Legislative reform
National Petroleum Company Bill (aka Eskom 2.0)

Summary

Early in October 2024, the Cabinet approved submitting the South African National Petroleum Company (SANPC) Bill of 2024 to Parliament. The bill establishes the State Petroleum Company, as contemplated in section 34 of the UPRD Act, through a merger of PetroSA, the South African Gas Development Company (iGas), and the Strategic Fuel Fund (SFF).

Canvas not supported.

Is it working?

Not yet in effect.

Actions

The board has been announced by the minister of mineral resources and energy.

Are there plans?

Approved by Cabinet, the bill has been sent to parliament.

Is it on the agenda?

The call for public comments closed on 15 January 2024. On 3 April 2024 Mineral Resources and Energy Minister Gwede Mantashe announced the inaugural board of the South African National Petroleum Company (SANPC), as well as Godfrey Moagi's appointment as interim CEO of the state-owned enterprise.

Goals

To establish a state-owned petroleum company. The SANPC will be the state's energy champion, facilitating energy infrastructure along the energy value chain. Its functions will include, but are not limited to, managing the state's exploration and production rights, interests acquired and exercised under the Upstream Petroleum Resources Development Act, and ensuring that petroleum resources are developed in a sustainable manner that benefits the people of South Africa

Summary

Early in October 2024, the Cabinet approved submitting the South African National Petroleum Company (SANPC) Bill of 2024 to Parliament. The bill establishes the State Petroleum Company, as contemplated in section 34 of the UPRD Act, through a merger of PetroSA, the South African Gas Development Company (iGas) and the Strategic Fuel Fund (SFF). The company has been established and became opertional in 2025; however the bill is still before parliament and is not yet in effect.

Canvas not supported.

Is it working?

The company is operational ahead of the National Petroleum Company Bill being enacted -- it is still before Parliament.

Actions

The board has been announced by the minister of minerals and petroleum resources.

Are there plans?

Approved by Cabinet, the bill has been sent to parliament.

Is it on the agenda?

The call for public comments closed on 15 January 2024. On 3 April 2024 Mineral Resources and Energy Minister Gwede Mantashe announced the inaugural board of the South African National Petroleum Company (SANPC), as well as Godfrey Moagi's appointment as interim CEO of the state-owned enterprise.

Goals

To establish a state-owned petroleum company. The SANPC will be the state's energy champion, facilitating energy infrastructure along the energy value chain. Its functions will include, but are not limited to, managing the state's exploration and production rights, interests acquired and exercised under the Upstream Petroleum Resources Development Act and ensuring that petroleum resources are developed in a sustainable manner that benefits the people of South Africa.

Summary

Early in October 2024, the Cabinet approved submitting the South African National Petroleum Company (SANPC) Bill of 2024 to Parliament. The bill establishes the State Petroleum Company, as contemplated in section 34 of the UPRD Act, through a merger of PetroSA, the South African Gas Development Company (iGas) and the Strategic Fuel Fund (SFF). The company has been established and became opertional in 2025; however the bill is still before parliament and is not yet in effect.

Canvas not supported.

Is it working?

The company is operational ahead of the National Petroleum Company Bill being enacted -- it is still before Parliament.

Actions

The board has been announced by the minister of minerals and petroleum resources.

Are there plans?

Approved by Cabinet, the bill has been sent to parliament.

Is it on the agenda?

The call for public comments closed on 15 January 2024. On 3 April 2024 Mineral Resources and Energy Minister Gwede Mantashe announced the inaugural board of the South African National Petroleum Company (SANPC), as well as Godfrey Moagi's appointment as interim CEO of the state-owned enterprise.

Goals

To establish a state-owned petroleum company. The SANPC will be the state's energy champion, facilitating energy infrastructure along the energy value chain. Its functions will include, but are not limited to, managing the state's exploration and production rights, interests acquired and exercised under the Upstream Petroleum Resources Development Act and ensuring that petroleum resources are developed in a sustainable manner that benefits the people of South Africa.

