ANC celebrates assent of the Upstream Petroleum Resources Development Act
31 October 2024
The African National Congress (ANC) congratulates His Excellency, President Cyril Ramaphosa on the historic assent of the Upstream Petroleum Resources Development Bill, officially establishing it as an Act of Parliament.
This revolutionary achievement of the sixth Parliament cements our economic sovereignty and advance our national democratic revolution (NDR). The Act inaugurates a transformative era for our petroleum resources, ensuring that South Africa's natural wealth is harnessed for the benefit of our people and contributes directly to economic transformation, redressing historic injustices, and national equity. The ANC celebrates this Act as a watershed moment in our journey towards securing South Africa's resource sovereignty. By affirming state custody of our petroleum resources and embedding a 20% carried interest in all petroleum rights through a state-owned entity, the Act responds to the long-standing call for a capable, ethical and developmental state that actively steers our economy toward shared prosperity.
The progressive legislative framework is tailored specifically to the petroleum sector in order to establish clarity and stability, promotes investment, and align with global best practices in resource management.
The Act builds on commitments made by President Ramaphosa at the 2nd South African Investment Conference in 2019 where he pledged policy certainty and stability within the oil and gas sector. It further meets this commitment with a comprehensive framework that improves investor confidence while supporting the ANC's enduring resolutions to restore domestic refinery capacity, secure South Africa's energy sovereignty, and empower black South Africans as key participants in this vital sector.
The potential economic benefits of this legislation are enormous and optimistic projections indicate that oil and gas sector advancements could break the current low GDP growth traps in our economy. In Namibia, recent oil discoveries have brought about a remarkable GDP growth, demonstrating the transformative impact of prudent petroleum resource management. Guided by this Act, the ANC-led Govemment of Unity (GNU) will ensure that economic gains flow back to our people, correcting the injustices from our past and establishing opportunities for black South Africans to lead in this critical sector.
The Upstream Petroleum Resources Development Act is not merely a regulatory update, it is a cornerstone of South Africa's economic transformation agenda. This legislation embodies the ANC's commitments from the 55th National Conference to advance youth employment, empower black ownership, and foster industrialisation. With this Act, we are coming closer to realising the ideals of the Freedom Charter that "the people shall share in the country's wealth."
The ANC reaffirms its role as the people's champion, leading South Africa towards a future where our resources serve our people, strengthen our economy, and advance the objectives of the NDR.
Issued by Mahlengi Bhengu-Motsiri, National Spokesperson, ANC, 31 October 2024
