PETROLEUM (EXPLORATION AND PRODUCTION) ACT: INDEX TO SUBSIDIARY LEGISLATION

PETROLEUM (EXPLORATION AND PRODUCTION) ACT: INDEX TO SUBSIDIARY LEGISLATION

Petroleum (Exploration and Production) (National Petroleum Company) Regulations

Petroleum (Exploration and Production) (General) Regulations

PETROLEUM (EXPLORATION AND PRODUCTION) (NATIONAL PETROLEUM COMPANY) REGULATIONS

[Section 100]

Arrangement of Regulations

    Regulation

    1.    Title

    2.    Interpretation

    3.    Objects of Company

    4.    Shareholding of Company

    5.    Composition of Board

    6.    Missing

    7.    Prohibition of publication of, or disclosure of information to unauthorised person

Act 10 of 2008,

SI 57 of 2011.

1.    Title

These Regulations may be cited as the Petroleum (Exploration and Production) (National Petroleum Company) Regulations.

2.    Interpretation

In these Regulations, unless the context otherwise requires—

“Board” means the Board of Directors of the National Petroleum Company;

“Company” means the National Petroleum Company;

“licence” means a petroleum exploration licence or a petroleum development and production licence; and

“member” means a shareholder in the Company, other than the Government.

3.    Objects of Company

The Company shall hold shares on behalf of the Government in petroleum operations and shall—

    (a) carry, explore, produce, refine, process, transport and trade in—

        (i)    petroleum from wells;

        (ii)    petroleum products;

        (iii)    natural gas; and

        (iv)    other fluid hydro-carbons;

    (b)    carry out directly or through its subsidiaries, with or without the association of third parties, any of the activities listed in these objectives outside Zambia;

    (c)    form consortia with local and foreign enterprises, either as leader or not, so as to expand its activities, gather technology and expand investments applied to the petroleum industry;

    (d)    establish subsidiaries, which may enter into joint ventures with other enterprises either with majority or minority shareholding;

    (e)    establish a subsidiary, which may operate in association with other enterprises with majority or minority shareholding, for the purpose of building and operating—

        (i)    the Company’s pipelines; and

        (ii)    the Company’s fleet for the transportation of petroleum, national gas and other by-products;

    (f)    acquire goods, works and services in accordance with the Public Procurement Act, 2008; and

    (g)    perform such other functions as may be required for the better carrying out of these Regulations.

4.    Shareholding of Company

    (1) The Government shall hold 51 per cent of the shares in the Company and 49 per cent of the shares of the Company shall be available to Zambian citizens through the flotation of shares on the Zambian Stock Exchange.

    (2) The Government may transfer its shares upon a change of policy.

5.    Composition of Board

    (1) The Board shall consist of the following Directors:

    (a)    a person with expertise in—

        (i)    engineering;

        (ii)    law;

        (iii)    finance;

        (iv)    upstream petroleum sector; and

        (v)    petroleum economics;

    (b)    a representative of the Ministry responsible for finance;

    (c)    a representative of the Ministry responsible for energy;

    (d)    a representative of the Ministry responsible for mining; and

    (e)    a representative of the Attorney-General.

    (2) A person shall not be eligible for appointment as Director of the Board if that person—

    (a)    is not a citizen of Zambia;

    (b)    is an undischarged bankrupt;

    (c)    is adjudged or declared bankrupt under any written law in Zambia;

    (d)    has been convicted of an offence under the Act or any other written law and sentenced to a term of imprisonment exceeding six months without the option of a fine;

    (e)    has been convicted of an offence involving fraud or dishonesty;

    (f)    holds a licence;

    (g)    has an interest in a partnership or corporation that is that holders of a licence.

6.    

7.    Prohibition of publication of, or disclosure of information to unauthorised person

    (1) A person shall not, without the consent in writing given by, or on behalf of, the Board, the Board, publish or disclosure to any unauthorised person, otherwise than in the course of that persons duties, the contents of any document, communication or information whatsoever, which relates to, or which has come to that person’s knowledge in the course of that person’s duties under this Act.

    (2) A person who contravenes sub-regulations (1) commits an offence and is liable, upon conviction, to a fine not exceeding 2,00,000 penalty units or to imprisonment for a period not exceeding two years, or to both.

    (3) A person who, having information which to the knowledge of that person has been published or disclosed in contravention of sub-regulation (1), unlawfully publishes or communicates the information to any other person, commits an offence and is liable, upon conviction, to a fine not exceeding 2,00,000 penalty units or to imprisonment for a period not exceeding two years, or to both.

PETROLEUM (EXPLORATION AND PRODUCTION) (GENERAL) REGULATIONS

[Section 105]

Arrangement of Regulations

    Regulation

PART I
PRELIMINARY

    1.    Title

    2.    Interpretation

PART II
BLOCKS

    3.    Graticulation and constitution of blocks

PART III
BIDS

    4.    Submission of bid

    5.    Criterion for selection of bidders

    6.    Evaluation of bids

PART IV
PETROLEUM OPERATIONS

    7.    Exploration period

    8.    Application for petroleum exploration licence

    9.    Application for petroleum development and production licence

    10.    Issuance of licence

    11.    Notice of intention to reject application

    12.    Rejection of application

    13.    Application for renewal of licence

    14.    Development and production operations

    15.    Application to amend programme of exploration operations

    16.    Application to relinquish area or part of area covered by licence

    17.    Notice of intention to suspend or cancel licence

PART V
TRANSFERS AND ASSIGNMENTS

    18.    Application for approval to transfer or assign licence, etc.

    19.    Application for consent to register transfer of shares in company, etc.

    20.    Certificate of evidence

PART VI
WORK PRACTICES

    21.    Application for consent to flare natural gas

    22.    Application for consent to drill well within, or across, certain limits of licence area boundary

    23.    Drilling practices

    24.    Notice of directions in respect of illegally drilled well

    25.    Order for removal of property

    26.    Notice to survey well, etc.

    27.    Notice of direction to comply with conditions of licence

    28.    Abandonment of well

    29.    Construction of pipelines and related facilities

    30.    Measurement

    31.    Notice to cease wasteful production practices, etc.

PART VII
RETURNS, ACCOUNTS AND OTHER RECORDS

    32.    Quarterly and annual reports

    33.    Quarterly and annual reports

    34.    Daily drilling reports

    35.    Records, accounts, etc. to be maintained

    36.    Final reports

    37.    Access to petroleum exploration and development information

    38.    Enforcement notice

PART VIII
GENERAL PROVISIONS

    39.    Penalty

    40.    Fees and surface rentals

    41.    Royalty and production fee

    42.    Terms and conditions of licences

        FIRST SCHEDULE

        SECOND SCHEDULE

        THIRD SCHEDULE

SI 58 of 2011.

PART I
PRELIMINARY

1.    Title

These Regulations may be cited as the Petroleum (Exploration and Production) (General) Regulations.

2.    Interpretation

In these Regulations, unless the context otherwise requires—

“Committee” means the Petroleum Committee constituted under the Act;

“danger area” means an airspace of defined dimensions within which activities dangerous to the flight of aircraft may exist at specified times;

“licence” has the meaning assigned to it in the Act; and

“Technical Committee” has the meaning assigned to it in the Act.

PART II
BLOCKS

3.    Graticulation and constitution of blocks

    (1) For the purposes of establishing the blocks referred to in section 8 of the Act, the surface area of the Republic shall be deemed to be divided into graticular sections by reference to meridians of longitude which are five minutes apart, measured from the meridian of Greenwich, and by reference to parallels of latitude which are five minutes apart, measured from the equator.

    (2) Each graticular section shall be bounded by part of two meridians of longitude which are five minutes apart and by part of two parallels of latitude which are five minutes apart.

    (3) Where a portion of a graticular section includes land in the Republic and land outside the Republic, only that portion of the land in the Republic shall constitute a graticular section for the purposes of these Regulations.