Summary

The Bill aims to establish the SANPC, ensure proper governance as well as to consolidate and transfer assets of the company in line with the relevant legislation, with the Minister as the sole shareholder of the company.

Canvas not supported.

Is it working?

Not yet

Actions

The board has been announced by the minister of mineral resources and energy

Are there plans?

The operationalisation of the company

Is it on the agenda?

The SANPC will be the state's energy champion, facilitating energy infrastructure along the energy value chain. Its functions will include, but are not limited to, managing the state's exploration and production rights, interests acquired and exercised under the Upstream Petroleum Resources Development Act, and ensuring that petroleum resources are developed in a sustainable manner that benefits the people of South Africa

Goals

The call for public comments closed on 15 January 2024. On 3 April 2024 Mineral Resources and Energy Minister Gwede Mantashe announced the initial board of the South African National Petroleum enterprise (SANPC), as well as Godfrey Moagi's appointment as interim CEO of the state-owned enterprise.

Summary

The Bill aims to establish the SANPC, ensure proper governance as well as to consolidate and transfer assets of the company in line with the relevant legislation, with the minister as the sole shareholder of the company.

Canvas not supported.

Is it working?

Not yet in effect.

Actions

The board has been announced by the minister of mineral resources and energy.

Are there plans?

The operationalisation of the company.

Is it on the agenda?

The call for public comments closed on 15 January 2024. On 3 April 2024 Mineral Resources and Energy Minister Gwede Mantashe announced the inaugural board of the South African National Petroleum Company (SANPC), as well as Godfrey Moagi's appointment as interim CEO of the state-owned enterprise.

Goals

The SANPC will be the state's energy champion, facilitating energy infrastructure along the energy value chain. Its functions will include, but are not limited to, managing the state's exploration and production rights, interests acquired and exercised under the Upstream Petroleum Resources Development Act, and ensuring that petroleum resources are developed in a sustainable manner that benefits the people of South Africa

Summary

Early in October 2024, the Cabinet approved submitting the South African National Petroleum Company (SANPC) Bill of 2024 to Parliament. The bill establishes the State Petroleum Company, as contemplated in section 34 of the UPRD Act, through a merger of PetroSA, the South African Gas Development Company (iGas), and the Strategic Fuel Fund (SFF).

Canvas not supported.

Is it working?

Not yet in effect.

Actions

The board has been announced by the minister of mineral resources and energy.

Are there plans?

Approved by Cabinet, the bill has been sent to parliament.

Is it on the agenda?

The call for public comments closed on 15 January 2024. On 3 April 2024 Mineral Resources and Energy Minister Gwede Mantashe announced the inaugural board of the South African National Petroleum Company (SANPC), as well as Godfrey Moagi's appointment as interim CEO of the state-owned enterprise.

Goals

To establish a state-owned petroleum company. The SANPC will be the state's energy champion, facilitating energy infrastructure along the energy value chain. Its functions will include, but are not limited to, managing the state's exploration and production rights, interests acquired and exercised under the Upstream Petroleum Resources Development Act, and ensuring that petroleum resources are developed in a sustainable manner that benefits the people of South Africa

Summary

Early in October 2024, the Cabinet approved submitting the South African National Petroleum Company (SANPC) Bill of 2024 to Parliament. The bill establishes the State Petroleum Company, as contemplated in section 34 of the UPRD Act, through a merger of PetroSA, the South African Gas Development Company (iGas), and the Strategic Fuel Fund (SFF).

Canvas not supported.

Is it working?

Not yet in effect.

Actions

The board has been announced by the minister of mineral resources and energy.

Are there plans?

Approved by Cabinet, the bill has been sent to parliament.

Is it on the agenda?

The call for public comments closed on 15 January 2024. On 3 April 2024 Mineral Resources and Energy Minister Gwede Mantashe announced the inaugural board of the South African National Petroleum Company (SANPC), as well as Godfrey Moagi's appointment as interim CEO of the state-owned enterprise.

