S.L. 156.1 Art. 8Form of licences and model clauses.

(1) Every licence granted in accordance with the Act shall incorporate clauses specifying the conditions and requirements of the licence, as respectively set out in the Model Prospection

Agreement, the Model Exploration Study Agreement and the Model Production Sharing Contract and in other terms and conditions as may be specified in the notice published in accordance with regulation 4(1) or as may be agreed to by the Minister and the licensee in any particular case: Provided that copies of the model clauses may be obtained from the Director upon application by an entity.

(2) Without prejudice to the generality of the preceding sub-regulation, the terms and conditions of a prospection licence, an exploration licence and an exploration and production licence may in particular provide for the following matters:

(a) the rental fee, if any, to be charged in respect of the block or blocks or area or areas of the licence;

(b) the rates of royalties to be paid, if any, in respect of any petroleum won in the exercise of the rights conferred by the licence, the method of calculation of the amount of royalties and the manner of payment thereof;

(c) the work obligations attached to the licence;

(d) in the case of an exploration and production licence, the sharing of profits between the Government and the licensee derived from the sale or disposal of petroleum won in the exercise of rights conferred by the licence;

(e) in the case of a prospection licence, the revenue derived from the sale of data;

(f) the provision, from time to time, of information by way of returns, reports, maps, samples, data, notices, records of operations or otherwise;

(g) the protection of the environment, the health and safety of the workers and the safety of the installations; and

(h) such other terms and conditions which may be necessary.