    (4) A block awarded to a licensee shall be defined by reference to graticular sections.

PART III
BIDS

4.    Submission of bid

A bid submitted pursuant to sub-section (3) of section 9 of the Act shall be in Form I set out in the Second Schedule.

5.    Criterion for selection of bidders

The Minister shall consider the following matters in the evaluation of bids and selection of bidders—

    (a)    the technical competence and experience of the bidder with respect to petroleum operations;

    (b)    the financial resources available to the bidder to fulfil the petroleum exploration, development and production obligations under a licence;

    (c)    the extent to which the bidder will provide advanced technology and skills to the Zambian petroleum industry; and

    (d)    the specific contents of the bid received.

6.    Evaluation of bids

    (1) The Minister shall cause the evaluation of bids by the Technical Committee within 30 days of receiving the bids.

    (2) The Technical Committee shall, where it receives bids for evaluation, recommend to the Committee to grant or refuse to grant a licence to the bidder.

    (3) The Minister shall, where the Committee refuses to grant a licence to a bidder, inform the bidder of the rejection in Form II set out in the Second Schedule within seven days of the decision.

    (4) No rights of any kind shall be created in favour of any bidder by virtue of the submission of a bid.

PART IV
PETROLEUM OPERATIONS

7.    Exploration period

The exploration period shall comprise—

    (a)    an initial period not exceeding four years in duration; and

    (b)    upon renewal of a licence, two further periods not exceeding three years each in duration.

8.    Application for petroleum exploration licence

An application for a petroleum exploration licence shall be in Form III set out in the Second Schedule.

9.    Application for petroleum development and production licence

    (1) An application for a petroleum development and production licence shall be in Form III set out in the Second Schedule.

    (2) A request for further information in respect of an application under sub-regulation (1) shall be in Form IV set out in the Second Schedule.

10.    Issuance of licence

    (1) The Minister shall, where the Committee approves an application made under regulation 8 or sub-regulation (1) of regulation 9, issue the applicant with a licence within seven days of the Minister’s decision.

    (2) A petroleum exploration licence shall be in Form V set out in the Second Schedule.

    (3) A petroleum development and production licence shall be in Form VI set out in the Second Schedule.

11.    Notice of intention to reject application

The Minister shall, where the Minister intends to reject an application made under sub-regulation (1) of regulation 9, notify the applicant of such intention in Form VII set out in the Second Schedule.

12.    Rejection of application

The Minister shall, where the Committee rejects an application for a licence, notify the applicant of the rejection in Form VIII set out in the Second Schedule, within seven days of the Minister’s decision.

13.    Application for renewal of licence

    (1) An application for the renewal of a licence shall be in Form IX set out in the Second Schedule.

    (2) The Minister shall—

    (a)    where the Minister approves an application under sub-regulation (1), endorse the renewal on the licence; and

    (b)    where the Minister intends to reject an application under sub-regulation (1), notify the applicant of such intention in Form VII set out in the Second Schedule.

    (3) The Minister shall, where the Minister rejects an application under sub-regulation (1), notify the applicant of such rejection in Form VIII set out in the Second Schedule and shall endorse the rejection on the licence.

14.    Development and production operations

A licensee shall, where the licensee discovers petroleum in a licence area, which the licensee considers may be exploited commercially, prior to the commencement of development operations, submit to the Minister the information set out in Form X of the Second Schedule.

15.    Application to amend programme of exploration operations

    (1) An application to amend a programme of exploration operations shall be in Form XI set out in the Second Schedule.

    (2) The Minister shall—

    (a)    where the Minister approves an application under sub-regulation (1), endorse the amendment on the licence; and

    (b)    where the Minister rejects an application under sub-regulation (1), notify the applicant of the rejection in Form VIII set out in the Second Schedule and shall endorse the rejection on the licence.

16.    Application to relinquish area or part of area covered by licence

    (1) A notice of intention to relinquish all or any of the blocks subject to a licence shall be in Form XII set out in the Second Schedule.

    (2) An application under sub-regulation (1) shall be in Form XIII set out in the Second Schedule.

    (3) A certificate of relinquishment shall be in Form XIV set out in the Second Schedule.

17.    Notice of intention to suspend or cancel licence

    (1) A notice of intention to suspend or cancel a licence shall be in Form XV set out in the Second Schedule.

    (2) The Minister shall, where the Minister suspends or cancels a licence, notify the licensee of the suspension or cancellation in Form XVI set out in the Second Schedule and endorse the suspension or cancellation on the licence.

PART V
TRANSFERS AND ASSIGNMENTS

18.    Application for approval to transfer or assign licence, etc.

    (1) An application for approval to transfer or assign a licence or an instrument by which a legal or equitable interest in, or affecting, a licence is created, assigned or dealt with, shall be in Form XVII set out in the Second Schedule.

    (2) The Minister shall—

    (a)    where the Minister approves an application under sub-regulation (1), endorse the approval on the licence; and

    (b)    where the Minister rejects an application under sub-regulation (1), inform the applicant of the rejection in Form VIII set out in the Second Schedule and endorse the rejection on the licence.

19.    Application for consent to register transfer of shares in company, etc.

    (1) An application for consent to register the transfer, to any person, of any share or shares in a company that holds a licence or to enter into an agreement with any particular person, if the effect of doing so would be to give that person control of the company shall be in Form XVII set out in the Second Schedule.

    (2) A request for further information in respect of an application under sub-regulation (1) shall be in Form IV set out in the Second Schedule.

    (3) The Minister shall—

    (a)    where the Minister approves an application under sub-regulation (1), endorse the approval on the licence; and

    (b)    where the Minister rejects an application under sub-regulation (1) inform the applicant of the rejection in Form VIII set out in the Second Schedule and endorse the rejection on the licence.

    (4) Consent to an application made under sub-regulation (1) shall be in Form XVIII set out in the Second Schedule.

20.    Certificate of evidence

A certificate of evidence issued by the Minister pursuant to section 53 and sub-section (2) of section 69 of the Act shall be in Form XIX set out in the Second Schedule.

PART VI
WORK PRACTICES

21.    Application for consent to flare natural gas

    (1) An application for consent to flare natural gas shall be in Form XX set out in the Second Schedule.

    (2) Consent to flare natural gas shall be in Form XXI set out in the Second Schedule.

22.    Application for consent to drill well within, or across, certain limits of licence area boundary

    (1) An application for consent to drill a well less than one thousand metres from a boundary of the licence area shall be in Form XXII set out in the Second Schedule.

    (2) A licensee shall not drill a well from within the licence area through any vertical boundary of the licence area into another licence area without the prior written consent of the other licensee and of the Minister.

    (3) Consent to an application made under sub-regulation (1) shall be in Form XXIII set out in the Second Schedule.

    (4) The Minister shall, where the Minister rejects an application under sub-regulation (1) inform the applicant of the rejection in Form VIII set out in the Second Schedule.

    (5) For the purposes of these Regulations, a directional well drilled under a licence area from a surface location on nearby land not within the licence area shall, for all purposes of the Act, be considered to be drilled from a surface location within the licence area and, in such circumstances, the production of petroleum from the licence area through the directional well, or drilling or re-working of the directional well, shall be considered production, drilling or re-working operations, as the case may be, in the licence area.

    (6) Nothing contained in sub-regulation (5) shall be construed to grant to a licensee any leasehold interest, licence, easement, right of way or other right which such licensee is required to acquire under the Act or any other written law.

23.    Drilling practices

    (1) A licensee shall ensure that the well design and conduct of drilling operations, including the casing, cementing and plugging operations, are in accordance with these Regulations and with generally accepted practices in the international petroleum industry.

    (2) A licensee shall identify a well by name, number and geographic coordinates which shall be shown on maps, plans and similar records which the licensee is required to keep.

    (3) A licensee shall notify the Minister as soon as is practicable of any change of the name or identification number of a well in Form XXIV set out in the Second Schedule.

