+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)


South Africa Upstream Fiscal and Regulatory Report - Pending Legislation Creates Regulatory Uncertainty

  • ID: 4327718
  • Report
  • November 2018
  • Region: South Africa, Africa
  • 18 pages
  • GlobalData
1h Free Analyst Time

Speak directly to the analyst to clarify any post sales queries you may have.

South Africa Upstream Fiscal and Regulatory Report - Pending Legislation Creates Regulatory Uncertainty


South Africa awards exploration and production licenses under a royalty and tax regime. The government has reverted to the original version of the Mineral and Petroleum Resources Development Act, withdrawing the long-awaited amendment bill. Instead, South Africa is seeking to separate the upstream hydrocarbon legislation from the mining legislation. A temporary moratorium has been placed on new applications until this legislation is defined. The pending legislation changes create uncertainty in the short-to-medium term. The award of shale gas applications also remains delayed as public consultations are revisited following increased public and lobby-group pressure. For future acreage awards, the government is planning to implement a competitive licensing round process. Previously the country held an open door policy.

“South Africa Upstream Fiscal and Regulatory Report - Pending Legislation Creates Regulatory Uncertainty”, presents the essential information relating to the terms which govern investment into South Africa’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for South Africa’s upstream oil and gas investment climate.

  • Overview of current fiscal terms governing upstream oil and gas operations in South Africa
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in South Africa.
Reasons to Buy
  • Understand the complex regulations and contractual requirements applicable to South Africa’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making.
Note: Product cover images may vary from those shown
1 Table of Contents
1.1. List of Tables
1.2. List of Figures

2. Regime Overview

3. State Take Assessment

4. Key Fiscal Terms
4.1. Royalties, Bonuses and Fees
4.1.1. Royalties
4.1.2. Exploration Fees
4.1.3. Upstream Training Trust Fees
4.2. Direct Taxation
4.2.1. Corporate Income Tax
4.2.2. Deductions and Depreciation
4.2.3. Withholding Tax
4.3. Indirect Taxation
4.3.1. Value Added Tax
4.3.2. Customs Duties
4.4. Participation Requirements
4.4.1. State Participation
4.4.2. Historically Disadvantaged South African Participation
4.5. Fiscal Stability Agreements

5. Regulation and Licensing
5.1. Legal Framework
5.1.1. Governing Law
5.1.2. Contract Type
5.1.3. Title to Hydrocarbons
5.2. Institutional Framework
5.2.1. Licensing Authority
5.2.2. Regulatory Agency
5.2.3. National Oil Company
5.3. Licensing Process
5.4. License Terms
5.4.1. Duration and Relinquishments
5.4.2. Work Obligation
5.5. Local Content
5.6. Regulations on Hydraulic Fracturing

6. Outlook

7. Appendix
7.1. References
7.2. Contact Us
7.3. Disclaimer

1.1 List of Tables
Table 1: Regime Overview
Table 2: South Africa, Onshore Exploration Fees (ZAR)
Table 3: South Africa, Offshore Exploration Fees (ZAR)
Table 4: South Africa, General and Oil & Gas Corporate Tax Rates, 1980-Present
Table 5: South Africa, Application Fees (ZAR)
Table 6: References

1.2 List of Figures
Figure 1: Regime Flow Chart
Figure 2: South Africa, Indicative NPV10/boe, IRR and State Take Comparison, Regional
Figure 3: South Africa, Legal Framework
Figure 4: South Africa, Institutional Framework
Note: Product cover images may vary from those shown