Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697743119850.pdf (Guyana)
GUYANA ACT No.

3 of 1986 PETROLEUM (EXPLORATION AND PRODUCTION) ACT 1986 I assent.

Al pl{ v1/ k _. H.D.

H6"YTE, President.

1986-0b-''+ SECTION ARRANGEMENT OF SECTIONS PART I PRELIMINARY 1.

2 Short title, Interpretation.

commencement and application.

PART II ADMINISTRATION 3.

Chief Inspector 4.

Restriction and Inspectors.

of disclosure of information.

!,,f No.

3] 2 LAWS OF GUYANA 5.

6.

7. against Prohibition Indemnity.

Service of documents.

holding licence, etc.

by certain persons.


PART III REGULATION OF PROSPECTING FOR AND PRODUCTION OF PETROLEUM 8.

Regulation of searching for or getting petroleum.

PART IV LICENCES Chapter 1 General to whom licence may be granted.

to grant of licence.

etc.

for licence.

of application for licence, for performance of conditions upon grant on persons with respect 9.

Restriction 10.

Agreement 11.Form of application 12.

Publication 13.

Bond by applicant 14.Notice 15.


Power of Minister of decision of licence.

licence.

16.Form of licence 17.Restriction 18.Directi 19.

Doing of things directed on exercise ons by Minister.

to be done.

on application.

to obtain information from applicant !or and publication of rights of grant of licence.

by licensee.

Chapter 2 Petroleum Prospecting Licence licence.

of petroleum of petroleum for petroleum prospecting prospecting prospecting licence.

licence.

prospecting 20.


Application 21.

G:..-ant 22.

Contents 23.Rights conferred 24.Application 25.

Renewal of petroleum 26.

Term of petroleum 27.

Duties of petroleum prospecting 28.Relinquishment 29.

Exclusion of prospecting area.

area.

of petroleum prospecting licence.

licence.

prospecting of block or blocks from prospecting prospecting by petroleum for renewal licensee.

licence.

licence.
licence.

licence.

A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) 3 15 [No, 3 Chapter 3 Steps after Discovery of petroleum of petroleum of petroleum Di:.covery Discovery Discovery Investigations.

of PetroleUDJ to be notified of potential not of potential to Minister.

commercial commercial interest.

interest.

30.

31.

32.

33 Chapter 4 Petroleum Production Licence production licence.

for petroleum licence.

production on grant or refusal of petroleum production 34.

35.

36.

37.

38.

39.

40.


41.

Application Grant of petroleum Restrictions licence.

Contents Rights Applir,tion Renewal Term of petroleum for renewal of petroleum conferred of petroleum production licence.

production by petroleum licence.

production .

licence of petroleum production licence.

production licence.

Chapter 5 of Licence Cancellation Cancellation.

Force majeure.

42 43. and Force Majeure Chapter 6 Unit Development 44.Unit development.
PART V FINANCIAL on 1,etroleum on disposal for compliance 45.Royalty 46.Prohibition 47.Guarantee for late payments.

48.

Penalty 49.Remission of royalty, etc.

50.Recovery of royalty .

obtained of petroleum.

under licence.

with Act and licence.

No.

3] LAWS OF GUYANA [A.D. 1986 4 PART VI MODIFICATION OF TAX LAWS 51.

Order to modify tax laws in respect of licensee.

PART VII RESTRICTION ON RIGHTS OF LICENSEE AND SURF ACE RIGHTS 52.

53.

54.

55.

56.

57.

58.


Restriction of rights on exercise Drilling etc.

near railway, Avoidance of inter:erence etc.

Right to graze stock, Compensation.

Notice of intention Acquisition to commence of land for prospecting in relation to certain lands.

with mining operations, etc.

prospecting or production operations, etc.

operation.

PART VIII or geophysical survey.

not to be given without consent of MISCELLANEOUS for geological of body corporate of licensee.
on removal Permission Control Minister.

Power of entry, etc.

Obstruction Restriction Penalty Minister's or production Offence Orders of forfeiture of licensee Obligation to give effect Directions power to obtain committed for giving operations.

59.

60.

61.

62.

63.

64.

65.

66.

67.

68.

69. by body corporate.

on conviction to indemnify to treaty, State.

etc.

of petroleum.

etc.

relating false information, information to prospecting for certain offences.
PART IX REGULATIONS 70.Power to make regulations.

PART X REPEAL 71.Repeal.

5 17 A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No, 3 AN ACT to make provision tion of petroleum, and for matters to prospecting connected therewith .

_for and produc­ with respect Enacted by the Parliament of Guyana :- A.D. 1986 PART I PRELIMINARY 1.
(1) This Act may be cited as the Petroleum sh::irt title, (Exploration and Production) date as the Minister on such :cnf Act 1986 and shall come into operation an;t e may, by order, appoint.

application.

(2)This Act applies servation condition tinental and management in land in Guyana, shelf and exclusive to the exploration, of petroleum including exploitation, con­ in its natural sea, con­ existing the territorial economic zone of Guyana.

2, (1) In this Act - Interpre­ tation.


(a)"block" means a block constituted under the a part of a block Regulations, so constituted; and includes (b)"body corporate" means a company or a cor­ poration; (c)"company" has the same meaning as in the Act; Companies cap.
B9:oi (d)"condition" limitation includes and stipulation; any term, prohibition, (e)"corporation" means a corporate body incorpor­ ated in or outside a company; include Guyana, but does not (f)"discovery block", in relation to a prospecting area, means a block in the prospecting area comprising as the geological feature, !

8 6 No.
3] LAWS OF GUYANA [A.D. 1986 outlined physical leum is located; geological by the relevant or geo­ of petro- data, in which a discovery (g)''discoVe;y of p:;troleum" not previously p2tr0Ieum, existed, recoverable which can be measured petroleum industry testing means a discovery known to have in a flow at the surface oi by conventional methods; means the perforation of the earth's trench­ than by pitting, the hole 1s whether shaft, or horizontal, (h)"drilling" surfac::\ otherwise ing or sinking a vertical, inclined all operations of the sides of the hole or preventing hole from becoming filled materials of wellheads, operations and includes the collapse the by extraneous water) and the filling and any to the foregoing; coring and logging, for preventing incidental (including (i)"exploration for petroleum" means exploration for the purpose and includes geochem'cal appraisal surveys, drilling; pstroleum of discovering and and exploration geophysical geological, drilling (j)"good oilfield that are generally and efficient ing for petroleum operations practices" means all those things as good, sa�e accepted on of prospect- in the carrying or, as the case may be, for the production of petroleum; (k)"holder", in relation to a licence, means the is granted and, to a person joint­ is granted person to whom the licence where a licence ly with others, persons ed, and includes licence transferred; means every one of the is jointly every person to whom the therein to whom the licence or an interest grant­ is lawfully (1)'·in default'' means in breach of any provision of this Act or of any condition any provision any direction of a petroleum given by the Minister; of a licence, or agreement A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No- 3 7 (m) "Inspector" Inspector means a person designated as Chief 3; under section or as Inspector (n) "land" includes land beneath bed, and the subsoil sea-bed; water and the sea­ of such land and the (o) "licence" means a petroleum or a petroleum as the context :production requires;
 prospecting or both, licence, licence "licensee" means the holder of a licence; (p) (q) means - "petroleum" (i)any naturally occurring whether in a gaseous, liquid hydrocarbons, or solid state; (ii) any naturally whether of hydro­ or in a gaseous, liquid mixture occurring carbons, solid state; or (iii)any naturally occurring mixture of one or more hydrocarbons, liquid or solid state) stance, (whether and any other sub­ in a gaseous, any petroleum and includes graph (i), (ii) or (iii) a natural shale or any substance from coal or shale; reservoir, as defined that has been returned to coal, but does not include by para­ that may be extracted (r) "petroleum respect 1 O; in section agreement" means an agreement of any of the matters referred in to (s) "petroleum reservoir" occur­ means a naturally ring discrete accumulation of petroleum; (t) "prescribed" means prescribed by regulations made by the Minister; (u) "production area" means the area, constituted in relation licence to which has been production by a block or blocks, a petroleum grantedi 20 8 No.
3J LAWS OF GUY ANA (A.D. 1986 (v)"production operations" means operations carried with, the produc- out for, or in connection tion of petroleum; (w)"prospecting area" means the area, constituted in relation licence to which a has been prospecting by a block or blocks, petroleum granted; (x)"prospecting operations" ried out for, or in connection with, ex­ for petroleum; ploration means operations car­ (y)''the Regulations" under this Act; means the regulations made (zl ·'well" means a hole in land made by drilling in the course of prospecting operations, but does not include shot hole.
or production a seismic (2)In this Act, a reference to - (a)"Guyana" includes a re:erence sea, the continental shelf, economic termined zone, of Guyana as lawfully from time to time; to the territorial ve and the exclusi de (b)a year of the term of a licence to a period of three hun­ to be a reference dred and sixty five days commencing on the date from, and including, licence that date; has e:fect or any anniversary shall be deemed which the of (c)the conditions of a licence be a reference which the licence from time to time; shall be deemed to to to the condit:ons is granted, subject as modified td) the s11rrnnrler nf a licence, to any in relation shall be deemed, as the to the requires, to be a reference block or blocks, context relinquishment, licence, prospecting under section 28(1), or blocks from a prospecting by the holder of a petroleum of the block or blocks exclusion of the block area under A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No-3 9 29; or cancellation section production b10cks, the licence, on the application under section of a petroleum to the block or of the holder 42 (6); of licence in relation (e)cancellation to any of a licence, in relation shall be deemed to include that a licence to a direction block or blocks, a reference shall cease to have ef :ect in respect block or blocks, include a petroleum to any block or blocks licence under section a reference production but shall not be deemed to of in relation 42(6).
to the cancellation of that Every notice under this Act shall be given in writing.

