Development and production operations

(1) In the event that a discovery of petroleum is made in a contract area which the contractor considers to be commercial, the contractor shall, prior to the commencement of development and production operations, submit to the Minister the following– (a) a description and map of the area containing such discovery which the contractor proposes to delineate as a field defined by reference to the UTM grid; (b) a detailed report accompanied by supporting data and all analyses and interpretations thereof, which demonstrates that the area described in paragraph (a) above contains alone or in conjunction with other areas, as the case may be, a commercial discovery; (c) full information as to the contractor’s current financial status, technical competence and experience; (d) detailed proposals for the construction, establishment and operation of all facilities and services for and incidental to the development, extraction, production, storage, transportation, sale and other disposal of petroleum, and a proposed time table for the commencement of petroleum production; (e) a detailed forecast of capital investment requirements, operating costs and sales revenues and the anticipated type and source of financing; and 15 Petroleum (f) such other matters as may be required under the contract or as the Minister may reasonably require, including, without limitation, an environmental impact statement environmental protection plan. (2) No development and production operations may be commenced by a contractor unless– (a) the proposals of the contractor referred to in subregulation (1) above ensure the most efficient, beneficial and timely use of the petroleum resources concerned, consistent with accepted practices in the international petroleum industry; (b) the contractor has adequate financial resources, technical and industrial competence and experience to effective development and production operations; and (c) the contractor has fulfilled his obligations under the contract and is willing and able to comply with the terms and conditions of the contract thereafter.