South Africa - 01

South Africa: Slow Signs of Exploration Activity in 2017

Despite political and regulatory uncertainty, PASA has continued to see some muted exploration interest in 2017, mostly in onshore blocks. Onshore activity continues to experience greater opposition from communities and other economic sectors, particularly agriculture. Additionally, environmental concerns and the potential impact on the fishing sector have raised opposition toward offshore exploration, including seismic surveys.

South Africa - 04

South Africa: New Mining Charter Preludes Upstream Black Economic Empowerment

Minister Zwane announced on 6 June 2017 that the much-delayed update to the Mining Charter will be published in the Government Gazette by mid-June. Proposed amendments to the Mineral and Petroleum Resource Development Act (MPRDA) Amendment Bill suggest that the upstream oil and gas sector will not be required to comply with the Mining Charter.

South Africa - 04

South Africa: ANC Policy Discussion Documents Repeat Ideas for Energy Sector

Earlier this week the ANC released the discussion documents that will inform debate ahead of its National Policy Conference between 30 June and 5 July. The documents provide a strong indication of the party’s policy trajectory ahead of its December National Conference, where policy resolutions will be adopted. The documents include a number of important

South Africa - 01

South Africa: ANC Policy Discussion Documents Repeat Ideas for Energy Sector

Earlier this week the ANC released the discussion documents that will inform debate ahead of its National Policy Conference between 30 June and 5 July. The documents provide a strong indication of the party’s policy trajectory ahead of its December National Conference, where policy resolutions will be adopted. The documents include a number of important

South Africa - 02

South Africa: PetroSA’s Financial Report Increases Scrutiny

PetroSA’s 2015-16 financial statements lodged before parliament on 23 September highlight its dire financial position. With the feedstock reserves for its Mossel Bay gas-to-liquid (GTL) refinery depleting, the company’s financial sustainability is coming under increasing scrutiny. PetroSA’s directors believe that the company will continue as a going concern, but this will likely require further state

South Africa - 04

South Africa: Credit Rating Review Ups Pressure on State-Owned Companies

Moody’s announced on 14 September that it had placed Eskom and various other SOEs on review for downgrade. This followed various investment managers indicating that they were either suspending or reducing lending to SOEs, including Eskom, over governance and transparency concerns. Eskom has indicated that it will engage with Moody’s, but the announcement will place

South Africa - 06

South Africa: Election Violence Underscores ANC Divisions

Violent protests in and around Pretoria between 19 and 22 June underscore a deterioration in the political environment ahead of local elections on 3 August. Although it is difficult to unravel the motivation behind the violent protests, which have resulted in looting and several deaths, the central cause was the announcement that senior ANC politician

South Africa - 05

South Africa: MPRDA Update: Uncertainty to Continue into 2016

Despite negotiations between the oil and gas industry and the Department of Mineral Resources over aspects of the MPRDA Amendment Bill, the legislative process is unlikely to be resolved in time for the bill to be finalized in 2015 or even early 2016. As a result, the uncertainty for IOCs over key aspects of the

South Africa - 06

South Africa: Forced Leave for Senior Executives Deepens PetroSA Leadership Vacuum

This week the board of PetroSA imposed a leave of absence on three senior executives, allegedly to enable an inquiry into the company’s poor performance to take place. According to a report in the national daily newspaper Business Day on 28 May, PetroSA CEO Nosizwe Nokwe-Macamo, CFO Lindiwe Mthimunye-Bakoro and Acting Vice President of Upstream