South Africa
Government revives plan to take free stake in energy projects─── 09:07 Sun, 15 Sep 2019
The government is drafting a new law that aims at securing it a free stake in all new oil and gas ventures, revising the terms of a proposal shelved four years ago.
Under the legislation, which the Department of Mineral Resources and Energy outlined to lawmakers in Cape Town this week, the state would secure 10% ownership of energy projects at the exploration phase and the rights to 10% of their production at no cost.
The law, which is still being refined, will be submitted to parliament in the final quarter of this year, said Ntokozo Ngcwabe, a deputy director-general in the department.
Oil and gas companies that have secured exploration rights have held back on costly drilling while they await clarity from the government on the commercial terms.
