By Wendell Roelf
CAPE TOWN, Oct 29 (Reuters) - South Africa's government aimsto take a 20 percent stake without payment in new gas and oilexploration and production ventures under proposed legislation,the Department of Mineral Resources said on Tuesday.
If the legislation is passed, large sums of money could flowto state coffers if the country begins exploiting its vast shalegas potential, but it could also put off potential investors.
The proposed legislation says the government should get aminimum 20 percent "free carried interest".
"Free carried interest means the interest derived fromholding shares of which the holder enjoys all the rights of ashareholder but has no obligation to subscribe or contributeequity capital for the shares," it says.
The legislation also says the government can increase itsstake to up to 50 percent but it was not immediately clear ifthat would also be free or if the state would fund itsadditional holding.
The law would affect companies such as ExxonMobil and Anadarko who are looking to explore for offshore oiland gas. Shell's inland fracking activities are alsolikely to be hit.
Duncan Clarke, the Johannesburg-based chairman of oilconsultancy Global Pacific & Partners, said the legislation"amounts to de facto nationalisation without due compensation".
He said it "will halt foreign oil companies coming intooffshore South Africa for high-risk exploration ventures, andlikely cause in-place players to rethink their continuity orforward investments".
Africa's largest economy is keen to become moreenergy-independent. The prices of fuel imports are at the mercyof swings in the exchange rate of the volatile rand currency.
South Africa's cabinet signalled earlier this month it waskeen to open the way for shale gas exploration in its vast,semi-arid Karoo region.