Petroleum Act 1984

(b) is satisfied that the applicant has complied with the requirements of this Act relating to an application for a production licence; and

(c) is satisfied that he or she is required under section 29(3) or 42(2) to grant to the applicant a production licence in relation to specific blocks,

the Minister must determine to grant to the applicant the production licence subject to conditions.

(b) is satisfied that, although the applicant has not complied with the conditions under which the applicant's exploration permit or licence was granted, the lawful directions, if any, given to the applicant by the Minister or this Act, circumstances exist that justify the granting of the production licence,

the Minister may determine to grant to the applicant the production licence in respect of all, or part, of the land to which the application relates subject to conditions or refuse to grant it.

(3) Where the Minister exercises his or her power under subsection (1) or (2) and determines to grant to an applicant a licence, the Minister shall grant a licence only in relation to the minimum number of blocks which, in his or her opinion, is reasonably necessary for the applicant to fully exploit the commercially exploitable accumulation of petroleum which occurs in the application area.

(4) Where the Minister determines under subsection (1) or (2) to grant a production licence, he or she shall give notice to the applicant of:

(a) the conditions subject to which he or she is prepared to grant it; and

(b) the date, not being earlier than 28 days after the date of the notice, after which the application is to lapse unless the Minister has received from the applicant a written acceptance of the conditions specified in the notice.

(5) If the Minister receives from an applicant within the time specified in subsection (4)(b) a written acceptance of the conditions specified in the notice referred to in subsection (4), the Minister must grant to the applicant the production licence subject to those conditions.

(6) If the Minister does not receive a written acceptance of the conditions specified in the notice referred to in subsection (4) from an applicant within the time specified in subsection (4)(b):

(a) the Minister must not grant the applicant the production licence; and

(b) the applicant's application lapses on the expiry of the time specified in subsection (4)(b).

(7) If the Minister grants a production licence in respect of part only of the land to which the application relates, the application, unless the Minister expressly states otherwise when granting the production licence and subject to subsection (3), remains in force in respect of the remainder of the land to which the application relates until the application is further dealt with under this Act.