Petroleum and Other Minerals Development Act, 1960

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Exploration licences.

8.—(1) The Minister may grant to any person such licence (in this Part referred to as an exploration licence) as is authorised by this section.

(2) Every exploration licence shall be granted upon such terms and conditions and in respect of such areas as the Minister thinks fit and specifies therein.

(3) On the granting of the exploration licence the licensee shall pay to the Minister such consideration therefor as the Minister, with the concurrence of the Minister for Finance, may determine.

(4) Every exploration licence shall be expressed and operate to vest in the licensee the exclusive right of searching for petroleum in the area to which the licence extends.

(5) (a) An exploration licence shall not confer on the licensee any right to enter on land.

(b) Paragraph (a) of this subsection shall not be construed as preventing the licensee under an exploration licence from entering on land with the consent of the owner of the surface of that land.

(6) Every exploration licence shall contain an indemnity clause whereby the licensee indemnifies the Minister against any claim arising out of the exercise by the licensee of his rights under the licence.

(7) In this section “searching for petroleum” means the doing by the licensee under an exploration licence of all such things as are in his opinion necessary or desirable for the purpose of ascertaining the character, extent or value of the petroleum in the area to which the licence extends and, in particular and without prejudice to the generality of the foregoing power, includes exploring for petroleum by using geological, geophysical, geochemical and topographic examination, making borings, sinking pits, removing water from old workings and taking and removing reasonable quantities of petroleum and other minerals for analysis, test, trial or experiment.