    (4) A licensee shall, where any work on, or drilling of, a well is discontinued for a period exceeding 30 days but less than 6 months, notify the Minister in Form XXV set out in the Second Schedule.

    (5) A licensee shall, prior to commencing any work on, or drilling, a well, or commencing work on a well on which work was discontinued for more than six months, notify the Minister in Form XXVI set out in the Second Schedule.

24.    Notice of directions in respect of illegally drilled well

A notice of directions in respect of a well drilled in contravention of the Act shall be in Form XXVII set out in the Second Schedule.

25.    Order for removal of property

An order for the removal, by a licensee, of property from land that ceases to be subject to the licence shall be in Form XXVIII set out in the Second Schedule.

26. Notice to survey well, etc.

    (1) A notice to a licensee to—

    (a)    demarcate, and keep demarcated, the production area;

    (b)    carry out a survey of the position of any well or of any structure or equipment; or

    (c)    furnish a written report of the survey carried out pursuant to paragraph (b);

shall be in Form XXIX set out in the Second Schedule.

    (2) A request for further information in respect of a report furnished pursuant to a notice given under sub-regulation (1) shall be in Form IV set out in the Second Schedule.

27.    Notice of direction to comply with conditions of licence

A notice directing a licensee to comply with the conditions of a licence shall be in Form XXX set out in the Second Schedule.

28.    Abandonment of well

    (1) An application for consent to abandon, close or plug a well shall be made in Form XXXI set out in the Second Schedule.

    (2) Consent to abandon, close or plug a well shall be in Form XXXII set out in the Second Schedule.

    (3) A licensee shall, upon receipt of the consent under sub-regulation (2), commence the abandonment operations in relation to a well:

Provided that in all cases—

    (a)    the licensee shall undertake to securely plug the well to prevent pollution and possible damage to the deposit, and shall, except as the Minister may otherwise direct, or the licence may otherwise provide, remove all equipment, materials and facilities relating thereto;

    (b)    cemented strings or other forms of casing shall not be withdrawn without the prior written approval of the Minister; and

    (c)    the licensee shall permit a representative of the Ministry responsible for Mines to observe the operations under this regulation.

    (4) The Minister shall, where the Minister rejects an application under sub-regulation (1), inform the applicant of the rejection in Form VIII set out in the Second Schedule.

29.    Construction of pipelines and related facilities

The design and construction of pipelines, pumping storage facilities and any other related facilities for the conveyance or storage of petroleum from a licence area shall be in accordance with the Act, the Energy Regulation Act and the Environmental Protection and Pollution Control Act.

30.    Measurement

    (1) A licensee shall, in accordance with the Weights and Measures Act, supply, operate and maintain equipment for measuring the volume and quality of any petroleum produced and saved pursuant to the licence, including gravity, density, temperature and pressure measuring devices and any other device for measuring the volume and quality of petroleum that may be required.

    (2) A licensee shall measure the volume and quality of the petroleum produced and saved pursuant to the licence, consistent with generally accepted practices in the international petroleum industry and in accordance with the frequency and procedures approved by the Minister.

    (3) A licensee shall give notice to the Minister, in writing, of the licensee’s intention to conduct measuring operations and the Minister may, upon receipt of the notice, be present at and supervise, either directly or through authorised persons, such operations.

31.    Notice to cease wasteful production practices, etc.

An order to cease wasteful production practices shall be in Form XXXIII set out in the Second Schedule.

PART VII
RETURNS, ACCOUNTS AND OTHER RECORDS

32.    Quarterly and annual reports

    (1) A licensee shall submit to the Director—

    (a)    on or before the 30th day of January, the 30th day of April, the 31st day of July and the 31st day of October, a report in respect of the preceding quarter in Form XXXIV set out in the Second Schedule; and

    (b)    on or before the 31st day of December of each year an annual report in Form XXXIV set out in the Second Schedule.

33.    Annual work programme

A licensee shall submit to the Director, on or before the 30th day of September of each year, a complete programme of work to be carried out during the following year, together with a detailed budget of the expenditures to be incurred for the purpose of, and incidental to, carrying out the programme of work.

34.    Daily drilling reports

    (1) A licensee shall, during the conduct of drilling operations, maintain daily drilling reports and make the reports available for inspection, at any reasonable time, by an authorised officer.

    (2) A licensee shall, within 120 days of the completion of any survey, test or drilling operation, or, in the case of data that cannot reasonably be obtained or compiled in that period, as soon as possible thereafter, submit to the Director the following data—

    (a)    geological data including—

        (i)    surface or photo-geological and sub-surface maps of the area explored;

        (ii)    stratigraphic data, including measured stratigraphic surface sections, lithological groups, information relating to the porosity and the permeability of petroleum bearing zones;

        (iii)    lithologic and paleontologic samples; and

        (iv)    summary reports of the geological data including references to the survey and processing techniques utilised;

    (b)    geophysical data including—

        (i)    seismic data, including—

            (A)    shotpoint and elevation maps;

            (B)    interpretive contour maps on critical or outstanding mapping horizons;

            (C)    seismic record sections;

            (D)    location and elevation survey notes; and

            (E)    summary reports of the seismic data, including references to the survey and processing techniques utilised;

        (ii)    gravimetric data, including—

            (A)    gravity station location and elevation maps;

            (B)    observed gravity value contour maps and any derivative maps;

            (C)    gravimetric survey notes; and

            (D)    summary reports of the gravimetric data, including references to the survey and processing techniques utilised;

        (iii)    magnetic data, including—

            (A)    station or flight line base maps;

            (B)    total intensity value maps and any derivative maps; and

            (C)    summary reports of the magnetic data including references to the survey and processing techniques utilised;

    (c)    well completion reports including—

        (i)    engineering data;

        (ii)    geological data;

        (iii)    drill stem or production test results;

        (iv)    all wireline logs, at recommended scales of 1:1000, 1:500 and 1:200;

        (v)    samples and sample descriptions; and

        (vi)    core samples, core descriptions and laboratory analyses of the same; and

    (d)    any other information that the Minister may require.

    (3) A request for further information under sub-regulation (2) shall be in Form IV set out in the Second Schedule.

35.    Records, accounts, etc. to be maintained

    (1) A licensee shall keep at the licensee’s registered office accurate records containing full particulars of the following—

    (a)    the drilling, operation, deepening, plugging or abandonment of wells;

    (b)    the strata and sub-soil through which wells are drilled;

    (c)    the casing inserted in wells and any alteration to such casing;

    (d)    any petroleum, water and other economic minerals encountered;

    (e)    the areas in which any geological or geophysical work has been carried out;

    (f)    accurate geological maps and plans, geophysical records, representative geological samples and test results; and

    (g)    any other information as may be provided in the licence or as the Director may require.

    (2) A licensee shall keep at the licensee’s registered office accurate accounts containing full particulars of the following—

    (a)    the gross quantity of any crude oil and natural gas produced and saved from the licence area;

    (b)    the grades and gravity of any crude oil produced and the composition of any natural gas produced;

    (c)    any quantities of crude oil, natural gas and sulphur, in any form, or any other minerals, gases, liquids or solids disposed of by way of sale or otherwise, the consideration received, the quantity disposed of and the name of the person to whom any such quantity was disposed;

    (d)    the quantity of crude oil, natural gas and other liquids or gases injected into a formation;

    (e)    the quantity of crude oil and natural gas consumed for drilling and other development and production operations, other than quantities reported under paragraph (d), and consumed in pumping to field storage, refineries in the Republic or the point of export;

    (f)    the quantity of crude oil refined by, or for, the licensee in the Republic;

    (g)    the quantity of natural gas treated in the Republic, by the licensee or on the licensee’s behalf, for the removal of liquids and liquefied petroleum gases and the quantity of butane, propane and any other liquids, gases or any solids obtained;

    (h)    the quantity of natural gas flared; and

    (i)    any other information as may be required by the licence or as the Minister may require.