Goals

To establish a state-owned petroleum company. The SANPC will be the state's energy champion, facilitating energy infrastructure along the energy value chain. Its functions will include, but are not limited to, managing the state's exploration and production rights, interests acquired and exercised under the Upstream Petroleum Resources Development Act, and ensuring that petroleum resources are developed in a sustainable manner that benefits the people of South Africa

Analyst: Lameez Omarjee
Status: In progress
Last Updated:
Next Update:
Reform Area:
Reform:

    If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.

    UPRDB

    Summary

    On 29 October, the President signed the Upstream Petroleum Rights Development (UPRD) Act. The implementation date is to be determined

    Canvas not supported.

    Is it working?

    Not yet in effect.

    Actions

    It is now an act of parliament with implementation date to be determined.

    Are there plans?

    Signed to an act, awaiting implementation date.

    Is it on the agenda?

    Signed into law on 29 October.

    Goals

    For the upstream petroleum industry to grow and thrive, the Upstream Petroleum Resources Development (UPRD) Act is an essential legislative foundation. The act encourages a systematic approach to resource management by establishing a petroleum right that covers both the exploration and production stages, which in turn boosts confidence among investors. Two separate licensing phases, each governed by ministerial notices, guarantee openness and flexibility by permitting a minimal work commitment and providing an open-door system for potential investors. Additionally, it demonstrates the government's commitment to balancing the public interest by maintaining a 20% carrying state interest in all petroleum rights and allowing holders to reclaim a sizeable amount of the state's share. Importantly, the requirement that at least 10% of petroleum rights be given to black people on commercial terms promotes equity and inclusivity in the sector.

    Summary

    On 29 October, the President assented to the Upstream Petroleum Rights Development (UPRD) Act. The implementation date is to be determined. Two separate licensing phases, each governed by ministerial notices, guarantee openness and flexibility by permitting a minimal work commitment and providing an open-door system for potential investors. Additionally, it demonstrates the government's commitment to balancing the public interest by maintaining a 20% carrying state interest in all petroleum rights and allowing holders to reclaim a sizeable amount of the state's share. Importantly, the requirement that at least 10% of petroleum rights be given to black people on commercial terms promotes equity and inclusivity in the sector.

    Canvas not supported.

    Is it working?

    Not yet in effect.

    Actions

    It is now an act of parliament with implementation date to be determined by the president. This will follow after regulations are published.

    Are there plans?

    Signed to an act, but it comes into effect on a date proclaimed by the president through another government gazette. UPRDA regulations, led by the Department of Mineral and Petroleum Resources. These are scheduled for completion by September.

    Is it on the agenda?

    Signed into law by President Cyril Ramaphosa on 29 October 2024.

    Goals

    For the upstream petroleum industry to grow and thrive, the Upstream Petroleum Resources Development (UPRD) Act is an essential legislative foundation to be put in place. The act encourages a systematic approach to resource management by establishing a petroleum right that covers both the exploration and production stages, which in turn boosts confidence among investors.

    Summary

    On 29 October, the President assented to the Upstream Petroleum Rights Development (UPRD) Act. The implementation date is to be determined. Two separate licensing phases, each governed by ministerial notices, guarantee openness and flexibility by permitting a minimal work commitment and providing an open-door system for potential investors. Additionally, it demonstrates the government's commitment to balancing the public interest by maintaining a 20% carrying state interest in all petroleum rights and allowing holders to reclaim a sizeable amount of the state's share. Importantly, the requirement that at least 10% of petroleum rights be given to black people on commercial terms promotes equity and inclusivity in the sector.

    Canvas not supported.

    Is it working?

    Not yet in effect.

    Actions

    It is now an act of parliament with implementation date to be determined by the president. This will follow after regulations are published.

    Are there plans?

    Signed to an act, but it comes into effect on a date proclaimed by the president through another government gazette. UPRDA regulations, led by the Department of Mineral and Petroleum Resources. These are scheduled for completion by September.

    Is it on the agenda?

    Signed into law by President Cyril Ramaphosa on 29 October 2024.

