South Africa’s Department of Mineral Resources and Energy (DMRE) has published a draft Petroleum Products Bill with aims to streamline the licensing and appeals process in the country’s petroleum industry.
Released on October 21 for a 60-day public comment period, the draft bill aims to repeal and replace the Petroleum Products Act of 1977.
The draft bill focuses on regulating the downstream petroleum industry and improving compliance and enforcement by increasing the powers of controllers and inspectors in the sector. Furthermore, the draft legislation aims to bring transparency and fairness to the industry while promoting the participation of previously disadvantaged groups of people.
In response to global pressure to reduce the carbon footprint of energy production, the Petroleum Products Bill proposes stricter regulations on environmental impact assessments and compliance requirements for oil and gas companies operating in South Africa.
Additionally, the draft bill proposes the establishment of a state oil company in South Africa. The state oil company will be a consolidation of the state-owned agencies PetroSA, the Strategic Fuel Fund and iGas.