36.    Final reports

A licensee shall, prior to the termination of a licence, or upon the relinquishment of any part of the licence area, submit to the Minister, in relation to the licence area or part thereof, copies of—

    (a)    all records which the licensee maintained pursuant to this Part;

    (b)    all plans or maps of such area which were prepared by, or on behalf of, the licensee;

    (c)    all tapes, diagrams, profiles and charts which were prepared under paragraph (b); and

    (d)    any other documents or materials as the Minister may require.

37.    Access to petroleum exploration and development information

    (1) The Director shall keep, or cause to be kept, in the Register any returns, reports, plans, data and any other information submitted to the Minister or Director under these Regulations.

    (2) The Director may, on such terms and conditions as the Minister may determine, grant any person who desires to access any document referred to in sub-regulation (1), access to that document.

38.    Enforcement notice

Subject to the Act, where an inspector has reasonable grounds to believe that a person is contravening any provisions of these Regulations or a condition of a licence, the inspector shall serve an enforcement notice on that person, in Form XXXV set out in the Second Schedule.

PART VIII
GENERAL PROVISIONS

39.    Penalty

A person who contravenes any provision of these Regulations commits an offence and is liable, upon conviction, to a fine not exceeding three hundred thousand penalty units or to imprisonment for a period not exceeding three years, or to both.

40.    Fees and surface rentals

The fees and surface rentals set out in Part I of the First Schedule shall be payable in respect of the matters specified therein.

41.    Royalty and production fee

    (1) A royalty or production fee shall be payable at the rates prescribed in Part II of the First Schedule in respect of the annual gross production of—

    (a)    crude oil produced from a well in a licence area; and

    (b)    natural gas produced from a well in a licence area.

    (2) The royalty or production fee referred to under sub-regulation (1) shall be paid within 30 days of the end of each quarter.

42.    Terms and conditions of licences

The terms and conditions on which a licence may be granted under the Act are as set out in the Third Schedule.

FIRST SCHEDULE

[Regulations 40 and 41]

PRESCRIBED FEES

PART I
FEES AND SURFACE RENTALS

Fee Units

1.

Fees for inspection of the Register

—    for general search and examination of the Register

3000

—    for the supply of a copy of, and entry on, the Register

5,278

2.

Application fee for petroleum exploration licence and its renewal

26,389

3.

Application fee for a development and production licence

52,778

4.

Annual licence fee (exploration)

300,000

5.

Annual licence fee (production)

1,019,444

6.

Surface rentals

—    Initial exploration period per square kilometer or kwacha equivalent

53

—    first renewal period per square kilometer or kwacha equivalent

106

—    second renewal period per square kilometer or kwacha equivalent

158

—    annual surface rentals for a licence area during the production period (per square kilometer or part thereof)

26,389

PART II
ROYALTY OR PRODUCTION PAYMENT

1.    Crude oil—

    at a rate of not less than twelve and a half per cent (12.5%) of the wellhead value.

2.    Natural gas—

    at a rate of not less than five per cent (5%) of the wellhead value.

NOTE:

    Foreign nationals and foreign companies, or persons and entities under effective foreign control, shall pay the prescribed fees and surface rentals in United States dollars.

SECOND SCHEDULE

[Regulations 4, 6(3), 8, 9(2), 10(2), 10(3), 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22(1), 22(3), 22(4), 23(3), 23(4), 23(5), 24, 25, 26, 27, 28(1), 28(2), 28(4), 31, 32, 34(3) and 38]

PRESCRIBED FORMS

Form I

[Regulation 4]

(To be completed in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

BID FOR ISSUE OF PETROLEUM EXPLORATION LICENCE

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Prospecting licence for Block No.

2.

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

Individual

Partnership

Company

Partnership

NGO

    (c)    Company Registration No.

    (d)    TPIN No.

3.

Business address

4.

Licences or rights held, in Zambia, if any, by applicant, issued under the Petroleum (Exploration and Production) Act, 2008 (give details)

5.

Current licences held, in Zambia, if any, by subsidiary companies issued under the Petroleum (Exploration and Production) Act, 2008

6.

Have you ever applied for a licence in Zambia under the Petroleum (Exploration and Production) Act, 2008? If yes, please give details below:

Licence applied for

Location (Including coordinates)

Date of application

Status of application (Granted, rejected or pending)*

*If any application was rejected, give reasons for rejection ………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………………..

7.

Have you been convicted of an offence involving dishonesty or of any other offence under the Petroleum (Exploration and Production) Act, 2008, or any other law within or outside Zambia?

8.

If yes, specify details: …………………………………………………………………………………………………………………………….

Nature of offence: …………………………………………………………………………………………………………………………………

Date of conviction: …………………………………………………………………………………………………………………………………

Sentence: ……………………………………………………………………………………………………………………………………………

9.

Area applied for (all coordinates in exact multiples of 5 minutes, latitude/longitude format, Degree-Minute-Second format, are 1950)

(a)    Location

Province

District

Locality

(b)    Initial area size (in sq. km)

(c)    Proposed area for application (in sq. km)

(d)    Coordinators

Latitudes (S)

Longitudes (S)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

Corner

10

Corner

11

Corner

12

Corner

13

Corner

14

Corner

15

Corner

16

Corner

17

Corner

18

Corner

19

Appendices

Appendix No. 1

Particulars of technical qualifications and industrial experience of bidder and key employees

Appendix No. 2

Photocopy of national registration card, where applicant is an individual

Appendix No. 3

Report on execution of past operations programme, training and employment of Zambians, execution of local business development program, where applicable

Appendix No. 4

Statement of relinquishment on renewal, where applicable

Appendix No. 5

The particulars of the financial resources available to the bidder including capital credit facilities and guarantees available as evidence of the bidder’s ability to finance the proposed work

Appendix No. 6

Audited financial statements and annual reports for the last three years, where applicable

Appendix No. 7

Proposed programme of exploration operations and the estimated cost of the proposed exploration operation

Appendix No. 8

Environmental Commitment Plan

Appendix No. 9

Evidence showing the Power of Attorney with ability to sign on behalf of the bidder company

Bid fee receipt number

Name:

Signature of bidder (individual or authorised company representative):

To be signed by authorised officer

Name

Signature

NOTE:
In the case that the bidder is a company established under foreign laws, the evidence required under the above items must also be accompanied by a verification issued by the office in Zambia of the embassy, high commission, legation or consular office of the country of its establishment, or issued by notary public or, if there is no notary public in the country established issued by a person having same powers and duties as the notary public.

Form II

[Regulation 6(3)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF REJECTION OF BID

(1) Here insert the full names and address of applicant

TO (1) ………………………………………………………………………………………….

……………………………………………………………………………………………………

IN THE MATTER OF (2) …………………………………………………………………… you are hereby notified that your bid for (3) ……………………………………. has been rejected on the following grounds:

(2) Here insert reference No. of application

    (a)    ……………………………………………………………………………………….

    (b)    ……………………………………………………………………………………….

(3) Here insert type of application

    (c)    ……………………………………………………………………………………….

    (d)    ……………………………………………………………………………………….

Dated this …………… day of ……………………. 20……..

………………………………………….
Minister

Form III

[Regulations 8 and 9(1)]

(To be completed in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION FOR PETROLEUM EXPLORATION LICENCE/PETROLEUM DEVELOPMENT AND PRODUCTION LICENCE

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Prospecting licence for Block No.

2.

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

    (c)    Company Registration No.

    (d)    TPIN No.

Individual

Partnership

Company

Partnership

NGO

3.

Business address

4.

Licences or rights held, in Zambia, if any, by applicant, issued under the Petroleum (Exploration and Production) Act, 2008 (give details)

5.

Current licences held, in Zambia, if any, by subsidiary companies issued under the Petroleum (Exploration and Production) Act, 2008

6.

Have you ever applied for a licence in Zambia under the Petroleum (Exploration and Production) Act, 2008? If yes, please give details

7.

