South Africa imposes licensing restrictions

Temporary restrictions on oil and gas licensing are causing confusion, but should help reform the licensing system in the long run

A moratorium on new applications for petroleum and exploration rights in South Africa has surprised the industry. But the government says it's necessary in order to overhaul the unsatisfactory licensing framework. On 28 June, Petroleum Agency South Africa, the state regulator, published a statement signed by mineral resources minister Gwede Mantashe. It said the granting of new technical cooperation permits, and exploration and production rights would be restricted until the publication of a fresh invitation for applications. The statement added that the restriction was part of a strategy to improve the licensing system to fast-track exploration, but gave little further explanation. The mora