Shale gas reforms send Total into crisis mode

摘要

The future of all shale gas explorationprojects, which are still waiting on an officialgreenlight, has been blocked by a SupremeCourt decision to suspend the latest wave ofamendments added to South Africa’s hydrocarbonslegislation in 2015. These provisionsin question concern environmental mattersand in particular cover shale gas exploration,the type of reserves that Shell and FalconOil & Gas were planning to develop in theKaroo region to the west. More importantly,the South African judges have ruled that theministry of mines, now merged with theministry of energy and headed by the secondin command of the ruling ANC party, GwedeMantashe, does not have the jurisdiction torule over environmental matters. Accordingto our sources, the court’s decision and theminister’s unionist past have oil firms the likesof Total worried that the imminent 2019version of the hydrocarbons code wouldintroduce stricter tax laws and tighter regulations.The French major has been jitteryever since making its offshore gas discoveryin February, worried that the government willhike up taxes ( AEI 835).