Shale gas exploration will not be possible without a downward adjustment of the 20% state carry interest proposed in amendments to the Mineral Resources and Petroleum Development Amendment Bill, the South African Oil and Gas Alliance (Saoga) submitted in Parliament Tuesday. 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 permits. The alliance would prefer a state interest as close to the floor of 10%, representative Herman Neethling, said in an interview after briefing the National Council of Provinces’ select committee on land and mineral resources. The Department of Mineral Resources introduced 56 amendments to the bill after it had been referred back to Parliament by President Jacob Zuma. These amendments address the concerns of the offshore petroleum and gas industry, which welcomed them. However, they did not specifically add...

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