By Mike Cohen | From Bloomberg

South Africa may amend draft laws that would give the state the right to buy unspecified stakes in new energy ventures to provide greater certainty to the industry and encourage investment, Mineral Resources Minister Ngoako Ramatlhodi said.

The 2002 Mineral and Petroleum Resources Development Amendment Bill, passed by lawmakers last year, proposed giving the state a free 20 percent stake in all new oil and natural gas projects and enabling it to buy an unspecified additional share at an “agreed price.” Companies including Total SA opposed the provisions, saying they were too vague and would undermine business. President Jacob Zuma declined to sign to the law on the grounds that it may violate the constitution and referred it back to Parliament last month.

“We want investment in oil and gas,” Ramatlhodi told reporters at the Investing in African Mining Indaba in Cape Town Tuesday. While the government wants to retain its right to a 20 percent free stake in energy projects and ensure 10 percent is reserved for black investors, it is looking at capping any additional state interest “so we don’t take control away from private enterprises,” he said.

About 70 percent of South Africa’s crude needs are met through imports, with the balance processed from coal and gas. Last year, the government initiated a project known as Operation Phakisa that aims to boost local production by encouraging companies to drill 30 offshore exploration wells within a decade.

Read more at Bloomberg