Exploration period

(1) The exploration period shall comprise– (a) an initial period not exceeding two years in duration; and (b) upon renewal in the prescribed manner, three further periods each not exceeding two years in duration, provided that each period may be further extended to permit the completion of a well which was commenced before the end of such period, and provided further that the final period may be further extended to appraise a discovery of petroleum. In the case of an extension to permit the appraisal of a discovery the extension shall apply to the discovery area only, the contractor shall perform such additional work as the Minister, after consultation with the contractor, may specify and the extension period shall be– (i) one year on land; (ii) up to two years, one year at a time, in waters of up to 200 meter in depth; 13 Petroleum (iii) up to three years, one year at a time, in waters of more than 200 meter in depth. (2) A contractor may, not later than ninety days prior to the expiration of the then current exploration period, apply to the Minister for a renewal of the initial period or of the first or subsequent renewal periods, referred to in subregulation (1) of this regulation. (3) An application for a renewal shall be made in writing to the Minister and shall be accompanied by– (a) Particulars of the work carried out and the amount expended in the contract area during the initial period, or, where the application is for a second or subsequent extension to the initial period, during the preceding period of extension, up to and including the date of application; and (b) proposals concerning the work to be carried out and the amount to be expended during the period of extension for which application is made; and (c) such other matters as may be required under the contract or which the contractor may wish the Minister to consider. (4) The Minister shall grant a renewal where– (a) the contractor has fulfilled all his obligations under the contract for the then current period; and (b) the proposals accompanying the application pursuant to subregulation (2)(b) in respect of work and expenditure for the period of 14 Petroleum extension are consistent with his commitments therefor under the contract.