Black participation in petroleum industry should be enhanced in bill, MPs advised

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Black participation in petroleum industry should be enhanced in bill, MPs advised
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Exploration costs are likely to exclude the previously disadvantaged, an industry body says

The exorbitant cost of petroleum exploration is likely to exclude black participants unless the Upstream Petroleum Resources Development Bill is amended to allow them a “carried interest”, an industry body said on Friday.

A carried interest frees its holder from bearing the upfront costs of exploration and production that are borne by the holder of the petroleum right. The holder of the carried interest will only contribute to the costs once revenue from production begins to flow...

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