24. Unit Development Plan

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Where a petroleum reservoir which is capable of being commercially developed –

(a)

straddles two or more exploration blocks; or

(b)

covers an area which is regulated by two or more

Development Licences, the Authority shall, for securing more efficient commercial development of the petroleum reservoir situated therein, require the contractors having an interest in the entire reservoir or such portion of such blocks as the case may be, to jointly submit to the Authority a Unit Development Plan which shall comprise such matters as shall be specified by the Authority and such other matters which may in the circumstances be required for the more efficient commercial development thereof.

(2)

The Authority shall, upon a consideration of the Unit

Development Plan submitted to it under subsection (1), recommend such Unit Development Plan with amendments required if necessary, to the Minister for approval.

(3)

After obtaining an approval of the Minister under subsection (2), the Authority shall notify the contractors who submitted the Unit Development Plan, that the

Development Licence issued to such contractors shall cease to be effective from the date of such notification and be converted to an Unit Development Licence authorising the conduct of joint petroleum operations within the area to which the Unit Development Plan relates, under the terms and conditions as may be prescribed.

Part V

National Petroleum Operator

Read on from Part V

Part VI

Fiscal Provisions

Read on from Part VI

Part VII

Chief Executive Officer and Staff of the Authority

Read on from Part VII

Part VIII

Petroleum Resources Development Fund

Read on from Part VIII

Part IX

General Provisions

Read on from Part IX