Have you been convicted of an offence involving dishonesty or of any other offence under the Petroleum (Exploration and Production) Act, 2008, or any other law within or outside Zambia?

If yes, specify details: …………………………………………………………………………………………………………………………….

Nature of offence: …………………………………………………………………………………………………………………………………

Date of conviction: …………………………………………………………………………………………………………………………………

Sentence: ……………………………………………………………………………………………………………………………………………

8.

Area applied for (all coordinates in exact multiples of 5 minutes, latitude/longitude format, Degree-Minute-Second format, are 1950)

(a)    Location

Province

District

Locality

(b)    Initial area size (in sq. km)

(c)    Proposed area for application (in sq. km)

(d)    Coordinates

Latitudes (S)

Longitudes (S)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

Corner

10

Corner

11

Corner

12

Corner

13

Corner

14

Corner

15

Corner

16

Corner

17

Corner

18

Corner

19

9.

Appendices

(a)    Petroleum Exploration Licence

Appendix No. 1

Photocopy of national registration card in the case of an individual

Appendix No. 2

Report on execution of past operations programme, training and employment of Zambians, execution of local business development programme, where applicable

Appendix No. 3

Statement of relinquishment on renewal, where applicable

Appendix No. 4

Particulars of technical qualifications and industrial experience of bidders and key employees

Appendix No. 5

Particulars of the financial resources available to the bidder including capital credit facilities and guarantees available as evidence of the bidder’s ability to finance the proposed work

Appendix No. 6

Audited financial statements and annual reports for the last three years, where applicable

Appendix No. 7

Proposed programme of exploration operations and the estimated cost of the proposed exploration operation

Appendix No. 8

Environmental Commitment Plan

Appendix No. 9

Evidence showing the Power of Attorney with ability to sign on behalf of the bidder company

(b)    Petroleum Development and Production

Appendix No. 1

Full information as to the applicant’s financial status, technical competence and experience

Appendix No. 2

The number of the applicant’s exploration licence, if applicable

Appendix No. 3

The form of petroleum which it is intended to produce

Appendix No. 4

A comprehensive report of the petroleum deposit, which report shall include a description of the petroleum reservoir or deposit, the form of the petroleum and an estimate of the petroleum reserves

Appendix No. 5

Details, illustrated by an approved plan, of the area in respect of which the application is made

Appendix No. 6

A technological report on production and processing operations should include the date by which the applicant intends to work for profit; the capacity of production and scale of operations; the estimated overall recovery of petroleum and by-products; the nature of the petroleum and by-products; the marketing arrangements made for the sale of the petroleum and by-products; and a detailed programme for the progressive reclamation and rehabilitation of lands disturbed by petroleum extraction and for the minimisation of the effect of such extraction on adjoining land or water area.

Appendix No. 7

A detailed forecast of capital investment, operating costs and sales revenues and the anticipated type and source of financing

Appendix No. 8

Proposals with respect to the employment and training of Zambian citizens

Appendix No. 9

A report of the goods and services required for the production and processing operations which can be obtained within Zambia and the applicant’s intention in relation thereto

Appendix No. 10

Details of expected infrastructure requirements

Appendix No. 11

A resettlement plan

Application fee receipt number

Name of applicant (individual or authorised company representative): …………………………………………………………

Signature …………………………………………………….. Date ………………………………………………………

FOR OFFICIAL USE ONLY

Received by ………………………………………………………….

Date …………………………………………………….

Officer

Signature …………………………………………………………….

STAMP

Form IV

[Regulations 9(2) and 34(3)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

REQUEST FOR FURTHER INFORMATION

To: ……………………………………………………………………………………………………………………….

Address:    ……………………………………………………………………………………………………………….

……………………………………………………………………………………………………………………………

Reference No.: ………………………………………………………………………………………………………..

You are hereby requested to furnish the following information or documents in respect of your application for ………………………………………………….

    (a)    ……………………………………………………………………………………………………………….

    (b)    ……………………………………………………………………………………………………………….

    (c)    ……………………………………………………………………………………………………………….

    (d)    ……………………………………………………………………………………………………………….

within ………………….. days of this notice. If you fail to furnish the requested information within the stipulated period, your application will be treated as invalid and shall be rejected.

Dated this ……………. day of …………………………… 20……..

……………………………………….
Minister

Form V

[Regulation 10(2)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

LICENCE NO. …………….

PETROLEUM EXPLORATION LICENCE

(Section 13 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

Holder’s name ………………………………………………………………………………………………………..

Address    ……………………………………………………………………………………………………………….

The petroleum exploration block area shall be the area described in the Schedule and annexed hereto and bordered ……………………………………………………………………………………….. on the Plan.

The licence relates to hydrocarbons.

The licence is granted for a period of ………………… commencing on the ………………… day of ………………… in respect of Block No.(s) …………………

The conditions of grant of the licence are as shown in the Annexures attached hereto.

Issued at ………………………. this ………… day of ………………… 20…….

……………………………………….
Minister

ENDORSEMENT OF REGISTRATION

This Petroleum Exploration Licence has this ………….. day of ………………. been entered in the Register.

Renewals, Rejections, Transfers or Amendments

Date of renewal, rejection, transfer or amendment

Details of renewal, rejection, transfer or amendment

Date of registration and registration No.

Signature of Minister

Form VI

[Regulation 10(3)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

LICENCE NO. …………….

PETROLEUM DEVELOPMENT AND PRODUCTION LICENCE

(Section 34 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

Holder’s name ………………………………………………………………………………………………………..

Address ……………………………………………………………………………………………………………….

The Petroleum Development and Production area shall be the area described in the Schedule and annexed hereto and bordered ……………………………………………………………….. on the Plan.

The licence is granted for a period of …………………………………………………… commencing on the …………………………………………….. day of …………………………………………….. in respect of Block No.(s) ……………………………….

The conditions of grant of the licence are as shown in the Annexures attached hereto.

Issued at …………………….. this ……………… day of…………………. 20……….

……………………………………….
Minister

ENDORSEMENT OF REGISTRATION

This Petroleum Development and Production Licence has this ………………….. day of ……………… been entered in the Register.

Form VII

[Regulations 11 and 13(2)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF INTENTION TO REJECT APPLICATION

(1) Here insert the full names and address of applicant

To (1) …………………………………………………………………………………………………… IN THE MATTER OF (2) ……………………………………………….. you are hereby notified that I intend to reject your application for (3) …………………………….. on the following grounds:

(2) Here insert reference No. of the application

    (a)    ……………………………………………………………………………………….

    (b)    ……………………………………………………………………………………….

(3) Here insert type of application

    (c)    ……………………………………………………………………………………….

    (d)    ……………………………………………………………………………………….

Accordingly, you are requested to Delete as appropriate*appear before me on the …………………. day of ………………………………………………. at the Ministry of Mines and Minerals Development, Government Complex, Lusaka, to show cause why your application should not be rejected/take remedial measures to address the concerns raised aboveDelete as appropriate* before the …………….. day of ………………………….

If you fail to appear or take remedial measures before the stipulated date, your application will be treated as invalid and rejected.

Dated this ………………. day of ……………………… 20……..

…………………………………………..
Minister

Form VIII

[Regulations 12, 13(3), 15(2), 18(2), 19(3) and 22(4)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF REJECTION OF APPLICATION

To: ………………………………………………………………………………………………………………………

Address:    ……………………………………………………………………………………………………………….

Reference No.: ………………………………………………………………………………………………………..

You are hereby notified that your application for ………………………………………………………………

………………………………………………………………….. has been rejected on the following grounds:

    (a)    ………………………………………………………………………………………………………………

    (b)    ………………………………………………………………………………………………………………

    (c)    ………………………………………………………………………………………………………………

    (d)    ………………………………………………………………………………………………………………

Dated this …………. day of …………….. 20…..

