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As enacted
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Part III · Petroleum Resources Agreement, Exploration Blocks and Development Licences

13. Suspension or cancellation of Development License

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

(1)

Where the PRDC is satisfied that a Contractor to whom a Development License has been issued —

(a)

has failed to comply with a notice issued under section 12 or has not taken reasonable steps to rectify or correct the condition resulting from the contravention specified in such notice or has not shown reasonable cause for such contravention;

(b)

has not complied with any direction given by the

PRDC under this Act; or

(c)

has ceased to conduct petroleum operations according —

(i)

to the work programme which is part of the

Petroleum Resources Agreement ; or

(ii)

to the project development and investment proposal submitted for the Development

License; or

(d)

has abandoned or constructively abandoned the

Development License by failure to diligently conduct petroleum operations in the area covered by the

Development License; or

(e)

has surrendered the Development License; or

(f)

has been convicted of an offence under this Act or of any regulation made under this Act, the PRDC may suspend or cancel the development license.

(2)

Contractor aggrieved by a decision of the PRDC to suspend or cancel a Development License issued under section 10 shall have recourse to the arbitration provisions if any, which forms part of the relevant Petroleum Resources

Agreement, for resolution of the matter.

Read on from s 14

Part IV

Functions of the Secretariat

Read on from Part IV

Part V

Fiscal Provisions

Read on from Part V

Part VI

General

Read on from Part VI