CAPE TOWN, March 12 (Reuters) - South Africa's parliamentpassed changes to its main petroleum law on Wednesday, givingthe state a stake of 20 percent in new gas and oil explorationand production ventures, a move industry said would have achilling effect on investment.
The bill also gave the mines minister wide-rangingdiscretionary powers to place certain minerals in a"value-addition" category, which means a portion of theextracted resource would have to be processed domesticallyinstead of exported in raw form.
The haste in which the bill was passed ahead of generalelections in May has alarmed petroleum operators such as Shell, Total and Exxon Mobil, which arelooking to explore in South Africa in the wake of big offshoregas discoveries in neighbouring Mozambique.
"There have been significant changes in recent days, whichwe have not been afforded an opportunity to comment on and whichwe are certain will have a chilling effect on investment ina high risk and capital intensive industry such as ours," theOffshore Petroleum Association of South Africa said in astatement ahead of the bill's passage in parliament.
Among its members are Shell, Anardarko,petrochemical group Sasol and BHP Billiton Petroleum.
In addition to the envisaged 20 percent "free carriedinterest", the government introduced a new clause entitling itto further participation in the form of an acquisition at anagreed price or production-sharing agreements.
In mining, the aim of the bill is to create jobs in acountry with an unemployment rate of around 25 percent and toadd value to its abundant natural resources, which include closeto 80 percent of the world's known platinum reserves.
Producers of designated minerals would have to offer aportion of their production to local processors in prescribedquantities, qualities and timelines at an agreed price.
"We are here to table this bill as one of the mostprogressive steps in improving and contributing to our economicdevelopment," Mineral Resources Minister Susan Shabangu toldparliament.
The Mineral and Petroleum Resources Development AmendmentBill was passed by 226 to 66 votes in the African NationalCongress-dominated national assembly.
It must still be signed into law by President Jacob Zumabefore it becomes effective.