    Goals

    For the upstream petroleum industry to grow and thrive, the Upstream Petroleum Resources Development (UPRD) Act is an essential legislative foundation to be put in place. The act encourages a systematic approach to resource management by establishing a petroleum right that covers both the exploration and production stages, which in turn boosts confidence among investors.

    Summary

    The NCOP committee was briefed by DMRE in late November last year on this bill after it was passed by the National Assembly on 26 October. The NCOP must hold provincial public hearings before it can adopt this Section 76 bill.

    Canvas not supported.

    Is it working?

    Yes

    Actions

    Passed in the national assembly

    Are there plans?

    The plan is to get concurrence from the NCOP since this is a section 76 bill

    Is it on the agenda?

    The URPD Bill is the government’s bid to separate petroleum provision from mineral provision in South Africa, which will create two separate pieces of legislation for those respective industries. The bill is currently with the National Council of Provinces for concurrence.

    Goals

    Awaiting to get concurrence from national council of provinces

    Summary

    The bill aims to attempting to strengthen laws pertaining to petroleum activities upstream. It highlights a significant value proposition for South Africa, especially since it complies with internationally accepted rules and standards in the oil and gas industry. It also advocates for the establishment of a state petroleum company.

    Canvas not supported.

    Is it working?

    To be determined.

    Actions

    Passed by the NCOP, awaiting signature.

    Are there plans?

    The bill is awaiting signature by the president.

    Is it on the agenda?

    The bill is currently on the president's desk awaiting signature to be signed into law.

    Goals

    The URPD Bill is the government’s bid to separate petroleum provision from mineral provision in South Africa, which will create two separate pieces of legislation for those respective industries.

    Summary

    On 29 October, the President signed the Upstream Petroleum Rights Development (UPRD) Act. The implementation date is to be determined

    Canvas not supported.

    Is it working?

    Not yet in effect.

    Actions

    It is now an act of parliament with implementation date to be determined.

    Are there plans?

    Signed to an act, awaiting implementation date.

    Is it on the agenda?

    Signed into law on 29 October.

    Goals

    For the upstream petroleum industry to grow and thrive, the Upstream Petroleum Resources Development (UPRD) Act is an essential legislative foundation. The act encourages a systematic approach to resource management by establishing a petroleum right that covers both the exploration and production stages, which in turn boosts confidence among investors. Two separate licensing phases, each governed by ministerial notices, guarantee openness and flexibility by permitting a minimal work commitment and providing an open-door system for potential investors. Additionally, it demonstrates the government's commitment to balancing the public interest by maintaining a 20% carrying state interest in all petroleum rights and allowing holders to reclaim a sizeable amount of the state's share. Importantly, the requirement that at least 10% of petroleum rights be given to black people on commercial terms promotes equity and inclusivity in the sector.

    Summary

    On 29 October, the President signed the Upstream Petroleum Rights Development (UPRD) Act. The implementation date is to be determined

    Canvas not supported.

    Is it working?

    Not yet in effect.

    Actions

    It is now an act of parliament with implementation date to be determined.

    Are there plans?

    Signed to an act, awaiting implementation date.

    Is it on the agenda?

    Signed into law on 29 October.

    Goals

    For the upstream petroleum industry to grow and thrive, the Upstream Petroleum Resources Development (UPRD) Act is an essential legislative foundation. The act encourages a systematic approach to resource management by establishing a petroleum right that covers both the exploration and production stages, which in turn boosts confidence among investors. Two separate licensing phases, each governed by ministerial notices, guarantee openness and flexibility by permitting a minimal work commitment and providing an open-door system for potential investors. Additionally, it demonstrates the government's commitment to balancing the public interest by maintaining a 20% carrying state interest in all petroleum rights and allowing holders to reclaim a sizeable amount of the state's share. Importantly, the requirement that at least 10% of petroleum rights be given to black people on commercial terms promotes equity and inclusivity in the sector.

    Analyst: Lameez Omarjee
    Status: In progress
    Last Updated:
    Next Update:
    Reform Area:
    Reform:

      If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.