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

15. Transfer of participating interest in a Development License

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

(1)

A Contractor may, with the approval of the Cabinet of Ministers and subject to such conditions as may be imposed by them in this regard, have the right to transfer or assign his participating interest in a Development License.

(2)

The Cabinet of Ministers shall grant approval for the transfer or assignment of a participating interest of a contractor, provided that :

(a)

the assignee or transferee is of good standing, has financial capability to meet his obligations and is willing to provide an unconditional undertaking to the PRDC to perform its obligations and to provide the guarantees as provided in the relevant Petroleum

Resource Agreement ;

(b)

the assignee or transferee is not a company incorporated in a country with which the State has restricted trade or business ;

(c)

the assignor or transferor and assignee or transferee respectively, are willing to comply with any reasonable conditions as may be imposed by the

Cabinet of Ministers, to ensure effective performance of the Agreement ; and

(d)

the assignment or transfer will not adversely affect the performance of obligations under the Agreement or in any manner whatsoever be construed to be contrary to the interests of the State.

(3)

A contractor aggrieved by the decision of the Cabinet of Minister,

(a)

withholding approval for a transfer or assignment;

or

(b)

imposing conditions subject to which the approval for the transfer or assignment is given, may have recourse to the procedure specified in the relevant

Petroleum Resources Agreement for resolution of the matter.

Read on from s 16

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