Petroleum Legislation and Regulations

6. Industry viewPhoto: Sasol

One of the major consideration for the petroleum sector in the making and implementation of oil and gas law is the potential for conflicts between national interests and the interests of the international petroleum industry. It is important to ensure there is sufficient competition amongst oil companies and within the supply industry to serve for the interest of national and international industry participants, by opening up the sector and building dialogue within the authorities and the industry on the direction of legislative developments.

This interaction should aim for capacity and trust building within the industry stakeholders and between them and policy makers, and to enhance transparency when deciding on approvals for each important activity such as drilling, development, pipeline transportation, and disposal.

For the foreign investor, it is often preferable that the general framework for exploration and production is legislated under a generic petroleum law, so there is room for negotiations of the details under the contract. Nevertheless, a well-defined and detailed tax law – within the petroleum code or as a separate legislation would give more predictability and increase investor appetite.