Licensing

There are two types of permits and two types of rights which may be issued under the MPRDA:

• Technical Cooperation Permit
  A Technical Cooperation Permit issued in terms of section 77(1) of the MPRDA allows the holder to carry out desktop studies, acquire existing seismic and other data from other sources, including the Agency but does not include any exploration activities.
  The permit is valid for a period of 1 year and is not renewable or transferable.
  
  
• Reconnaissance Permit
  A Reconnaissance Permit issued in terms of section 75(1) of the MPRDA allows the holder to undertake only geological, geophysical or photogeological surveys and any remote sensing techniques.
  The permit is valid for a period of 1 year and is not renewable or transferable.



• Exploration Right
  An Exploration Right issued in terms of section 80 of MPRDA allows the holder to carry out the entire value chain of petroleum exploration such as, acquisition and processing of new geological/geophysical data, reprocessing of existing geological/geophysical data and any other related activity to define a trap to be tested by drilling, logging and testing, including well appraisal activities.
  The right is valid for a period of 3 years, renewable for three two-year term, transferable and can be encumbered by mortgage.
  
  
• Production Right
  A Production Right issued in terms of section 84 of MPRDA allows the holder to conduct any operation, activity or matter that relates to the exploration, appraisal, development and production of petroleum.
  The right is valid for a period of 30 years, renewable for further periods each not exceeding 30years, is transferable and can be encumbered by mortgage.