(3) PART II ADMINISTRATION may, for the purposes 3.

The Minister in the Ga:zette of the Guyana Geology and designate of that Commission, of this Act, by Chief or any em-��!ec�� and Mines Commiss:on as Chief or such number of public officers as may be considered notification ployee Inspector employees for ,he purposes of this Act, as Inspectors.

designate officer a public necessary spectors.

4.


(1) Subject in a report or information a licensee a public Mines Commission shall be disclosed o:ficer or an emp:oyee to subsection submitted to any person (2)Nothing the disclosure · .. nere of information is made - the disclosure except in subsection w:thout (2), no information furnished, R�strtcuon , pursuant to this Act by �£osu�·:· of who is not a Minister, mform.ation.

and of the Guyana Geology with the consent of the licensee.
(1) shall be deemed to prevent the consent of a licensee, (a)after the licence the land to which the information has ceased to have effect over relates; (b)for, or in connection with, the administration of this Act; (c)for the purposes with, any of, or in connection legal proceedings; (d)to any consultant to the Government and Mines Commission or the for the the performance by the consul­ of any functions under the Guyana Geology purpose consultant tancy arrangement; of facilitating 22 10 LAWS OF G:7\/,1\JA [A.D. H:86 (e)for, or in con!1ection by in respect of the State o: statistics, with, the preparation or production operations relating or on behalf of pr,�sp:::cting to petrolGum; (f)for, er i:1 co:mection with, the determination oi any E�bility to make any pay­ ments t'.)
the State or the Government; o• the l;rensee (g)for, or in co:nnec:ion w�th, any matter or pm po::;;; spc:::,ified in a petroleum agreem:mt.

(3)Where a licensee the r:qbt of the license·,, (orm�t,0·1 Gb01,t shall be subject the licen.ce in C:at r:::sp22t spe:::'ficd pro',p:-c1il1',: agreement is a party to a petroleum m­ or agents to disclose under or limitations or production to any restrictions in the a:zreemcnt.

operations hie.

: serv[!n'.


:s (4) Any person who discloses information in co11traven­ to a be liable on summary conviction, for three and imprisonment dollars shall, tion of this section fine of twenty-five thousand years.

(5)In proceedirn!s on a prosecution for an offence under this section.

pcTson F:�ves thst th:) informc1L prosecution known to the public.

it shall be suficien on disclosed, rel2,tes, was, without that and to which the disclosure, generally t defence if the accused 5.
(1) In this section - Prohibition a::��i.n5t holding licence, et-.:.

by certain persons, (D)"msmber of the person, means - fomily", in relation to a relevant (i)the husband or wife, or reputed hT�hand or wi'.

'e; and (ii)the son or dau7,hter minor), of the relevant born in or outside person; whether being a (in either case wedlock, (b) nerson" "relevcint ernmrnt 0r a member or employee Geology and Mines Commission.
means an officer of the Gov­ of the Guyana (2) No relevant capacity, and in his name or in the name of any member of his family, acc:J.'

.. dre, hold c,r attempt in his personal p�rson shall, to acquire or hold - A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No.

3 11 (a)a licence or an interest in a licence; or (b)a share in a body corporate which is entitled undsr this i\ct to carry on prospecting duction or pro· in Guyana.
for petroleum operations who contravenes (3)Any person summary conviction, and imprisonment acquired in a licence or share shall be forfeited to a fine of ten thousand for one year and where such person has a licence, of that subsection the licence, or share in a body corporate, in contravention subsection to the State.
be liable (2) shall, interest interest dollars on (4)In proceedings of acquiring on a prosecution a licence or holding or a share in a body corporate, (2), it shall be sufficient defence under this section or interest in contravention if the accused in of for the offence a licence, subsection person proves interest by operation in licence of law and that as after the licence, or share interest (a)that the licence, was acquired soon as is possible in licence been disposed sary to dispose tinuing to be, taken by him; or or share was acquired by him it has of or all reasonable steps neces· of it have been, and are con· (b)that - {i) the licence, acquired son; or interest in licence before he became a relevant or share was per­ (ii)the share was acquired before became entitled the bod} under this Act or production corporate to carry on prospecting in Guyana, operations for petroleum after he b�came a person or after the body corporate and that as soon as possible relevant became so entitled, licence, to disposed dispose or share have been, and are continuing by him.
as the case may be, the or share has been steps necessary in licence to be, taken interest in licence of or all reasonable of the licence, interest 6.

(1) No public or employee logy and Mines Comission, shall be liable of the Guyana Geo-Indemnity.

done or for anything officer, 24 No.

3] 12 LAWS OF GUYANA [A.D. Hl86 purported the purpose, him by or under this Act.
to be done by him in �ood faith in the course, or for on out by him of any function of carrying conferred (2)In this section a reference to to anything a reference anything omitted to be done shall be deemed to include done.

Service of documents.

7.
(1) A notice or other document required or permitted to be served on, or given to, a person by or under this Act, may be served or given - (a)in the case of an ir:dividu�l by serv:ng it personally (other than the upon the in­ it by post to him at his or by sern:ling Minister), dividual usual, or last known, place of abode or business; (b)in th2 case of the Minister, in the manner pre scribed; (c)in the case of a body corporate - (i)by leaving office of the body corporate; it at the r2gistered or principal (ii)by sending it by post to the body corporate at the re,ist2rcd body corporate; or principal or office of the (iii)by delivering perfcrmin � the functions at any oHice of the body corporate.
or person of the secretary, it to the secretary, (1) (c), the principal office outside Guyana, be its principal office wJhin Guyana.

(2)For the purposes of a body corporate, oI s:.�bse'.

:tion incorporated shall (3)Where an ind;vidual hns more than one place of abode or business, on, or given to, the places.

a notice er other cbcument individua1 under this section may be served at any of those PART HI REGULATION OF PROSPEC'l'l!l'JG F1YR AND PROJDUCTION OF PETROLEUM rrcgulation 8.
(1) On and after the commencement ,,f search111g h 11 "h f gemng person s .a s for or vetroleum.

petroleum ear_, or m, or ge rom, any an m uyana of this Act, no 1 d .

G except - t f .

13 25 A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No-3 (a)under and in accordance with a licence granted by the Minister under this Act; or (b)under and in accordance under the Petroleum commencement of this Act.

with a licence granted Act before the cap.

65:0S.


(Production) summary conviction, dollars (2)Any person who contravenes be liable and imprisonment for three years.

on subsection (1) shall, to a fine of twenty-five thousand PART IV LICENCES Chapter I General 9 (1) No licence shall be granted - a O an Ill lVl ua , un ess e 1S a Cl IZen d" "d l 1 ( ) t .

ana; or Restriction on persOilll h .

·t· f G to whom may O UY· licence be granted.


(b)to a body of persons, unless it is - (i) a company; or (ii)a corporation.

(2)A licence may be granted to two or more persons associated one of them is qualified together if each in any form of joint arrangement, to hold the licence under subsection �1).

(3)Where at any time, a licensee is constituted the obligations or more persons, by the licensee tions, but without prejudice may exist between all or any of them.
under this Act shall be joint and several to any right of contribution to be observed of two and performed obliga.

which 10.

The Minister may enter into an agreement with this Act) with any person with respect (not in-!ft1:ei:1e«:i��ct to all to o-ant ot consistent or �ny of the following matters, namely - licence.

No.
No.

3] LAWS OF GUYANA [A.D. 1986 14 (a)the grant to that person or to any other person (including identified any body corporate in the agreement, of a licence; to be formed), (b)the conditions or renewed; granted to be included in the licence as (c)the procedure to be followed while exercising him by or under this Act and the manner m which the discretion shall be exercised; any discretion by the Minister conferred up�n (d)any matter incidental to or connected with the foregoing.
Form of ap· plication for licence, etc.

11.

An application under this Act for a licence - (a)shall be made in accordance with the Regula- tions; (b)shall be made in such form and shall state such particulars as may be prescribed; (c)shall be made to the Minister; (d) may be withdrawn notice of withdrawal by the applicant to the Minister; by g1vmg and (e) shall be accompanied by such fees as may be prescribed.

Publication of appli· cation for licence.

12.


The Minister for the grant of a licence, or both of the following, namely - may, by notice require served on an applicant the applicant to do either (a) publish details and in the manner, of his application specified at the time or in the notice; times, and (b)give details of his application and in the manner, specified to the persons, in the notice.

13.

The Minister of a licence may require to execute fnr the pnforin.
::mce :i;\1ca'Z or renewal for per· Minist"r, ����ttri� s upo of cence, for the execution a grant thereof 01 cant of the conditions of the licence upon grant or renewal or to make arrangements.

of such a bf nd .. satisfactory to the Minister, an applicant a bond, satisfactory for the grant to the and the observance by the appli AD.

1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No, 3 15 14.
(1) The Mi?ister shall cause .an applicant to be noufled of the dec1s1on f�i: the grant���T on theavvuc 0:f on atlon .

or renewal of a llcence application licence, details shall be granted giving, where it is proposed subject of the conditions or renewed.
to grant or renew the to which the licence (2)Where an applicant licence - for the grant or renewal of a (a)notifies within a period the Minister, in writing, of sixty days of the date of the notification under subsection period as the Minister cepts the conditions the licence, to be issued or renewed on those conditions; (1), or within such further may allow, that he ac­ of the grant or renewal of shall cause the licence the Minister (b)faiis so to notify the Minister period, said period or further be, the application shall lapse.
within the afore­ as the case may 15.

