Players in the oil and gas industry have warned of increasing impatience over the continued uncertainty surrounding the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill.

Parliament’s Portfolio Committee on Mineral Resources this week delayed its deliberations on changes to the controversial legislation on petroleum and mining.

Investors expressed their frustration at a stakeholder meeting held by Parliament’s Portfolio Committee on Energy, in Cape Town, on Thursday night.

“We need policy certainty. So far we see a lot of changes that create uncertainty. Without certainty, there will be no capital,” Badumo Gas executive chairperson Don Ncube warned the committee.

Potential investors have expressed concern about proposals in the MPRDA Amendment Bill, which they said gave a large slice of revenue to government while companies have to bear all the risks of exploration.

They wanted clarity on a proposed 20% free carried interest for the State in all new oil and gas ventures, with an option for government to buy a further 30% at market-related rates.

The Bill also proposed requirements for a 26% black economic-empowerment stake.

Foreign companies were especially concerned that this did not leave much of a stake for them.

"We need a reasonable regulatory environment with certainty and stability. We work on a 30-year basis . . . on a continuum from exploration to production. We need assurances that we will have reasonable returns," said Anadarko MD Marek Ranoszek.

Ncube said there was a lack of understanding of the obstacles that faced local black investors in particular. He said government needed to enable new players and entrepreneurs to enter the oil and gas space and make it worthwhile for them to invest.

“If you are looking for investment, fresh capital, technology and ideas, then we need policy certainty.”

Thombo Petroleum director Nazmi Adams said he was "significantly more worried and less willing" to put money into exploration given the current regulatory environment.

“I feel a lot more uncomfortable now than five years ago. I spend a lot of time trying to pacify investors. Exploration is a big gamble. You put in big money and hope to win. If government is taking a share, we need to know more about it.”

The Portfolio Committee on Mineral Resources had delayed deliberations on the MPRDA Amendment Bill as there was concern that the latest draft of the Bill contained changes that affected legislation administered by other government departments. New amendments also needed alignment with environmental legislation. The Bill was criticised for being vague.

The DA’s spokesperson on energy Lance Greyling suggested that the Bill be split into two – one for mining and the other for oil and gas, as they were such different industries.

He said the legislation should not be rushed through Parliament, as it was deeply flawed. He said it was highly unlikely that the Bill would be passed by the current Parliament and would be put on hold until after the general elections on May 7.

“We need to put in place appropriate incentives for investors, so that they are prepared to sink long-term money into projects," said Greyling.

Portfolio Committee on Energy chairperson Sisa Njikelana conceded that the rate at which members of Parliament were considering the MPRDA Amendment Bill was not fast enough.

“We take note of the concerns from investors about uncertainty. If we miss the boat, it means another full circle to take a new decision.”