Term of contract

(1) The term of a contract shall be divided into an exploration period and development and production period. (2) The exploration period shall not exceed eight years in duration, Provided that under exceptional circumstances such duration may be extended for such period and upon such terms and conditions as may be specified in a contract. (3) Where no commercial discovery is made during an exploration period, the contract shall terminate on the expiration of the exploration period. (4) Where a commercial discovery is made, the development and production period relating to such discovery, which shall not exceed twenty-five (25) years in duration, shall thereupon commence.