(1) The Minister for the grant of a licence, the Minister f. d .

th t' Ie Ill e no ICe, - may, by notice served on an applicant Po�r ot to to ��tafnertn­ to furnish on time as is speci-fformat1 pll- P rom a cant for licence.
within such reasonable the applicant in writing, require, (a)such further information tion as may be specified relevant in the notice; to the applica­ and is a or any of the applicants, as may be such information (b)if the applicant, body corporate, specified to ascertain (whether of the affairs a corporat resident directly outside Guyana.
in the notice to enable the Minister to what extent the controlling power or indirectly) of the body corporate in the direction is vested in ion, or an individual or individuals, to comply with the requirements shall lapse.
subsection (2)Where an applicant (1), the application for the grant ot a licence fails of a notice served on him under (3)To enable him to dispose of an application for the grant of a licence, the Minister may - (a)cause such investigations, negotiations or consul­ on as the Minister tations considers necessary; and to be made or carried No.

3] LAWS OF GUYANA [A.O.


1986 16 (b)by notice the require served on the applicant within such to the Minister, to furnish in the notice, time as is specified applicant reasonable with such proposals, addition as the Minister to any proposals by way of alteration or in the application, specifies in the notice.

!nd 16.
!nd 16.

(1) A licence :i:::::e 0 pubUcatlon may be prescribed of grant of licence, shall be in accordance with such form as (2)The Minister, shall, as soon as may be practicable after a licence be published and the situation has been granted.

has been granted, stating in the Ga.zette of the land in respect cause notice of that fact to the name of the license e of which the licence Restriction on exercise of rtghts b:t ]lcensee.

17.
17.

Nothing in this Act shall be construed - (a)where the doing of any act is prohibited by any to a licensee law, as authorising other written do that act; or (b)where the doing of any act is regulated by any to a licensee law, as authorising other written do that act - (i)otherwise than in accordance ten law and any authority and (ii), subparagraph with that writ- referred to m (ii)without first obtaining required any authority under that written (how­ ever described) law for the doing of the act.
Dire�0:Ster.

18.
(1) Subject b:v 1 notice served to the Regulations, may, by the Minister on a licensee, with good oilfield to which regulations give to the licensee practices, may be made under section 70 and as to any matter with any direction, shall be complied with within the time speci­ which the shall be complied by the Minister or, where the time within with is not speci�ied speed and as often as the occasion by the Minister, for such consistent respect any such direction fied therefor direction with all convenient compliance arises.
cause, in accordance (2)A licensee to comply with any direction shall, with that subsection, who fails or neglects, reasonable (1), conviction, given under subsection on summary without 17 29 A.D. 1986) PETROLEUM (EXPLORATION AND PRODUCTION) lNo.

3 be liable for two years.

to a fine of ten thousand dollars and imprisonment • 19.
Where a licensee fails or neglects who failed to comply with the direct10n given to him under section a direction the licensee under section been convicted be done all or any of the things done, and the costs and expenses recoverable due to the State may be recovered.

by the Minister 18(2), the Minister may cause to required incurred by the direction in doing so shall be to be in the same manner as revenues to comply with Pi�:g� 18, notwithstanding of that directed to may have be done.
Chapter 2 Petroleum Prospecting Licence 20.

(1) Subject to this Act, any person may make an applica etro- prospecting licence tion for the grant of a petroleum of any block or blocks • -Application in respect ���J prospecting licence.
of subsection (1), (2)Without prejudice to the provisions - in the Gazette, the Minister may, by notice (a)invite applications prospecting licence blocks specified in the notice; in respect for the grant of the block or of a petroleum (b)specify the period within which an application may be made; and (c)specify the conditions subject to which any ap­ plication may be made.

21.
21.

(1) Subject to this Act, on application duly made, the Grant of may grant on such conditions or E;������:a as he determines, of licence.

in respect ing licence a petroleum prospect Minister refuse to grant, any block or blocks.

(2)A petroleum in respect to an applicant application already a licence granted.

prospecting licence shall not be granted for the grant of the licence of a block which is, at the time the in is made, comprised 22.
(1) A petroleum prospecting - licence (a)shall - of Contents petroleum prospecting licence.

(i)state the date of the grant of the licence; 30 No.
3] 18 LAWS OF GUY ANA (ii)identify licence the block or blocks to which the relates; and (iii)state the conditions is granted, licence necessary agreement for the licence; entered and to give effect subject includ:ng to which the coEditions to any petroleum into by the applicant (b)may contain such other matters as the Minister may determimi for the purposes (2)or (3) or for any other purpose of subsection of this Act.
with respect (2)There may be included licence provision any agency therco.i acquir2 in any venture carried idei1u,iea Gil stipul:.

:.tcd term::;, for the production in a petroleum to the exercise ia the licence, or on Lrms to be a::,;r2ed, by the State, 0£ an option to an interest prospecting or on in any block or blocks to which the licence (3) The Minister may specify in a petroleum an :nitial six mon',hs period not exceeding relates.
prospecting as the prepara­ of petroleum which may be licence tion period to enable the licensee paration to carry on prospecting to make the necessary pre­ operations.

Rights con· ferrcd by petroleum prospec�ing licence.

licence, prospecting on the licensee, in the licence 23.

A petroleum in :orce, confers the conditions is otherwise right to explore and the ri,c,:ht to carry on such operations works as are necessary area to which the licence the exclusive specified relates.
subject, subject wh;le it remains to this Act and to or to which the licence for that purpose, in the prospecting and execute such for petroleum, Application 24.

(1) Subject for renewal prospectinl!

licence o of petroleum pr.-.,11cca.og but not more than twice, licence.

to this Act, a person who holds a petroleum may apply for the renewal of the Jirnnce -� , in accordance with the Regulations.
(2)Subject blocks in respect a petroleum the number which is one-half in respect prospecting licence of wh:ch - (a)the licence to a petroleum of which an appEcation agreement, the number of of for the renewal may be made shall not exceed in total of the number of blocks was granted, where the application is for the first renewal of the licence; or (b)the licence was first renewed, tion is for the second renewal where the applica­ of the licence.

19 31 A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No.
3 (3)In determining, for the purposes of this section, the of which a petroleum prospecting or first renewed, there shall not be taken block excluded from the prospecting block 31(3) or 32(1) and any discovery area at the date on which the any discovery number of blocks in respect licence was granted into account area pursuant subsisting is made.
the renewal application for (4)The blocks in respect of a petroleum in the prospecting to section the renewal subsection as to ensure that they constitute prospecting to a petroleum agreement, a continuous area.

is made under be such (1) shall, subject licence of which an application foI duly made Renewal .

petroleum prospec tiJ18 on licence.

of the licence to the application not exceeding to subsection t (2), on application of of a pe roleum prospectmg 24 for the renewal the Minister 25.
(1) Subject d .

un er section licence, such conditions and the requirements three years on each occasion, Provided shall grant a renewal to give effect as are necessary by the Minister agreement, of this Act, for such period, as may be specified to a petroleum shall not be renewed of such number of blocks as is in that, subject licence m prospecting (a)in respect excess plication licence (b)in respect of blocks which do not constitute area.
prospecting or may be made under section 24(2); of the number in respect of a petroleum continuous for renewal of which an ap· : a a - petroleu (2)Subject to grant a renewal licensee special renewal to subsection of a petroleum is in default unless circumstances notwithstanding the Minister exist which justify if the is of the opinion of the the granting that (3), the Minister shall refuse prospecting licence the default.
shall not refuse under subsection (3)The Minister to grant the renewal plication being duly made therefor under section of a petroleum prospecting licence 24 - (2) on ap­ (a)unless he has given to the applicant of notice to do so - his intention (i)giving in the notice particulars of the ground for the intended refusal; and a reasonable time (ii)specifying in the notice within which the applicant the default propriate or make representations to the default; for remedying in relation may take ap­ action and 32 No.
3] 20 LAWS OF GUY ANA [A.D. 198ti (b)if the applicant has within the time allowed the default or, where the de- therefor remedied fault cannot be remedied, in respect thereof, has made representation fault and the Minister there is no default reasons plicant for the failure to remedy the default.

paid to the Minister,• or to the de- in relation that either is satisfied or that there are adequate on the part of the ap- adequate compensation, Term of petroleum prospecting licence.

26.
(1) Subject to the other provisions of this section, unless sooner determined petroleum surrender subsection prospecting or cancellation continue in force - licence, a by of this under this Act, shall by virtue period (a)for any preparation 22(3); to section pursuant specified in the licence (b)for the period stipulated not four years next after the date of the in the licence, exceeding grant of the licence period, or, if there is a preparation next after the expir�tion of that period; (c)for any period, each occasion, pursuant 25; and to section not exceeding three years on for which the licence is renewed (d)for any period added pursuant to the term of the licence.
to section 43l3) • (2)Where a petroleum prospecting shall, wise cease to be in force, licence unless tion under this Act, continue to which the licence re:ates, made for the grant of - then, by virtue sooner determined in force in respect if an appl�cation has been duly of any block licence would other the of this subsection, or cancella by surrender (a)a renewal of the petroleum prospecting licence; or licence production in relation to dealt is finally until the application to renew, the or, as the case (b)a petroleum that block, with by the renewal petroleum prospectine: may be, by the grant of, or refusal the petroleum lapses.
app!ication of, or refusal licence, or until the to grant, production licence, A.D. 1986] PETROLEUM (EXPLORATlON AND PRODUCT/ON) {No.
3 21 (3) Where a petroleum prospecting licence would other­ wise cease to be in force in respect of any block or blocks, in a prospecting area, wherein petroleum has been discovered, then, by virtue of this subsection, the licence shall, unless sooner determined by surrender or cancellation under this Act, con­ tinue in force in respect of that discovery block or blocks until a notice is served pursuant to section 31(1), or until the expiry of the period of thirty days referred to in that section, which­ ever first occurs .
(4) Where a notice given under section 31(1) states that a discovery of petroleum in any block or blocks in a prospecting area is, in the opinion of the licensee, of potential commercial interest and the petroleum prospecting licence relating to the discovery block or blocks would otherwise cease to be in force, then, by virtue of this subsection, the licence shall, unless sooner determined by surrender or· cancellation under this Act, continue in force in respect of the discovery block or blocks.
until the expiry of - (a) (b) the period of two years specified in section 31(2); and any further period allowed by the Minister under the proviso to section 31(2).