……………………………………….
Minister

Form IX

[Regulation 13(1)]

(To be filled in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION FOR RENEWAL OF A PETROLEUM EXPLORATION/PETROLEUM DEVELOPMENT AND PRODUCTION LICENCE

Licence No. …………………………………

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Prospecting licence for Block No.

2.

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

Individual

Partnership

Company

Partnership

NGO

3.

Business address

4.

Previously held petroleum rights or licences in Zambia, if any

5.

Area applied for (all coordinates in exact multiples of 6 seconds, latitude/longitude format, Degree-Minute-Second format, are 1950)

(a)    Location

Province

District

Locality

(b)    Initial area size (in sq. km)

(c)    Proposed area for application (in sq. km)

(d)    Coordinates

Latitudes (S)

Longitudes (S)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

Corner

10

Corner

11

Corner

12

Corner

13

Corner

14

Corner

15

Corner

16

Corner

17

Corner

18

Corner

19

6.

Appendices

    (a)    Report on execution of past operations programme, training and employment of Zambians, execution of local business development programme, where applicable

    (b)    Statement of relinquishment on renewal, where applicable

Application fee receipt number

Name:

Signature of applicant (individual or authorised company representative):

To be signed by Applicant and Geological Survey Department officer Name:

Signature of officer:

STAMP

Form X

[Regulation 14]

(To be filled in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

COMMERCIAL VIABILITY PROJECTION

Licence No. ……………………………..

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

    (a)    Name(s) of licensee

    (b)    Type of licensee

Individual

Partnership

Company

Partnership

NGO

2.

Business address

3.

Area of proposed delineation (all coordinates in exact multiples of 5 minutes, latitude/longitude format, Degree-Minute-Second format, are 1950)

(a)    Location

Province

District

Locality

(b)    Initial area size (in sq. km)

(c)    Proposed area for application (in sq. km)

(d)    Coordinates

Latitudes (S)

Longitudes (S)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

Corner

10

Corner

11

Corner

12

Corner

13

Corner

14

Corner

15

Corner

16

Corner

17

Corner

18

Corner

19

4.

Appendices

Appendix No. 1

A detailed report accompanied by supporting data and all analyses and interpretations thereof, which demonstrates that the area described in paragraph 3(a) contains, alone or in conjunction with other areas, as the case may be, a commercial discovery

Appendix No. 2

Report on execution of past operations programme, training and employment of Zambians and execution of local business development programme, where applicable

Appendix No. 3

The nature of the subsoil in which the petroleum occurs and the depth of the discovery

Appendix No. 4

The quantity of petroleum in the petroleum reservoir to which the discovery relates, or if part only of that petroleum reservoir is within the exploration area, in that part of the reservoir which is within the exploration area

Appendix No. 5

Full information as to the licensee’s current financial status, technical competence and experience

Appendix No. 6

Detailed proposals for the construction, establishment and operation of all facilities and services for and incidental to the development, extraction, production, storage, transportation, sale and other disposal of petroleum; and a proposed timetable for the commencement of petroleum production

Appendix No. 7

A detailed forecast of capital investment requirements, operating costs and sales revenues and the anticipated type and source of financing

Application fee receipt number

Name

Signature of applicant (individual or authorised company representative):

FOR OFFICIAL USE ONLY

Geological Survey Department officer

Name:

Signature of officer:

STAMP

Form XI

[Regulation 15(1)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION TO AMEND PROGRAMME OF EXPLORATION OPERATIONS

Licence No. ……………………………..

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Holder of licence

2.

Expiry date

3

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

Individual

Partnership

Company

Partnership

NGO

    (c)    Business address

4.

Proposed amendments

(a)

(b)

(c)

(d)

(e)

5.

Appendices

Appendix No. 1

Justifications for proposed amendments

Appendix No. 2

Record of company board meeting and resolutions

Appendix No. 3

Commitment plan to review the Environmental Commitment Plan

Receipt number

Name

Signature of applicant (individual or authorised company representative):

To be signed by authorised officer

Name:

Signature of officer:

STAMP

Form XII

[Regulation 16(1)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF INTENTION TO RELINQUISH AREA

To the Minister

(1) ………………………………………………………………………………………….

………………………………………………………………………………………………

(1) Here insert the full names and address of licensee

IN THE MATTER OF (2) ………………………………….. do hereby notify your office that I intend to relinquish the following areas:

    (a)    ……………………………………………………………………………………..

(2) Here insert the licence No. of the licence which covers area to be relinquished

    (b)    ………………………………………………………………………………………

    (c)    ………………………………………………………………………………………

    (d)    ………………………………………………………………………………………

On the grounds set out in my application and attached to this notice.

Dated this …………… day of ……………………… 20…….

(3) ……………………………………………
Licensee

FOR OFFICIAL USE ONLY

Received by: …………………………. Date Received: …………………………
Name

Signature: STAMP

Form XIII

[Regulation 16(2)]

(To be filled in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION TO RELINQUISH AREA

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Petroleum Exploration/Petroleum Development and Production Licence No.

2.

Hydrocarbons

3.

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

Individual

Company

Co-operative

Partnership

NGO

    (c)    Business address

4.

Area applied for relinquishment (all coordinates in exact multiples of 5 minutes, latitude/longitude format, Degree-Minute-Second format, are 1950)

    (a)    Original size (in sq. km.)

(b)    Proposed relinquishment area (in sq. km)

(c)    Proposed date of relinquishment

(d)    Coordinates

Latitudes (S)

Longitudes (S)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

(e)    Reasons for relinquishment

5.

Appendices

Appendix No. 1

Full particulars of the petroleum operations carried out in the area to be relinquished

Appendix No. 2

An undertaking by the licensee that, prior to the effective date of such relinquishment, the licensee shall carry out all clean-up operations and render the area safe and in a condition which is in accordance with accepted practices in the international petroleum industry

Application fee receipt number

Name

Signature of applicant (individual or authorised company representative): ………………………………. Date: ……………………………

FOR OFFICIAL USE ONLY

Geological Survey Department officer

Received by: ………………………………………………………

(Name)

Signature of officer: …………………………………………….

STAMP

DECLARATION

I/We declare that prior to the effective date of the relinquishment, I/we shall carryout all the clean-up operations and render the area safe and in a condition which is in accordance with accepted practices in the International Petroleum Industry.

Declared at ………….. this ………….. day of ………………….. 20……… by the following persons who are duly authorised to sign for and on behalf of the applicant under the authority of the Power of Attorney or Board Resolution which is hereby attached.

Form XIV

[Regulation 16(3)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

CERTIFICATE OF RELINQUISHMENT OF AREA

(Section 20 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

(1) Here insert the full names and address of licensee

I hereby certify that (1) …………………………………………………………………….

Address ………………………………………………………………………………………..

Delete as appropriate*Petroleum Exploration Licence/Petroleum Development and Production Licence No. (2) ……………………….. has relinquished the following areas which are subject to the stated Licence:

(2) Here insert the licence No. of the licence which covers area to be relinquished

    (a)    ……………………………………………………………………………………….

    (b)    ……………………………………………………………………………………….

    (c)    ……………………………………………………………………………………….

    (d)    ……………………………………………………………………………………….

Licence No. ………………………………….. is amended accordingly.

Issued at ……………… this ………………. day of ………………. 20…………

…………………………………………..
Minister

Form XV

[Regulation 17(1)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF INTENTION TO SUSPEND OR CANCEL LICENCE

To (1) ………………………………………………………………………………………

………………………………………………………………………………………………

(1) Here insert the full names and address of licensee

………………………………………………………………………………………………

IN THE MATTER OF (2) ……………………………………. you are hereby notified that I intend to Delete as appropriate*suspend/cancel your Delete as appropriate*petroleum exploration licence/petroleum development and production licence on the following grounds:

(2) Here insert the licence No.

