Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)RegulationsAmendment Regulations to the Mineral and Petroleum Resources Development Regulations, 2020Chapter 2 : Mineral and Petroleum, Social and Environmental RegulationsPart 1 : Mineral and Petroleum Regulation36. Production work programme |
| (1) | A production work programme must contain— |
| (a) | the full particulars of the applicant; |
| (b) | a plan contemplated in regulation 2(2), showing the land to which the application relates; |
| (c) | a registered description of the land to which the application relates; |
| (d) | the type of petroleum to be produced; |
| (e) | a comprehensive feasibility study including details of the measured petroleum resource; |
| (f) | technical data detailing the production method to be used; |
| (g) | details in respect of the envisaged production rate, processing, and marketing arrangements; |
| (h) | a financing plan that must contain— |
| (i) | the details and costing of the production technique, technology and production rates applicable to the proposed production operation; |
| (ii) | the details and costing of the technological process applicable to the extraction or preparation of the petroleum to comply with market requirements; |
| (iii) | the details and costing of the technical skills, expertise and associated labour implications required to conduct the proposed production operation; |
| (iv) | the details and costing of regulatory requirements in terms of the Act and other applicable law, relevant to the proposed production operation; |
| (v) | the details regarding other relevant costing, capital expenditure requirements, and expected revenue applicable to the proposed production operation; |
| (vi) | a detailed cash flow forecast and valuation, excluding financing of the proposed production operation, which forecast must clearly indicate how the applicable regulatory costs will be accommodated therein; |
| (vii) | the details regarding the applicant's financial resources or proposed mechanisms to finance the proposed production operation, and the details regarding the impact of such financing arrangements on the cash flow forecast; and |
| (viii) | provision for the execution of the social and labour plan; and |
| (i) | an assessment of the reserves carried out by a competent person approved by the designated agency or the Minister; and |
| (j) | an assessment of the development programme carried out by a competent person approved by the designated agency or Minister. |
| (2) | The production work programme contemplated in subregulation (1) forms part of the production right where such right is granted. |
| (3) | In the case where a holder of an OP26 mining lease wishes to convert the lease into a production right, the holder must, in addition to the information required in terms of item 5 of Schedule II to the Act and required in terms of regulations 34 and 36 include the following information: |
| (a) | A brief history of the production area and operations, as well as an explanation of activities undertaken; |
| (b) | a schedule of reserves and resources classified in terms of the classification rules of the Society of Petroleum Engineers as from the date of conversion; |
| (c) | annualised figures for past expenditure broken down into development costs, production costs and costs pertaining to the rehabilitation and management of environmental impacts; |
| (d) | copies of production reports reflecting relevant data; |
| (e) | data previously compiled but not yet provided to the designated agency; and |
| (f) | a statement reflecting completed . rehabilitation work and uncompleted rehabilitation work. |
| (4) | An undertaking, signed by the applicant, to adhere to the proposals set out in the production work programme. |