27.

(1) · Subject to subsections (3) and (4), the holder of aDut1es of petroleum prospecting licence shall in, or in relation,.

to, the:���1::�g prospecting area, meet the requirements, with respect to worklicenJe�.

and expenditure, - stipulated in the licence; and (a) (b).

of each programme submitted pursuant to sub­ section (2).
(2) The holder of a petroleum prospecting licence shall, not later than one month before the anniversary in any year of .the date of the grant of the licence, submit to the Minister in , detail an adequate programme with respect to work and ex­ .

penditure to be carried out or made in the year of the term of the licence immediately following the anniversary concerned.

.

.
.

.

(3) The Minister may, on application made to him in _writing by the holder of a petroleum prospecting licence, by jnstrument in writing amend or suspend any obligation arising under subsection (1), either conditionally or unconditionally.

(4) The holder of a petroleum prospecting licence may, for good cause, amend the , details of any programme.

of work and expenditure which he is required under subsection (1) (b) to carry out or make: • 34 22 No.

3] LAWS OF GUY ANA JA.D.


1986 erovided tl1at - ' :i, the licensee shall forthwith 6ivc' nut ice in writing giving to the Minister in the notice details amendment; and of any such amendment, of and the reason for the ii) 1 no such amendment shall have effect �0 as to of the overall to be car­ of work and expenditure reduce the minimum requirements programme ried out or made during the term of the petro­ licence.
leum prospcctin:::; (51 Where the holder ol a petroleum prospecting stipulated or of each programme (2), then, without fails to carry out any part of the requirement work and expenditure licence, section may be invoked the relevant the purpose the State by the licensee provision of determining the liquidated by the Minister of the licence prejudice submitted on account in respect in the petroleum by him pursuant to suh­ to any other right which (if any) shall apply for of such failure.
licence to with respect prospecting of that failure, damages payable to (61 The requirement in subsection (2) with respect to an adequate programme with respect shall be deemed to have been met in any case where the pro­ gramme submitted the requirements contained in a petroleum pursuant to that subsection (if any) with respect is consistent to work and expenditure to work and expenditure agreement.
with (7)For the purposes of subsection (2), where any pre­ prospecting paration period is specified licence pursuant 22(3), the date of the grant of the licence to section shall be deemed to be the date immerloately followin� piration in a petroleum of that period.

the ex­ Relinquish­ ment of prospecting area.

28.

(lJ The holder of a petroleum at any time when the licence is in force.

not less than three months previous do so.


relinquish identified may licence to the Minister of his intention notice any block or blocks in the prospecting prospecting by giving in the notice.

to area be without of the quished (2)Any relinquishment to any obligation licence (1) shall pursuant to subsection by the holder incurred of the area relin­ in respect prospecting prejudice petroleum prior to the date of the relinquishment.
blocks (3)Subject subsection relinquished under to a petroleum agreement, tl) shall, unless any block01 the Minister A.O.

1986] PETROLEUM (EXPLORATION AND PRODUCTION) 23 35 [No 3 otherwise prospecting directs, area constitutes be such as to ensure that the remaining area.

a continuous (4)Where under this section any block or blocks are relinquished, shall cease to have effect with respect to that block or blocks.

then, the petroleum licence from the date of the relinquishment prospecting concerned 29.
Where a petroleum production licence respect holder the aforesaid specting of a petroleum of any block or blocks in a prospecting �:� shall cease to be part of the pro- prospecting block or blocks in relation licence area.

in :�ua1:rn of is granted, area, to the blocks from to that area, ct.inl Chapter 3 Steps after Discovery of Petroleum 30.

(1) Where a discovery area, the licensee of petroleum to that area - in relation .specting is made in a pro-Discovery o1 to h!tr!�mTec1 to Minister.
(a)shall - (i)forthwith inform the Minister of the dis­ covery; (ii)within a period of thirty date of the discovery, Minister covery; and particulars in writing of the dis­ days from the furnish to the (iii)promptly run tests in respect covery and thereafter the Minister evaluated spect of the discovery; test results and of the dis­ forthwith submit to in re­ (b) shall, subject to subsection (3), take promptly all in the circumstances the quanti­ to the discovery, steps that are reasonable, relating ty of the petroleum to which the· discovery of that reservoir in that part.
is within relates to ascertain in the petroleum or, if part only the prospecting reservoir area, (2)Where petroleum ing area, the Minister on the licensee writing served has been discovered may, from time· to time, by notice in in � prospect.

, direct - the licensee "\:c 3] LAWS OF GUYANA jA.D.
1986 24 (a)to furnish to him, within in the notice, of - particulars the period in writing specified (i) the chemical composition and physical pro­ perties of the petroleum; (ii)the stratigraphical and the discovery; position and depth of (1iil any other matters tuat are specified notice; and to the discovery relating in the by the Minister (b)to do, within the period specified such things as the Minister and specified notice, chemical the petroleum.

composition .
composition .

in .,tbe and physical in the notice, thinks necessary to ascertain the of properties (3)The Minister or partly, either wholly licensee, as are specified from the requirement ally or subject uncondition in the instrument may, by instrument of exemption.

(1) (b), the of subsection to such conditions in writing, exempt 01scover:v �i��ii:f <'ommerc1a1 mterest• has been discovered 01 .

31.
31.

(P Where petroleum of ing area and the licensee to the Minister the licensee of the evaluated that the discovery of the submitted the discovery, of submission notice stating not, in the opinion interest.

has, pursuant evaluated shall, to section test results thirty in a prospect­ 30 (1) (a) (iii), in respect days of the date • results, serve o n the Minister is, or,.
·as the case may be, is of potential licensee, within commercial a of 12)Where a notice served of petroleum of potential of the licensee, that the discovery the opinion may, unless licensee render or cancellation under this Act, years after the date on which such nqtice under section in respect· area or in respect of the -discovery o: any part thereof block or blocks the licence 34(1) for the grant of a petroleum (1) states under subsection in any prospecting area is, in interest, the by sur­ of two is sooner determined commercial a period within is so served, apply production in the prospecting licence : Provided that the Minister may, on application that is of the opinion if the Minister in that be­ half made by the licensee, there are reasona ble grounds allow the licensee writing, for doing so, by instrument m such further time, which in hi� 25 37 A.D. 1986] --------- ---------- PETROLEUM (EXPLORATION AND PRODUCTION) ---------- ------ [No- 3 is reasonable opinion for the grant of a petroleum section.
in the circumstances production of the case, to apply under this sub­ licence (3)If the holder of a petroleum prospecting fails licence (2), or within such licence production in subsection may allow under the proviso in respect in the block or blocks, within the period specified period as the Minister further to apply for a petroleum thereto, of the whole or part of any discovery prospecting area, the Minister is then in force in respect licence blocks, by notice shall cease to have effect case may be, of the discovery the date specified to have effect of the whole or part, as the case may be, of such discovery block or blocks.
and thereupon from the date so specified block or of the discovery that the licence on the licensee, in respect of the whole or part, as the from with effect therein with effect shall cease in respect may, if the petroleum block or blocks the licence direct served prospecting 32.
(1) Where a notice the discovery a prospecting potential of petroleum area is not, in the opinion interest - served under section in any discovery 31(1) states block or blocks of the licensee, that Discovery of 1°t in �� ;�:�::A� of commercial .
intereSt, tr commercial (a)subject block to subsection (2), the Minister may, if prospecting is then m licence discovery of the aforesaid months from a period is served on served on the shall cease to have to such discovery block or there­ from the date specified the licence the petroleum force in respect of twelve within or blocks, the date on which the said notice him, direct in writing by notice licensee effect blocks in, and thereupon effect in respect or blocks and with respect with effect that the licence shall cease to have with effect of the aforesaid discovery block from the date so specified; (b)during the aforesaid period of twelve months, (a) direct­ and during of the aforesaid that during that period the to paragraph shall cease to have effect notwithstanding Minister has not pursuant ed that the licence in respect blocks, 30 (1) (b) the discovery, section aforesaid the discovery commencement section and (2) shall not apply in respect of and any direction 30(2) before the commencement months in respect out before such shall cease to have effect.
and not carried block or discovery of twelve given under period of the of any period thereafter, 38 No.
3] 26 LAWS OF GUYANA [A.D.. 1986 section (2)The Minister (1) (a) unless - shall not give a direction under sub­ (a)he has given to the licensee a notice of his mtention to do so; (bJ he has specified in that notice within tion with respect which the licensee to that notice; and a reasonable may make representa­ time 1c1 on evidence into account licensee, is of potential available any representation he is of the opinion that the discovery to him and after taking commercial interest.
made by the Investiga­ tions.

has served, that a discovery under section 31(1), of petroleum of the licensee, 33.

