PETROLEUM INDUSTRY ACT, 2021

Section 82: Exclusive Right to Conduct Operations.

2021Section 82 of 320Federal Republic of Nigeria

1 A lessee under a petroleum mining lease shall have the exclusive right to carry out the development and production of the petroleum with respect to the formations under the lease area as defined in the lease.

2 A lessee under a petroleum mining lease shall have the exclusive right to drill exploration and appraisal wells in the lease area and the non-exclusive right to carry out petroleum exploration operations.

3 A petroleum mining lease for conducting upstream petroleum operations shall only be granted on the basis of a commitment from the applicable lessee to—
a develop and produce the commercial discovery of crude oil or natural gas in the area to which the lease relates in accordance with the applicable field development plan; or
b restart or continue petroleum production in the area to which such lease relates.

4 The Commission shall, during the term of a petroleum mining lease—
a verify the implementation of the work commitments by the applicable lessee and its compliance with the applicable field development plan;
b monitor capital and operating costs incurred by the applicable lessee; and
c ensure that upstream petroleum operations at all times are carried out to conform with the standards required by this Act and by regulation made under this Act.

Cite this section

Section 82, PETROLEUM INDUSTRY ACT, 2021 (2021).

https://repo.podus.ai/laws/petroleum-industry-act-2021/section/82/