Section 2: Oil exploration licences, oil prospecting licences and oil mining licences.

(1) Subject to this Act, the Minister may grant-
(a) a licence, to be known as an oil exploration licence, to explore for petroleum;
(b) a licence, to be known as an oil prospecting licence, to prospect for petroleum; and
(c) a lease, to be known as an oil mining lease, to search for, win, work, carry away and dispose of petroleum.
(2) A licence or lease under this section may be granted only to a company incorporated in Nigeria under the Companies and Allied Matters Act or any corresponding law.
(3) The provisions of the First Schedule to this Act shall, in so far as they are applicable, have effect in relation to licences and leases granted under this section.