(1) Where the licensee stating on the Minister may, by notice a notice is, in the opinion the Minister licensee of not less than two years, studies the feasibility assessing operation of an industry discovery block as the Minister or blocks concerned.
thinks appropriate of the construction, for the production and for the purpose of and establishment in the of petroleum to carry out, within a period specified of potential served on the licensee, commercial direct the in the notice such prescribed investigations interest, (2)The licensee shall furnish to the Minister under subsection within (1), such reports, the in the notice period specified analysis carried on the licensee, and data resulting out under this section may require.
from the investigations served as the Minister, and studies by notice Chapter 4 Petroleum Production Licence APPllcatton 34.llJ A licensee for petWieum in force may, within the period i:rie��.

on 31(2) or within such further of two years specified by the period as may be allowed whose petroleum prospecting licence is in section thereto, apply under this subsection under the proviso Minister for the grant of a petroleum any discovery block or blocks spect of any part thereof, shown to contain reservoir.
a petroleum production licence in respect in the prospecting of area, or in re­ can be appraisal, or part of a petroleum which following reservoir (2) Any person, notwithstanding that he does not hold A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) 27 39 [No- 3 prospecting may, on the Minister a petroleum blocks, that person or otherwise a petroleum section of that block or blocks.
reservoir licence in respect being satisfied that a petroleum of any block or on data supplied by or part of reservoir apply under this sub­ licence in respect for the grant of a petroleum production is located therein, (3)An application (1) or (2) under subsection (a)shall be made to the Minister; (b)shall be accompanied by detailed for the construction, the applicant and operation and incidental storage and transportation the proposed of all facilities area; and production to the recovery, of petroleum and services for from processing, proposals by establishment (c)shall be accompanied as may be required by the Regulations.
by such other particulars 35.

(1) Subject to section 36, - (a)where an application 34(1), the Minister production licence as are necessary and the requirements applied of this Act; and �1:�e:'m production licence.

is duly made under section shall grant the petroleum for on such conditions to give effect to the application (b)where an application is duly made under section may grant, on such conditions the Minister 34(2), as the Minister the petroleum determines, or refuse to grant, for.
applied licence production (2)Conditions necessary into by the applicant to give effect to a petroleum for a licence in any licence granted to the applicant under shall be sub­ agreement entered included section (1).

36.
36.

(1) A petroleum therefor production unless - to an applicant licence shall not be granted aeatr1ottoD11 nt ... � (i)the proposals of the applicant and beneficial would ensure the ;�� use of the petro-licence most efficient leum resources concerned; (ii)the applicant and technical has adequate and industrial financial resources and competence No.
3] LAWS OF GUYANA [A.D. 1986 28 experience operations; to carry on effective production (iii)the applicant is able and willing to comply with the conditions to be granted; proposed on which the licence is (iv)the applicant's and training factory; of citizens proposals for the employment of Guyana are satis­ (v)the applicant's procurement within Guyana are satisfactor to the of goods and services y; proposals with respect obtainable (vi)the exercise under section pleted or arrangements Minister of any option given to the State 22(2) has been satisfactorily have been made for that purpose; or satisfactory com­ to the 1vin if the applicant is in default, circumstances the Minister exist which de­ termines justify ing the default.
that special the granting of the licence notwithstand­ 12)The Minister 34(1) for the grant �ection -- 1mless shall not refuse an application of a petroleum production under licence (a)he has given the applicant a notice stating of the ground of the intended date within a reasonable the re­ and also stating particulars fusal, which - (i)the applicant respect of the grounds 1ii) where the applicant may make representation or so stated; in is in default or the pro­ posals made by him require amendment, the applicant may remedy the default amend the proposals; and or lb) the applicant has not, within the date so speci­ fied, - made any representation with the matters with satisfactorily or to in the notice; or otherwise dealt referred 29 41 A.D. 1986] · -- PETROLEUM (EXPLORAT!Ol\' [Nu- 3 AND PRODUCTION) (ii)in the case referred to in paragraph (a) (ii) amend­ the default or suitably remedied ed the proposals.
\3) A petroleum production under section to an applicant is, at the time the application made, comprised than the applicant.

in a licence licence 34(2) in respect shall not be granted of a block which for the grant of the licence is other to a person already granted 37.tl) A petroleum (a)shall - production - licence Contents u1· petroleum production licence.
(i)state the date of the grant of the licence; (ii)identify the block or blocks to which the licence relates; and (iii)state the conditions subject to which the licence is granted; and (b)may contain such other matters as the Minister for the purposes may determine (2)or (3) or for any other purpose of this Act.
of subsection t2) There may be included in a petroleum producti on licence supply in the licence, provision petroleum with respect or petroleum to the duty of the licensee to products, to the extent specified of Guyana.

to meet the requirements licence of petroleum (3)There may be included conditions with respect to the refining, disposal in a petroleum production or sale area.

in the production which may be recovered 38.
A petroleum production force, confers conditions otherwise on the licensee, in the licence rights - specified subject, exclusive subject licence, in fel�� �on- is t�!���� or to which the licence while it remains to this Act and the petrole� on (a)to carry on prospecting tions in the production area; (b)to sell or otherwise dispose opera­ and production of petroleum re­ covered; and (c)to carry on such operations and execute such area as are necessary works in the production No.
3] LAWS OF GUY ANA [A.D. 1986 30 for, or in connection to in paragraph (a) or (b).

with, any matter referre d :;;Pi:,::;.

::i 39. of Petroleumapph·.

in accordance production licence.

the llcence.

• ; but not more than once.

A holder of a petroleum production with the Regulations.

for the licence renewal of may Renewal of petroleum production licence.

to subsections 40.
to subsections 40.

(lJ Subject made under section 1ion licence, such conditions 30 for the renewal may grant a renewal (2) and (3), on application duly of a petroleum nroctnc- on of the licence renewal.
to grant a as he deems fit, or refuse the Minister (2)The Minister shall refuse to grant a renewal of a production liu:mcc F the licensee is in default unless petroleum in the opinion justify of the Minister special circumstanc es exist which the granting of the renewal notwithstanding the default (3)The period for ·which a petroleum production licenc<' may he renewed shall not exceed ten vears.

Term of petroleum production licence.

41.


(lJ A petroleum production licence, or cancellation under this Act, shall by unless sooner deter­ mined by surrender virtue of this subsection, continue in force - (a)for a period of twenty years next after the date of the grant of the licence; for which the licence (b)for any period 40; and under section is renewed (c)for any period added pursuant to the term of the licence.
to section 43(3), thP expiry of the term of a petro­ 121 Notwithstanding the licence by surrender leum production licence, termined in force bv virtue to which the licence for the grant of a renewal until - shall, unless sooner de­ under this Act, continue in respect if an application in respect of the licence of any block has been duly made, of this subsection, relates or cancellation of that block.

(a)the application is finally to grant, dealt with by the grant or the renewal; of, or refusal lapses.
(b)the application A.O.

1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No 3 31 Chapter 5 Cancellation of Licence and F.orce Majeure 42.

(1) Subject to this section and section is in default cancel his licence.
the Minister may, by notice 43, where a licensee served on the licensee, Ca:iceU�tton (2)The Minister shall not, under subsection (1), cancel a licence on the ground of any default - unless (a} the Minister has, by notice served on the licensee, given not less than thirty to cancel intention the licence days notice of the on that ground; has in the notice, (b)the Minister which the licensee able date before submit any representation Minister to consider; specified a reason may, in writing which he wishes the and ( c)the Minister has taken into account - (i)any action taken by the licensee that ground or, where the default remedied, Minister spect thereof to prevent and to remove cannot be to the any offer by the licensee compensation in re· by the licensee grounds: and any action the recurrence of adequate of similar (ii)any representation submitted by the licensee pursuant to the Minister (b).
to paragraph (3)The Minister on the ground that the licensee shall not, under subsection (1), cancel to pay any has failed by him under this Act or the licence to in paragraph (b) of subsection (2), under that subsection, with any additional amount which may if, before and pays the licensee a licence amount payable the date referred specified in a notice the amount, be payable together 48. under section cancel (4)The Minister - his licence may, by notice served on a licensee, (a)if the licensee, being an individual, is - (i)adjudged bankrupt; or 32 LAWS OF GUY ANA _ £A_.D_: 193G ,ji) enters into any agreement composition vantage or with his creditors of any law for the benefit of debtors; or scheme of or takes ad- (bl If, in the case of a licensee being a body cor­ an order is made or a resolution is passed the affairs porate, winding up the winding unless amalgamation the amalgamation, ,;truction of the proposed and the Minister or is for and the '.\linister of the body corporate, of an up is for the purpose to has consented the purpose has been given notict of recon­ reconstruction.
of a petroleum together in any form associated ,5) Subject to the provisions agreement, constitute 14), cancel the licence to one or some only of the persons a licensee, the Minister shall on the occurrence constituting persons, where two or more of joint arrangement, not, under subsection in relation the license ihat subsection licensee be, is or are willing ,md obligations satisfy o, Lile licensee.
e, of an event entitling the Minister if any other person or persons the ::Vlinister the that he or they, as the case may and would be able to carry out the duties so to do under constituting 16)The Minister cancel by rnstru1,i..,,1t '.\•holly (if any) as the Mrniskr may specify or in r0lation to any block or blocks his petroleum shall on the application production of a licensee, licence either in the instrument.
on such conditions (7)On the cancellation o:: a licence, but the cancellation the rights of the shall not shall cease.

thereunder any liability jicensee affect ·jon and any lcg�;.l or continued against him notwithstandin-:; him may lw commenced the cancellaLion incurred pro,..'crJings th:::t hy the licensee of the licence.

might have been commenced before the cancella­ or continued against ,r1'orce roajeure.

43.
43.

11) u1y falur,, of his licence to fulfil any c,n the part of a licensee or to meet any requirement of this Act petrolcllm il'5,ffr�ment shall not be a breach of the licence, as the case may be, to the extent .rondition 11' a this Act or lhe a::;'.

results that the failure or an excepiioual, or from any other cause prescribed a�reement ,his section.
as constituting 1lll , ; cement, from an act of war, hostility, and irresistible natural ,<li,le in the licence insurrection , phenomenon, or petroleum of force rnajeure for the purposes 1_2) \,\ ,1 , , · fails to fulfil licensee ,11 ·1:s !icenct : ,-.

