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Resource Plan (IRP). Both call for indigenous hydrocarbons – conventional and unconventional – and independent power production to play an increasing role in the nation’s energy mix. The national power utility also intends to replace coal-fired power stations with gas-fired counterparts, in line with the vision of the NDP. The advent of gas-fired power stations will represent a ready, indigenous market for operators that make discoveries of gas in South Africa, ensuring it will be far easier to monetise smaller discoveries that may otherwise have remained undeveloped. As custodian, Petroleum Agency SA ensures that companies applying for gas rights are vetted to make sure they are financially qualified and technically capable. Applicants also need to have a good track record in terms of oil and gas exploration activity, as well as regard for the environment. This applies to both local and foreign companies. Oil and gas exploration requires enormous capital outlay and can represent a risk to workers, communities and the environment. Applicants are therefore required to prove their capabilities and safety record and must carry insurance for environmental rehabilitation. SOCIAL AND LABOUR PLANS In addition, all planned activities can only be carried out after completion of an environmental impact assessment and under an approved environmental management plan, after consultation with the public as well as interested and affected parties. Explorers are also required to contribute to skills development through the agency’s Upstream Training Trust. Oil and gas exploration in South Africa is regulated in terms of the Mineral and Petroleum Resources Development Act (MPRDA) of 2002, which stipulates that applicants for production rights are required to submit social and labour plans (SLPs) to assist in transforming the industry, promoting employment and advancing social and economic welfare in South Africa. Applicants must develop and implement, where applicable, comprehensive SLPs that cover human resources-development programmes, community development, housing and living conditions, and employment equity. In addition to the MPRDA, other acts also regulate the sector – including the National Environmental Management Act, the Royalties Act, the Mining Titles Registration Act and the National Water Act. These acts and regulations have served the upstream industry well and are all in line with international standards. Minister of Mineral Resources Gwede Mantashe and President Cyril Ramaphosa have recently stated that oil and gas exploration and production activities should have their own standalone legislation, separate from that applicable to hard mineral mining. This legislation is being drafted and the Agency is part of the team at the Department of Mineral Resources working on it. In today’s world, oil and gas remain the most critical of energy resources, and Petroleum Agency SA is in full support of those entering the South African oil and gas exploration and production industries. The Agency is fully committed to ensuring that our government and policy-makers sustain the sector for the benefit of all involved and will do everything in its power to advance the industry.

OUR VISION A diverse upstream industry contributing to energy security through sustainable growth in exploration and development of oil and gas. OUR MISSION To promote, facilitate and regulate exploration and sustainable development of oil and gas contributing to energy security in South Africa.

ABOUT PETROLEUM AGENCY SA Petroleum Agency SA was established in 1999 by Ministerial directive and is mandated through the Mineral and Petroleum Resources Development Act, 2002 (Act No.28 of 2002) together with the National Environmental Management Act, 1998 (Act No.107 of 1998). These Acts provide for Petroleum Agency SA to evaluate and promote oil and gas potential exploration and production activities in South Africa, to regulate oil and gas exploration and the production industry and to archive all geotechnical data produced through oil and gas exploration. The Agency acts as an advisor to the government on issues regarding oil and gas exploration and production and carries out special projects at the request of the Minister.

Profile for Global Africa Network Media

Gauteng Business 2020-21  

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