    (a)    ……………………………………………………………………………………

(3) Here insert the number of days stipulated (should not be less than thirty days)

    (b)    ……………………………………………………………………………………

    (c)    ……………………………………………………………………………………

    (d)    ……………………………………………………………………………………

(4) Signature of Minister

Accordingly, you are requested to take action to remedy the breaches set out in paragraphs ……………….. (above) within (3) ……………… days of receiving this notice. Failure to remedy the said breaches shall result in the Delete as appropriate*suspension/cancellation of your licence.

Dated this …………… day of ……………………… 20……….

(4) ……………………………………………
Minister

Form XVI

[Regulation 17(2)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF SUSPENSION OR CANCELLATION OF LICENCE

(1) Here insert the full names and address of licensee

To (1) ……………………………………………………………………………………………

……………………………………………………………………………………………………

……………………………………………………………………………………………………

(2) Here insert the licence No.

IN THE MATTER OF (2) ……………………………… you are hereby notified that your Delete as appropriate*petroleum exploration licence/petroleum development and production licence has been Delete as appropriate*suspended/cancelled on the following grounds:

(3) Signature of Minister

    (a)    ………………………………………………………………………………………..

    (b)    ………………………………………………………………………………………..

    (c)    ………………………………………………………………………………………

    (d)    ………………………………………………………………………………………

Dated this ……………. day of ………….. 20……..

(3) …………………………………………..
Minister

Form XVII

[Regulations 18(1) and 19(1)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION FOR CONSENT TO Delete as appropriate*TRANSFER OR ASSIGN LICENCE/TRANSFER SHARES IN COMPANY/ENTER INTO AGREEMENT TO TRANSFER CONTROL OF COMPANY

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Petroleum Exploration Licence/Petroleum Development and Production Licence No.

2.

Current holder

3.

    (a)    Name(s) of assignee(s)

    (b)    Type of assignee

Individual

Company

Co-operative

Partnership

NGO

4

Assignee’s address

Tel:

Fax:

E-mail:

Appendices

Appendix No. 1

Minutes of relevant meeting

Appendix No. 2

Resolution of relevant meeting

Appendix No. 3

Reasons for transferring or assigning shares/entering into agreement

Appendix No. 4

Copy of Agreement

Name of applicant (individual or authorised company representative): ………………………………………………..

Date: …………………………….

Signature: ………………………

FOR OFFICIAL USE ONLY

Received by: …………………………………………………..

RECEIPT NO. …………………………………….

Officer

Amount received: ………………………………………………….

Serial No. of application: ………………………………………….

STAMP

Form XVIII

[Regulation 19(4)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

CONSENT TO TRANSFER SHARES IN COMPANY/ENTER
AGREEMENT TO TRANSFER CONTROL OF COMPANY

(1) Here insert the full names and address of licensee

TO (1) …………………………………………………………………………………………..

……………………………………………………………………………………………………

……………………………………………………………………………………………………

(2) Here insert the application reference No.

(3) Here insert the name of company

IN THE MATTER OF (2) ………………………………………………………….. you are hereby notified that your application for consent to *Delete as appropriate*transfer shares in (3) ……………………………………………………………………… to enter into an agreement entitled (4) …………………………………. to transfer control in (5) ………………………………………………….. (a copy of which is annexed to this consent) has been approved. The conditions of the grant of the consent are shown in the Annexures attached hereto.

(4) Here insert title of agreement

Dated this ……….. day of ……………………….. 20………

(5) Here insert the name of the company

(6) …………………………………………..
Minister

(6) Signature of Minister

Form XIX

[Regulation 20]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

CERTIFICATE OF EVIDENCE

(Section 53 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

I hereby certify that—

    (a)    Licence No. ……………. being a Petroleum Exploration Licence/a Petroleum Development and Production Licence No. …………………….. was granted, transferred, suspended or cancelled on or with effect from the date specified in the Certificate;

    (b)    *Delete as appropriate*Block No. ……………. in respect of which Licence No. ………………………… being a Delete as appropriate*Petroleum Exploration Licence/a Petroleum Development and Production Licence which was issued on the ………….. day of …………………. was, on the …………… day of ……………………., subject to the said Licence;

    (c)    Delete as appropriate*Certificate of surrender No. …………………………………………. in respect of block No. …………………………………… was issued on the date specified in the Certificate;

    (d)    Delete as appropriate*………………………. was on the ………………… day of ………………………… the registered holder of Licence No. ………………….. being a Delete as appropriate*Petroleum Exploration Licence/Petroleum Development and Production Licence;

    (e)    *Delete as appropriate*On the ……………………… day of ……………………. a direction to (1) ………………… was given to (2) ………………….; and

    (f)    Delete as appropriate*On the ……………………………………………. day of ……………………………….. a condition to/that ……………………………………………………………………….. Delete as appropriate*was part of Licence No. ……………………………………………………………………………………. being a Delete as appropriate*Petroleum Exploration Licence/a Petroleum Development and Production Licence issued to (3) ……………………………………….. Delete as appropriate*is a condition on which a certificate of surrender/or in which the consent or approval to ………………………… was issued or granted.

Dated this ………… day of ………………………. 20…….

………………………………………….
Minister

    (1) Insert nature of direction

    (2) Insert name and address of person to whom the direction was given

    (3) Insert name and address of licensee

Form XX

[Regulation 21(1)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION FOR CONSENT TO FLARE NATURAL GAS

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Petroleum Exploration Licence/Petroleum Development and Production Licence No.

2.

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

Individual

Company

Co-operative

Partnership

NGO

3.

Assignee’s address

Tel:

Fax:

E-mail:

4.

Name of gas to be flared

5.

Area in which gas is to be flared

6.

Reasons for flaring gas

7.

Period in which gas is to be flared

8.

Application fee receipt number

Name:

Signature of applicant (individual or authorised company representative):

FOR OFFICIAL USE ONLY

Geological Survey Department officer

Received by: ……………………………………………………..

(Name)

Signature of officer:

STAMP

Form XXI

[Regulation 21(2)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

CONSENT TO FLARE NATURAL GAS

(Section 54 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

Holder’s name ………………………………………………………………………………………………………

Address ………………………………………………………………………………………………………………

This consent permits the holder to flare …………….. a natural gas in …………………. (area/location) for a period of ………….. days commencing on the ………… day of ……………. 20……… Petroleum Exploration/Petroleum Development and Production Licence No. ………………….

The conditions of the grant of the consent are shown in the Annexures attached hereto.

Issued at ……………………… this …………. day of ………………….. 20……..

……………………………………..
Minister

Form XXII

[Regulation 22(1)]

(To be filled in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION FOR CONSENT TO DRILL WELL LESS THAN ONE THOUSAND METRES
FROM LICENCE AREA BOUNDARY

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Petroleum Exploration/Petroleum Development and Production Licence No.

2.

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

Individual

Company

Co-operative

Partnership

NGO

3.

Applicant’s address

Tel:

Fax:

E-mail:

4.

Name and number of well

5.

    (a)    Location in which well is to be drilled

Locality

Town

    (b)    Block in which well is to be drilled

District

Province

(Coordinates)

Latitudes (S)

Longitudes (E)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

    (c)    Boundary near which the well is to be drilled

(Coordinates)

Latitudes (S)

Longitudes (E)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

    (d)    Geographical coordinates of proposed well

    (e)    reasons for drilling well near boundary cited

6.

Appendices

Appendix No. 1

Design of well

Appendix No. 2

Sketch map showing proposed location of well. If the well is to be drilled into another licence area, the written consent of the other licensee should be attached.

Receipt number

Name:

Signature of applicant (individual or authorised company representative): Date:

FOR OFFICIAL USE ONLY

Geological Survey Department officer

Received by: ………………………………………………….

(Name)

Signature of officer:

STAMP

Form XXIII

[Regulation 22(3)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

CONSENT TO DRILL WELL LESS THAN ONE THOUSAND
METRES FROM LICENCE AREA BOUNDARY

(Section 57 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

Delete as appropriate*Petroleum Exploration/Petroleum Development and Production Licence No. …………………….