'U;\iSC nf \he occurrence any of the conditions of circumstances of a i\.D.
1986] PETROLEUM (tXPLORATION AND PRODUCTION) lNo- 3 33 45 kind referred giving Minister to in subsection particulars of the failure (1), he shall forthwith the notify and its cause .
(3)Where a licensee under his licence of circumstances of his rights occurrence (1), then such additional shall be added to the term of his licence period, : is prevented from exercising any of the for any 2eriod because to in subsection of a kind referred as may be agreed by the Minister Provided that the Minister the addition licensee could, to him, have exercised standing those rights any such occurrence.
may refuse to agree t(, of any period to the term of the licence if the steps which were open any reasonable during that period notwith­ by taking (4)This section shall not apply in relation to a failure to meet an obligation, payment of royalty, annual charges under a licence or fees.
or this Act, to make any Chapter 6 Unit Development 44, (1) In this section, "unit development", means the co-ordination area, in which part of the reservoir for the recovery on, in any other area in which another part of petroleum being carried in relation to a unit develop­ for ment.

of operations on, or to be carried is located on, of reservoir, petroleum the recovery on, in a production with operations Jr to be carried the same reservoir of petroleum being carried is located.
(2) A holder of a petroleum from time to time, enter into an agreement or in relation or more other licensees for of a petroleum reservoir and shall forthwith the agreement to the Minister for approval.
producti on licence may, with one in writing to the unit development thereafter submit (3)The Minister may, on his own motion, or on ap­ made to him in writing in whose production by a holder of a petroleum area part of a petroleum licence is located, of petroleum any licensee, plication production .reservoir recovery writing that petroleum with any other licensee areas include the period specified relation for the purpose from that petroleum whose production more effective direct reservoir, in part of area includes of securing reservoir, to enter into an agreement in writing or licensees, whose production area or part or parts of that petroleum reservoir, withm by the Minister to the unit development in the direction, of that petroleum for or in reservoir, No.
�: 34 and to lodge the agreement apprornl.
with tht Minister forthwith for (4)Where --- (a) a licensee who is directed to enter into an agreement to the unit developme docs not ente1 into such agree'Y'.c·..,,+ specified nt of a petroleum under subsection for or in relation rcservo1r within the period: (3) (b, a licensee enters into such agn·ement bui the agreement in accordance is not lodged with the Minister with subsection (3): 01 pur is lodged with the Minister b:,; the (3) but not approved (c1 the agreement suant to subsection Minister, may by notice in writing him to submit to the Minister, a scheme for or in relation reservoir, and the licensee served on the licensee within the period specified to the unit development shall do so and the Minister direct in the notice, of the petroleum tlw scheme as approved tions shall be binding includes by the Minister on every licensee whose production modifica­ area with or without part of the petroleum reservoir.
PART V FINANCIAL Royalty ,,n petroleum obtaine1.

under licence '15.
(1) Subject shall, licence duction Act, pay to the Government obtained relates to this Act, the holder of a petroleum pro­ and this of petroleum in accordance with his licence in respect royalty by him in the production area to which the licence (2)Where royalty in kind, for the purposes to ''payment" shall and cognate petroleum of section be construed expressions 43(4) and this Part, reference as reference shall be construed of the to delivery accordingly to be paid by a licensee is payable · Prohibit1c-46.
( 1) If the holder of a petroleum on disposal t or petr,,J.e>•1m licence o pay any roya y paya e y 1m on or e ore e ue a e, b f th d d t or any further 1)Y notice served on the holder of the licence, moval of, or any dealings area concerned, moduction may, the Minister prohibit the re­ from the in, or with, any petroleum or from any other production It bl b h' time allowed by the Minister, production area fails A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No.
3 35 47 held by that holder, subject to a licence all outstanding arrangement the payment comply with the notice.

in arrears has been made, and accepted of the royalty royalty or from both, until has been paid or until an fo1 by the Minister, in arrears, and the holder shall (2)Any person who contravenes (1) shall be guilty be liable under sub· and shall, on thousand to a fine of twenty-five of an offence section conviction, and imprisonment for three years.

a notice summary dollars 47.


The Minister as appear appropriate arrangements that the holder of a licence and in particular licence, that compliance from any person a body corporate, be, the holder whether of a licence.

may, from time to time, make such Guarantee to secure tfi�n���tth to the Minister with this Act and his fr et and of icence.

in respect from shareholders in is, or is to or not the body corporate guarantees including may accept complies 48.
(1) Where the liability of a person under this Act or a ia��a1i�/0r on or before the ments.

to pay an amount is not discharged licence date when the amount became payable, by that person, lated at the rate of one third of one per cent per day, upon so much of that amount as from time to time remains to be computed payable from the date on which that amount became there shall be payable by way of penalty, an additional amount calcu- unpaid, and until it is paid .
(2)The Minister may, in a particular case, for reasons that in his opinion the additional amount payable are sufficient , remit the whole or part of under this section.

to be paid by a licensee (3)Where royalty in kind, references as references computed to "amount" in this section to the price of the petroleum as on the date on which it becomes payable.

is payable shall be construed payable as royalty 49.
The Minister may, on application and after consultation with the Minister made to him by a Remission t a re-�fc:-°y assigned y, l licensee .sponsibility for finance, - by order, (a)remit in whole or in part any royalty payable by the applicant; or (b)defer payment of any royalty, on such conditions (if any) as he may specify in the order.

50.

(1) Royalty payable pursuant to section 45 and any Recovery of 48 is a debt due to the State and royalty.
under section payable in the same manner as revenues due to the StatP.

penalty recnverable 48 36 LAWS OF GUYANA ______ [A.O.-��� by the Minister l2) A certificate fied amount of royalty fied in the certificate lhat person for the recovery as evidence ceived right to adduce evidence certifying by a person in any proceedings of any royalty of that fact, but without in rebuttal.
or penalty shall, taken against or penalty, be re- to the prejudice is payable that a speci­ identi- (3)Where royalty m kind, the price of the petroleum as on the date on which it became payable, payable ·oyalty be recovered under section on or before 48 on account (1) and (2).
with subsections payable of the failure the date on which it became payable, is payable computed and any penalty to pay the to be paid by a licensee as royalty may in accordance (4)The provisions to any other provision of this section of this Act.

1udice shall be without pre- PART VI MODIFICATION OF TAX LAWS c',der to nwdify tax laws in re­ spect of : .... -?nsee.

1 51.
1 51.

(]) The Minister assi,�ned responsibility may, for finance of the resolution to affirmative by order, '0 ationa] which shall be subject direct Assembly, that - ·.a) any or all of the written (2) shall not apply to, or in relation in sup­ laws mentioned to a section licensee, or \b) any or all of the written in sub­ laws mentioned to, a (2) shall apply to, and in relation section licensee subject modifications fied in the order.
to such adaptations and qualifications as may be speci­ , exceptions, 2i The written iaws referred to in subsection (1) are - ; :,.

· \:02 Cap.

SJ :0:1 Cap.

81:21 (a)the Income Tax Act; !h) the Income Tax /Jn Aid of Industry) (c) the Corporation Tax Act; and id) the PropNtv Tax Act.

Act; PART VII b'tESTRICTION ON RIGHTS OF LICENSEE AND SPRFACE RIGHTS ¼s,,-...iction on 52.

(1) A licensee right� 1� :.at-lon to cer­ tain lnnds.

�!.
this Act or his licence shall not exercise -- - any of his rights under A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No-3 87 49 (a)except with the written consent of the President, in respect of - (i)any land set apart or required for such public ment) as may be prescribed; purpose (other than mining develop­ (ii)any land dedicated or which is a place of religious or as a place of burial significance; (iii)the foreshore; (b)except \\"ith the written consent of the lawful occupier thereof, in respect of - (i)any land which is the site of, or which is two hundred metres (or such greater as may be prescribed) of, any within distance inhabited, cupied house or building; or temporarily occupied unoc­ fifty (ii)any land within distance which has been cleared otherwise bona fide prepared ing of, or upon which there are growing, agricultural metres (or such greater as may be prescribed) of any land or ploughed for the grow- crops; or (iii)any land from which, mediately have been reaped; preceding, during the year im­ agricultural crops of any land within, metres (or such greater (c)in respect hundred be prescribed) ship, except with the written local authority control or within two distance of, any town­ of the boundaries consent of the having as may over the township; of any land within, ( or such greater (d)in respect hundred metres be prescribed) or of any land set apart or required lage, a new village with the written or within two distance as may of, any village, for a vil­ of the boundaries extension, or a village except (e)in respect licence, consent of the Minister; of any area which is subject under the Mining lease or concession to a ri u No.
3) Cap.

65:01 38 LAWS OF GUY ANA [A.D. 1986 Act, except with the written of the licence, holder of the consent or lease or concession; (f)in respect of any prescribed of such persons land or area except• as may be pres­ with the consent cribed.
(2) Any consent under subsection (1) (a), (c) or (d) may as are to such conditions be given unconditionally or subject of consent specified in the instrument (31 In this section means that part of the "foreshore" rivers which is covered shore of the sea and of tidal navigable by the medium high tide between the spring tides.

tides and the neap orillin1c: 53.


A licensee "''"· servoir, at any point within """"ar railway, shall not carry on any drilling dam, re­ of a railway, two hundred metres operations canal or other public work except with the written of the President or of any person authorised by him, and such consent specifically or generally, in that behalf, consent either may be given either conditionally or unconditionally.

of 54.. A licensee Avoidance H,terfercac" and his licence witb mining operathms.
or reasonably "\c.

mining or exploration shall exercise his rights under this Act in such a manner as to offer no unnecessary, avoidable, or interruption obstruction to any ' on in the landa., operations or lands adjacent being carried to the licence, subject minerals operations ject to the licence.

other than petroleum, being carried on in lands adjacent in respect oP,, or production or prospecting thereto, to the land sub­ Right to ;:raze stock, etc.

55.
55.

