s.6Exploration licence, petroleum agreements, etc.
6
Section 6Part 0 —

Exploration licence, petroleum agreements, etc.

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The Governor may issue an exploration licence in respect of the whole or any part of the area of land applied for, and an exploration licence may authorise the licensee to explore for petroleum over the whole or any part of the area of land specified therein, but no licence shall be issued in respect of an area of land which has already been covered by a petroleum agreement entered into under subsection (4); and nothing in this section prevents the Governor from issuing, in respect of the same area of land, more than one exploration licence or other exploration licences to other persons.
A licensee shall enjoy the rights and liberty granted under his licence during the continuance thereof in common with other licensees to whom exploration licences, in respect of the same area, may be issued.
Exploration licences shall be for an initial period not exceeding two years and thereafter may be extended, from time to time, upon an application for the extension thereof made and supported by evidence that the licensee has carried out, during the currency of the licence, exploration work upon a reasonable scale.
The licensee of an exploration licence may, at any time, apply to the Governor for a petroleum agreement in respect of the whole or any part of the area held under his licence and the Governor may enter with such person into a petroleum agreement in respect thereof; and, upon the issue of a petroleum agreement covering such areas or any part thereof, all exploration licences covering them shall determine without the Government being liable to pay any compensation to licensees.
An exploration licence and a petroleum agreement shall be in the form and shall contain the terms and conditions prescribed by paragraph (i) of section 9(1) with such modifications and exclusions and additional clauses covering ancillary matters (including in the case of a petroleum agreement provision for the payment of royalties to the Crown) as the Governor may deem fit.
Completion of agreements and payment of fees in respect thereof are to be made within six months of approval thereof by the Governor unless the Governor extends the time in that behalf.
Nothing in the Petroleum Handling and Storage Law (1996 Revision) shall apply to anything lawfully done, or omitted to be done, under an exploration licence issued, or a petroleum agreement entered into, under this section.

Cross References