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Summary on Law and Matters Related to Oil and Gas

- Featured article by LAWYERS-ONLINE.CO.ZA - June 2019

In South Africa, the oil and gas industry is primarily governed by the Mineral and Petroleum Resources Development Act 28 of 2002. Under this act, it is established that these resources technically belong to the South African nation with a custodian appointed in the form of the Minister of Mineral Resources. Therefore anyone who wants to explore the possibility of mining for gas and oil in South Africa needs to go through the Minister to obtain the necessary permits, rights and permissions.

There is also the Petroleum Agency of South Africa, which regulates the production and exploration of petroleum products, and it can make recommendations to the Minister regarding applications and rights, as well as compliance with the legislation. It should also be noted that the National Energy Act 34 of 2008 has established the National Energy Regulator, which applies to the oil and gas industry as well as electricity.

We should also look at The Gas Act 48 of 2001 when trying to establish the legality of storing gas. It also makes way for the National Energy Regulator to issue licences for the construction of gas storage facilities for commercial reasons.

Lastly, we have to take into consideration The Mineral and Petroleum Resources Royalty Act 28 of 2008 under which a royalty can be applied to mineral resources in South Africa that are transferred – including disposal and consumption.

If you require advice regarding the law as it related to Oil and Gas in South Africa, do not hesitate to contact us and we will refer your query to an attorney who can assist.

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