(1) The lawful occupier area retains area or a production to graze livestock except pecting in so far as the grazing or production of any land in a prospecting any right which he may have the surface or cultivation of the land, with pros­ interferes upon or to cultivate operations in such area.
of any land in a production area the in the area without but licence; production occupier (2) The lawful shall not erect any building of the holder consent if the Minister withheld lawful may do so subject Minister.

the Minister considers occupier or structure of the petroleum that the consent may give in writing for doing so and thereupon to the conditions is being unreasonably his consent to the the lawful occupier by the (if any) imposed A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) 39 51 LNl).
3 (3)The rights conferred by a licence shall be exercised and so as to effect as little as possible the interests reasonably of any lawful occupier which rights under the licence the reasonable the licence.

of the land· subject or ,m to the licence -and proper conduct of operations are exercised, consistent pursuant with to (4)Without limiting (3), a person carrying under a licence subsection operations gives to the Minister nature and duration in any way will interfere on.
being carried the generality of the provisions of on prospecting or production shall not, except where that person prior notice in writing of the expected of the interference, take any action which with fishing or navigation, lawfully 56.

(1) Where, in the course of prospecting or production area or uon.
in any parcel of land in any prospecting area, any damage is caused or done to the surface operations production of the parcel of land, or to any cultivation as a result of those operations, pay fair and reasonable title or interest with his right, compensation title or intere�.

the licensee in or over that parcel of land in accordance to the holder of any right, shall be liable to r,,mpema­ or building thereon, payable .
(2) The compensation be such sum as may be agreed to between the licensee person entitled ment can be arrived determined the licensee under subsection (1) shall and the and, if no agree­ at between them, such sum as may be made to it by by the High Court on application or the person entitled the compensation to receive to receive the compensation.

57.
57.

A licensee shall, before commencing prospecting :�:!�0:' to operations or production operations to the holder of any right, title or interest land, who is in occupation tention as may be prescribed.

to commence the operations, in or over that �����oi:' notice of the licensee's in such manner and form in any parcel of land, give comme � e thereof, in-etc.

58.
58.

(1) The Minister may acquire land for the purpose of !tl�:rf0'!, carrying operations Production • on, or facilitating the carrying on, of prospecting or prospecting or Productten operation.

(2)The provisions Act shall mutatis Purposes any land under subsection the carrying for the purposes public work .

of the Acquisition of Lands for Public apply to the acquisition mutandis of cap.
sz:os on, or facilitating operations, (1) as if the carrying on, of the prospecting or production were a of which the land is being acquired, No.

3] --�----� - 40 LAWS OF GUYANA [A.D. 1986 PART VIII MISCELLANEOUS ::.

ogtcaJ geological, fer�ion 59.

(1) The Minister r o� �,�!


:!�� geophysical 1 Guyana which in his opinion and other surveys reservoir are relevant or for the prospecting on such terms and conditions for, or production as may be agreed m and investigations for the identification may permit any person to carry on of petroleum of, petroleum, to IJetween him and the applicant for the permission.
(2)The terms and conditions to in subsection to - (l)may include terms and conditions referred relating (a)the period for which the permission is granted; (b)furnishing as a result to in that subsection; to the Minister of any survey or investigat obtained ion referred information (c)restrictions, if any, on the dissemination to any of any informa­ persm, other than the Minister tion obtained ion; and vestigat id) payment to the Government as a result of the permission.
of the survey or in­ of fees for the grant 60.

(1) A body corporate shall not, without which is the holder of a petroleum in writing the prior consent production licence of the Minister, - 1 •• : (>Utro.1 of body cor­ porate not l1o he irtven wiUHtUt con sent of Minl�ter.
(a)register the transfer shares in the body corporate person or his nominee; or of any equity share or to any particular (b)enter into any agreement, (whether or under­ arrangement, or not having legal or equit­ standing, able force) person, with any particular if the effect mentioned in the case mPntioned person or any other person, of doing so would be to give, in the case person or, (b), the particular (a), to the particular in paragraph control of the body corporate.
in paragraph (2)On application duly made to the Minister in writing for his consent consent if the consider:" that 1mblic under this section, the Minister interest shall give his would not be pre- A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) [No.

3 41 .51 by the change of control judiced refuse shall otherwise uf considering any such application and obtain a decision such information on the application.
of the body corporate, and for the purpose may call for to take necessary to give his consent; as he considers the Minister but For the purposes of this section - (3) (a)a person shall be deemed to have control of a body corporate - (i) if the person or his nominee person and his nominee twenty per cent or more of the issued in the body corporate; equity or the holds, hold, a total of shares (ii)if the person is entitled prevent the appointment than half of the directors or porate; of, half or more of the body cor­ to appoint, or (iii)if the person is entitled to exercise, or the exercise of, the right to cast control votes in respect of the total number of votes in respect the issued shares porate; in the body cor­ equity of not less than two-fifths of shares", in relation (b) "equity means shares in the body corporate voting in all circumstances meeting preference shares, which do not have such voting of the body corporate, shares other than preference at any general and includes carrying to a body corporate, rights; rights (c)"preference shares" the right to payment amount, priority class or classes out other rights; and means shares which carry of a fixed a fixed amount, of a dividend in or not exceeding to payment of a dividend on any other with or with­ of shares, whether in paragraph to control (d)the reference entitlement to cast votes shall include the exercise control and include indirectly, able as a result of that right directly s control .
that is exercise­ of or by means of trusts the exercise of the right an entitlement (a) (iii) to the to or No.

3] 42 LAWS OF GUYANA JA.D Hi86 Power of entry, etc 61.

(1) For the purposes all reasonable - times, may.

at of this Act an Inspector (a, enter any area, structure, building, vehicle, vessel or aircraft has been, is being, with prospecting tions; which, in the opinion of the Inspector.
or is to be, used in connection operations opera or productiua (h1 inspect and test, or cause to be tested by a quali any machinery fied person, in the opinion Inspector, of the or is to be, used in connection operations referred has been, is being with any of the (a); to in paragraph or equipment which, (c1 take or remove for or for use in evidence the puri.
;o.,e of analys1& in connection under this Act samples of petro, testing an offence leum, water or other matter or thing from a well; with or (d I inspect, take extracts from, and make copies of.

any document referred to in paragraph (a): relating to any of the operations (eJ by instrument in writing issue directions to.
and by him in, or in connection on, a licensee impose restrictions employed of the operations with respect sons so employed referred to the health and safety by the licensee: or any person with, any (ai to in paragraph of the per.

(f• direct the licensee in writing to effect (i)the cessation of any of the operations re.

(a) on or in, and the £erred to in paragraph withdrawal structure nection or building with any such operations; of all personnel from, any area.
being used in con (ii)the discontinuance ery or equipment.

of the use of anv machin if in the opinion structure or building of the Inspector the area.

or equipment or machinery 43 55 A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION.1 [No.
3 unless and until such action as is is unsafe, necessary for safety tion is taken by the licensee in the direc­ and completed; and specified (g)make such examinations and inquiries to ensure that the provisions necessary Act, or any directions conditions imposed Act, are being complied with; and or orders made under this issued, restrictions as are of this or (h)obtain statements and record and appear at, or conduct, ac­ cidents in the course of any of the operations referred (a), and ap,, to in paragraph pear at inquests, and call and examine and cross-examine occurring witnesses.
inquiries from witnesses, regarding witnesses, (2)Before any of his powers under subsection exercising (1), if there is any person present who is, or appears charge of the area, structure, aircraft, in respect spector to whom he is about to give a direction.
or building, matter, or equipment, of which the power is about to be exercised, to that person and to any person to pe, in vehicle, or vessel, thing or document an In­ shall identify machinery himself (3)Any person who is aggrieved by a decision or direc­ made under subsection (1) may appeal in to the Minister, tion of an Inspector writing after giving portunity the bringing the disposal from.
of being heard, of the appeal of the appeal, of who shall, and the determine the appellant and dispose as soon as practicable Inspector a reasonable of the appeal, pending the operation, appealed or direction and op­ but shall not affect the decision (4)On appeal under subsection affirm or modify the decision (3), the Minister may appealed or direction rescind, from.
(5)While exercisin g his powers under subsection (1), an may be accompanied by any person who the Inspector Inspector believes spected, has special analysed, of any matter or expert knowledge being m­ tested or examined.
(6)A person who is an occupier, or in charge of any or building, area, structure aircraft, machinery shall provide assistance the provision an Inspector or equipment (including or in charge of any vehicle, vessel, (1), to b subsection and facilities with all reasonable of necessary means of trans- referred 55 No 3] 44 LAWS OF GUYANA [A.D. 1986 port) for the effe<:tive by this section.
faspector exercise of the upon an powers conferred (7)Any person who - r_a) without reasonable excuse, an Inspector under this section: in the exercise obstructs or hinders of any of his powers (b)knowingly produces in any material spector under this section: a document, or recklessly makes a statement which is false or misleading to or before an In­ particular, engaged in carrying out his functions or or (c)with intent to mislead or deceive does any act or withholds an Inspector any when so engaged.
information, shall, sand dollars on summary conviction, and imprisonment be liable for two years.

to a fine of ten thou­ uL�truc��on n f lirec�ee.

62.

Any person who, without a licensee in or from doing, any act which the reasonable excuse, obstructs is authorised to do by or under this Act or his licence, on summary r0nviction.

and imprisonment be liable for one year.

to a fine of five thou­ or prevents licensee shall, sand dollars , .

,,1ict1on 63.

11 l I etrnlccim '.'"


;:�,"J��ru which it has been nbtained shall not be removed from the area from of in to any other area, or disposed any manner, except - (a\ "t1hi8d to subsection purpose of sampling 12), by a or analysis; for the licensee, (b)by a licensee in accordance with the conditons ·vf his licence: or (c)as otherwise permitted by or under this Act.

