Petroleum and Other Minerals Development Act, 1960

Petroleum leases.

13.—(1) If, in the opinion of the Minister, it is in the public interest that petroleum under specified land should be granted by way of lease to any person, the Minister may demise such petroleum to that person by way of lease (in this Part referred to as a petroleum lease) for such term as the Minister thinks proper.

(2) The following provisions shall apply in relation to every petroleum lease—

(a) such lease shall be made subject to the payment to the Minister of such moneys, whether by way of fine or preliminary payment or by way of rent (including a royalty rent) or by any or all of such ways as the Minister, with the concurrence of the Minister for Finance, shall think proper and shall agree upon with the lessee;

(b) such lease shall contain such (if any) covenants, conditions and subsidiary agreements on the part of the Minister or of the lessee as the Minister shall consider proper or desirable in the public interest and shall agree upon with the lessee;

(c) such lease may contain a clause providing for the renewal or successive renewals thereof, either unconditionally or subject to such conditions as shall be stated in such lease;

(d) the Minister for Finance shall be a party to such lease.