ENERGY SUBMISSION
Oil and gas industry lobbies for lower state-carried interest
The proposed 20% state-carried interest will drive up gas prices, charges South African Oil and Gas Alliance
The oil and gas industry lobbied Parliament on Tuesday for a lower state-carried interest than the 20% proposed in the Mineral Resources and Petroleum Development Amendment Bill, saying this was necessary for the viability of the industry. South African Oil and Gas Alliance representative Herman Neethling, who made the submission to the National Council of Provinces’ select committee on land and mineral resources, told Business Day the alliance preferred a state interest close to the floor of 10%. The government has hailed the potential exploitation of shale gas in the Karoo as a possible "game changer" for the country. Shell, Falcon Oil and Gas and Bundu Gas and Oil have applied for exploration licences that government officials have indicated could be awarded by the end of September. The Department of Mineral Resources introduced 56 amendments to the bill after it was referred back to Parliament by President Jacob Zuma. The amendments address the concerns of the offshore petroleum...
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