(2)A licensee send out of any area any sample of petroleum consent of the l\1ini�ter given under this subsection.
shall not, under subsection without (1) (a), take or the written (3)Any person who contravenes on summary conviction, be liable shall, (1) or (2) subsection - (a)in the case of an individual, thousand dollars and imprisonment to a fine of five for one yeal'; A.D. 1986] PETROLEUM (EXPLORATION AND PRODUCTION) 45 57 [N0 3 (b)in the case of a body corporate thousand dollars to· d iine of and imprisonment twenty-five for one year.

64.
64.

Any person who - ��i::Yrat� information, (a) in, or in connection this Act or his licence given information to believe particular; with, any application gives or permits under etc.
to be which he knows or has reason is false or misleading in a material (b)in any report, pursuance permits to be included he knows or has reason to believe in a material misleading return or affidavit submitted in or includes of this Act or his licence, which any information is false or or particular; (c)places or deposits, or is accessory to the placing of, any petroleum or other sub­ or depositing of mis­ stance in any place with the intention to mislead, leading, any other person as to the possibility of a petro­ leum reservoir that it is likely in that place, or knowing existing i;hall.
on summary conviction, - be liable (i)in the case of an individual, to a fine of for and imprisonment dollars five thousand one year; (ii)in the case of a body corporate, to a fine of thousand dollars and imprison­ twenty-five ment for one year.

prejudice to l!ny other provision of this Act, Minister's 65.
(1) Without where the Minister his possession prospecting obtained person -- has reason to believe or in his power information or production operations operations, that a person has in P�f� r � or data relating ������;i1�; that or pro�uction s. operation or petroleum require to lor:::-u��­ or the value thereof, he may, by notice, (a)to furnish data within fied in the notice; to the Minister the period and in the manner speci- the information or (b)to attend before at such time and place specified to answer questions a person identified and in the notice therein to those operations relating r..:o .JO A.D. 1986) LAWS OF GUY ANA [No 3 or petroleum tions, or the value thereof; as a result and obtained of the opera· at the time and place specified tion or data in his possession to those operations result of the operations or petroleum or power relating obtained as a or the value thereof.
therein informa- {2) Where any information or data, furnished pursuant to a notice under subsection mentioned document, may make copies in paragraph the Minister of, or take extracts (a) or (c) thereof, is contained in a or other person to whom it is furnished /1), in relation to any matte1 from, the document.
13) .\ny person who -- (a)refuses under or fails to comply with a notice subsection pable of complying (1) to the extent with it; to which he is ca­ (b)in purported compliance or reck­ which is (1) (a), knowingly or data in any material under subsection lessly furnishes false or misleading or information with a requirement particular; (c)when attending before any person in pursuance (1) (b) or under subsection or data to any person under subsection any information of a requirement furnishing in pursuance (1)(c), knowingly or furnishes false or misleading be liable for one year.
of a requirement or recklessly any information and imprisonment makes a statement or data which is in any material particular, on summary conviction, to a fine of ten thou­ shall, sand dollars this section, profile, and any data recorded ( 4) In disc, film, diagram, or positive, computer from data so recorded.

or other device or stored and any material "document" includes photograph, whether by means of any subsequently book, tape, chart, derived negative Offence committed by body corporate.

66.
66.

Where an offence body corporate sent or connivance the part of, a director.

is proved to have been committed of, or to be attributable which has been committed with the con· to any neglect by a on manager, secretary or other similar A.D. 1986] 47 PETROLEUM (EXPLORATION AND PRODUCTION) 59 [No 3 of the body corporate, officer to act in any such capacity, shall be guilty and punished of the offence accordingly.
or any person he, as well as the body corporate, and liable to be proceeded who was purporting against 67.

(1) Where a person is convicted this Act, the court convicting • make - Imposed, penalty f ?
;j:ft� him may, in addition on convl ta1 orcer n £ offences of an offence to any other against ct1on (a)an order for the forfeiture of any vehicle, air- vessel, craft, commission machinery of the offence; or equipment used in the and (b)an order - (i)for the forfeiture of petrole um recovered, in the course fence; or of the of­ of the commission (ii)for the .
payment, by the person convicted, to the State of an amount equal to the of the sale of petroleum proceeds so re­ or covered; (iii)for the payment by that.

person to the State assessed of the value at the wellhead, of the quantity in respect the court, petroleum or for the payment so recovered.

of such a part of that amount as the court, having regard the case, to all the circumstance fit.
thinks by of s of (2)Where the court is satisfied subsection (1) (b) (i) cannot for any reason that made the order may, upon application by the Chief Inspector referred to in subsection (1) (b) (ii) or (iii).

that an order made under the court be enforced, set aside the order and make an order made in that behalt 68.

A licensee shall.

at all times, all actions, claims and demands fied against or made against licensee the licensee in the exercise or purported under this Act or his licence.
keep the State indemni- that may· be brought r: 1�:'e::'£y done by the state .

of the rights of exercise obligation the State by reason of anything 69.

(1) The Minister may - (a)for the nuroose of giving effect to any treaty Directiona to gtve effect to treaty, etc.

.

GU 48 '.\io.
3] LAWS OF GUY ANA [A.D. 1986 agreement, which Guyana is a party; or convention or other arrangement to {hr in the interests of peace and good relationship with other countries, issue �o any -- : ollowmg matters licensee directions in respect of all or any of the or his operations (i)restricting production in area to which the licence relates such manner or to such extent as may be speci­ fied in the direction; in the prospecting (ii)prohibiting him from carrying in the whole of such prospecting area or such part thereof in the direction; on any operations or production as may be specified (iii)where only part of a petroleum is reservoir to recover area and the other other than Guyana in such production in any country are one or more persons located or any other part of the petroleum reservoir 1s located and there entitled the petroleum country to enter into an agreement within SlH'h nerson or persons, be specified unit development as is located requiring in writing with any such time as may for the of that petroleum : petroleum from such part of in such in the direction, other than Guyana, reservoir reservoir the licensee therefor lawfully Provided and sufficient whom the direction from time to time.
so specified that the Minister cause shown by the licensee may, on good is issued, extend the time to 12) A licensee ;1irn under .

::ut,cctkn deemed to hav,i cun:rnitted anrl accordin!

!Jv sequence ihereto.


of the breach o,:· a the provisions shall comply with any direction (1) and if he fails to do so he shall be to issued a breach of a condition of of this Act relating the licence to the con shall apply condition of a licence (3)ln this section to it hv section 44. ssigned "unit development" has the meaning IA.D.

:1986 49 PETROLEUM rEXPLORATION AND PRODUCTION) No.
3) 61 PART IX REGULATIONS 70 tl) The }linister may make regulations or carrymg ou make regula- · f · the purposes of this Act.

t Power to uons.
(2)Without prejudice to the generality of the foregoing, may, in particular, provide for all or any of the the regulations foiiov, ing matters :- (a)the prospecting for petroleum, carrying of all works for on of all operations that purpose; including and the execution the lb) the production of petroleum, including the carrying of all works for that purpose; on of all operations and the execution (c)conservation petroleum or other natural and prevention of the waste01 resources; (d)the form and contents of, and conditions with re­ spect to, an application of licence; for the grant or renewal erection {e) the construction, or use of installations, machinery , maintenance, operation or equipment; (f)the control of the flow· and the prevention of the escape of petroleum, than petroleum) matters; or other noxious water, gases (other or deleterious (g)the prevention or a mixture other matter; (h)the removal of the escape of drilling fluid, of drilling fluid and water or any machiner of structures, hrought and other property nection duction not used or intended to be used in connection or conveyance; with that prospecting, with the prospecting or conveyance of, petroleum, production into Guyana, y, equipment in con­ for, or the pro­ that are (i)the pressure maintenance in, or the repressuring of a petroleum leum; reservoi r and recycling of petro­ 60 1 .. 50 No.
3J LAWS OF GUY ANA f.\.D !986 (j, the secondary or tertiary recovery of petroleum from a petroleum lw used in such recovery: reservoir and the methods to (kl the use of wells and the use of the subsurfaces for the disposal of petroleum.

substances pecting water and other with the pros­ for or the recovery in association of petroleum: produced (I, th(� methods to be used for the measurement of petroleum.
a well: water and other substances from c,afrtv and welfare and safety of persons tion with the prospecting or conveyance standards.

employed and the health in or in connec­ for, or the production of.

petroleum.

(n) preserving taking.

cores, cuttings water: and samples and furnishing to the Minister of petroleum and {o) giving information; to the Minister reports, returns and other Ip\ the registration the registration struments: of instruments and the effect of.
or failure to register, of in­ (q)the transfer of licences or interests in licences, (rl the taking of logs or directional surveys or making other down-hole investigations: (s, annual charges.
(t1 fees: (u\ the division of the geographic area of Guyana into graticular sections: (v, subject to any other provis10n of this Act, the of any notice or other docu­ manner of service ment: and the form of any notice: (wl public purpose for the purpose of section 52(1) (a) (x) distances for the purposes of section 52(1) (b1, (cl and (d): AD.
1986] PETROLEUM (LXPLORATION AND PRODUCTION) 51 61 [Nu 3 (y)land or area or nature of land or area or tht persons poses of section 52(1) (f); whose consent is required for the pur· (z)any other matter that may be, or is required to be, prescribed (3)The Regulations by the Minister.
a breach of any Regulation for such penalty commits be liable fine not exceeding for a period not exceeding imprisonment a further penalty day during which the offence that any person who may provide shall, as may be provided dollars three years or both such fine and one, to is a continuing for each and where the offence not exceeding twenty-five continues.

one thousand thousand dollars therein, being a or imprisonment on summary 1..onviction, PART X 71.
Sections REPEAL 3 to 15 (inclusive) tion) Act are hereby repealed.

of the Petroieum (Produc-Repe.u.

cap sso5 Passed by the National Assembly on 1986-04-14,1 Bill No.

1/1986 Clerk of the National Assembly.

F.A Narain. '