Parliament, Sunday, 14 May 2023 - The Portfolio Committee on Mineral Resources and Energy held public hearings on the Upstream Petroleum Development Bill in Middleburg, Nkangala District Municipality in Mpumalanga yesterday.

The committee is on a nationwide public consultation process to gather citizens' inputs on the draft legislation which seeks to separate petroleum provisions from minerals provisions as currently provided for in the Mineral and Petroleum Resources Development Act (MPRD).

Mpumalanga becomes the seventh province to get an opportunity to comment on the Bill, the committee has already held public hearings in the Eastern Cape, Western Cape, Free State, Northern Cape, Limpopo and KwaZulu-Natal. It expects to conclude the consultations in the next two weeks with visits to North West and Gauteng provinces.

The Bill seeks to provide for two independent pieces of legislation addressing matters pertinent to each industry and to bring about stability and security to investors, especially in the upstream petroleum sector. It will also enhance state participation in the upstream petroleum industry and economic transformation of the industry, and provisions which promote petroleum resources development in a sustainable and equitable manner for the benefit of all South Africans.

Community members who opposed the Bill argued that there was no need fora new legislation to separate minerals and petroleum provisions, and that the current MPRD Act should be strengthened and be fully implemented.

Other participants told the committee that the Upstream Petroleum Development Bill will reduce the role of the state in the petroleum industry to be just an administrator of rights while big multinationals continue make profits. They also said there was no certainty that the separation of the act into two will result in a more effective law.

Those who supported the Bill raised concerns about the proposed 20% state ownership in petroleum companies and suggested that it be increased to 50% to prevent private sector control of the industry.

"It is important for our people to participate in legislation, the inputs are very important to us and the process of law making, we hope that at the end of the day we will come up with a better law that will work for all South Africans," said committee Chairperson Mr Sahlulele Luzipo.

The committee held public hearings in the Gert Sibande District Municipality today.

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 committee Chairperson, please contact:

Name: Sakhile Mokoena
Parliamentary Communication Services
Cell: 081 705 2130
E-mail: [email protected]

Public link

Please use the above public link if you want to share this noodl on another website.