Petroleum Association of South Africa (“OPASA”) and the Onshore Petroleum Association of South Africa (“ONPASA”) have engaged with government to deliver constructive solutions for the legislative framework (the Mineral and Petroleum Resources Development Act, 28 of 2002 - “MPRDA”). The MPRDA Amendment Bill has been referred to Parliament. Challenger understands that the National Assembly (the lower house of Parliament) has concluded its role in the process, having applied its mind to the substantive defects in the Bill. The relevant committee in the National Assembly has resolved that the Bill is ready for referral to the National Council of Provinces (“NCOP”) (the upper house of Parliament). In accordance with the terms of the President’s referral of the Bill back to Parliament, the NCOP will need to convene further public hearings on the Bill to correct defects in the initial public participation process. This should be the final step in addressing the President’s reservations. The Deputy Minister of Mineral Resources, Godfrey Oliphant, was previously reported as stating publicly that the amendments will be finalised by November 2016. Challenger anticipates further progress with regard to the granting of exploration rights once the MPRDA Amendment Bill has passed through Parliament.
On a side note, I like the sound if the sound of the LNG IPPPP!
CEL Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
