Development and production period

(1) The development and production period shall start from the date of declaration of the commercial discovery. The initial term of development and production period for each field shall be for twenty-five (25) years. (2) A contractor may, not later than one (1) year prior to the expiration of the then current development and production period, apply to the Minister for an extension to the initial term referred to in subregulation (1) of this regulation. (3) An application for an extension shall be made in writing to the Minister and shall be accompanied by16 Petroleum (a) a complete and up-to-date detailed report on the total production, sale and other disposal of petroleum from the field(s); (b) a complete and up-to-date detailed report on the actual revenues generated, royalties, taxes and other fees paid to the Government; (c) a detailed forecast of production rates, reserve estimates, economic feasibility, number of years for which the extension is applied for; and (d) such other matters as may be required under the contract or as the Minister may reasonably require. (4) The Minister shall grant an extension where– (a) the contractor has fulfilled all his obligations under the current development and production period; and (b) the proposals accompanying the application pursuant to subregulation (3)(c) of this regulation are consistent with his commitments to continue production.