Holder’s name ……………………………………………………………………………………………………

Address ……………………………………………………………………………………………………………

This consent permits the holder to drill a well named ……………………………………………………

Within one thousand metres of the following boundary …………………………………………………..

……………………………………………………………………………………………………………………….
                                                (coordinates)

Situate in ……………………….. of the ………………………………. district of the ……………………..
                    (Town)

…………………………….. Province.

The conditions of grant of the consent are as shown in the Annexures attached hereto.

Issued at …………………… this …………. day of …………………… 20………..

……………………………….
Minister

Form XXIV

[Regulation 23(3)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTIFICATION TO CHANGE NAME/IDENTIFICATION NO. OF WELL

Licence No.

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Holder of licence

2.

Expiry date

3.

    (a)    Name(s) of applicant(s)

    (b)    Type of applicant

Individual

Company

Co-operative

Partnership

NGO

4.

Applicant’s address

Tel:

Fax:

E-mail:

5.

    (a)    Current name of well

Proposed name

    (b)    Location of well

Locality

Town

District

Province

    (c)    Current identification No. of well

Proposed Number

    (d)    Coordinates of well

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

6.

Appendices

Appendix No. 1

Justifications for proposed change

Appendix No. 2

Record of company board meeting and resolutions (if any) at which decision to change the name/identification No. was made

Receipt number

Name:

Signature of applicant (individual or authorised company representative):

To be signed by authorised officer

Name:

Signature of officer:

Form XXV

[Regulation 23(4)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE TO DISCONTINUE WORK ON A WELL FOR A PERIOD
EXCEEDING THIRTY DAYS BUT LESS THAN SIX MONTHS

(1) Here insert the full names and address of licensee

To the Minister

I (1) ………………………………………………………………………………………………..

IN THE MATTER OF (2) ……………………………………………….. hereby notify your office that on the ………………….. day of ……………………… I intend to discontinue work in respect of the following well(s):

(2) Here insert the licence No. appearing on the licence issued in respect of the area in which the well is located

Name of well Identification No. Location Coordinates

(a) …………….. ……………………… ………………….. ……………………….

(b) …………….. ……………………… ………………….. ……………………….

(c) …………….. ……………………… ………………….. ……………………….

(d) …………….. ……………………… ………………….. ……………………….

more particularly delineated and described in the map(s) attached to this notice on the following grounds:

(a) ……………………………………………………………………………………………….

(3) Signature of licensee

(b) ……………………………………………………………………………………………….

(c) ……………………………………………………………………………………………….

(d) ……………………………………………………………………………………………….

Dated this …………… day of ……………………… 20………..

(3) …………………………………………..
Licensee

FOR OFFICIAL USE ONLY

Received by ……………………………………………

Date Received ………………………

Received ………………………………………………..

Name

STAMP

Signature:

Form XXVI

[Regulation 23(5)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF INTENTION TO COMMENCE Delete as appropriate*WORK ON WELL WHICH WAS
DISCONTINUED/PETROLEUM EXPLORATIONS

Notice No. ……………….

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Petroleum Exploration/Petroleum Development and Production Licence No.

2.

    (a)    Names of notifier

Individual

Partnership

Company

Partnership

NGO

    (b)    Type of notifier

3.

Modifier’s address

Tel:

Fax:

E-mail:

4.

Details of well

Name of well

Identification No. of well

5.

Location of well

(a) Town

(b) District

(c) Province

Coordinates

Latitudes (S)

Longitudes (S)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

Corner

10

Corner

11

Corner

12

Corner

13

Corner

14

Corner

15

Corner

16

Corner

17

Corner

18

Corner

19

6.

Elevation above sea level

7.

(a) Date of discontinuance

(b) Reasons for discontinuance (in brief)

8.

Appendices (To be provided only where work was discontinued fer more than six months)

Appendix No. 1

A detailed report on the drilling technique to be employed (should include an estimate of the time to be taken to complete the drilling; the depth objective; the material to be used and the safety measures to be employed in drilling the well)

Appendix No. 2

A summary of the geological and geophysical data, any interpretations thereof, on which the licensee made the decision to drill the well in the particular location

Receipt number

Name ………………………………………………. Date ………………………….

Signature of applicant (individual or authorised company representative): ……………………………………………………

FOR OFFICIAL USE ONLY

Received by (Name): ……………………………..

Name:

Signature of officer:

STAMP

Form XXVII

[Regulation 24]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF DIRECTIONS IN RESPECT OF WELL DRILLED IN CONTRAVENTION OF SECTION 57(1) OF THE PETROLEUM (EXPLORATION AND PRODUCTION) ACT, NO. 10 OF 2008

To (1) ……………………………………………………………………………………………..

(1) Here insert the full names and address of licensee

……………………………………………………………………………………………………..

IN THE MATTER OF (2) ………………………………………………………….. You are hereby notified that you drilled a well in contravention of section 57(1) of the Petroleum (Exploration and Production) Act, No. 10 of 2008. Consequently, you are hereby directed to take the following action(s) before the …………………. day of ……………

(2) Here insert the licence No. appearing on the licence issued in respect of the area in which the well is located

    Delete as appropriate*(a)    plug the well;

    Delete as appropriate*(b)    close the well; or

    Delete as appropriate*(c)    comply with the following conditions in respect of the drilling or maintenance of the well:

    (i)    ………………………………………………………………………………………………

(3) Signature of Minister

    (ii)    ………………………………………………………………………………………………

    (iii)    ………………………………………………………………………………………………

    (iv)    ………………………………………………………………………………………………

A failure, by yourself, to comply with the directions specified constitutes an offence in terms of section 57(3) of the Act, for which you may be prosecuted.

Dated this ……………… day of ………………………………… 20…..

(3) ………………………………..
Minister

Form XXVIII

[Regulation 25]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

ORDER FOR REMOVAL OF PROPERTY

(Section 58 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

(1) Here insert the full names and address of licensee

To (1) …………………………………………………………………………………………..

…………………………………………………………………………………………………..

(2) Here insert the licence No. appearing on the licence issued in respect of the area in which the well is located

IN THE MATTER OF (2) …………………………………………………………. whereas Block(s) ………………………………………………………. in respect of which licence No. ………………………………………… was issued have ceased/ceased on the …………………………….. day of ……………………………. to be subject to the said licence, YOU ARE HEREBY ORDERED to take the following action by the …………………….. day of ………………………………:

    Delete as appropriate*(a)    cause to be removed from the land any plant brought onto, or erected upon, the land in the course of Delete as appropriate*exploration/development and production, operations carried out under the licence;

(3) Signature of Minister

    Delete as appropriate*(b)    plug or close off, all wells in that area; and

    Delete as appropriate*(c)    make provision for the conservation and protection of the natural resources in that area.

Any failure, by yourself, to comply with the directions specified constitutes an offence in terms of section 58(1) of the Act, for which you may be prosecuted.

Dated this …………. day of …………………… 20…….

(3) ………………………………..
Minister

Form XXIX

[Regulation 26(1)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE OF DIRECTIONS UNDER SECTION 60 OF THE PETROLEUM
(EXPLORATION AND PRODUCTION) ACT, NO. 10 OF 2008

To (1) …………………………………………………………………………………………….

(1) Here insert the full names and address of licensee

……………………………………………………………………………………………………..

IN THE MATTER OF (2) …………………………………………………………….. you are hereby directed to take the following action(s) before the …………………… day of …………………………

(2) Here insert the licence No. appearing on the licence issued in respect of the area in which the well is located

    *(a)    demarcate and keep demarcated the production area and before the date set out above to submit, to my office, a diagram of the production area. (The manner in which the area is to be demarcated and kept demarcated is set out in the annexure hereto);

    *(b)    carry out a survey of the position of the well named …………… bearing identification No. …………./*carry out a survey of the position of the following structure or equipment:

    (i)    ………………………………………………………………………………………………

(3) Signature of Minister

    (ii)    ………………………………………………………………………………………………

    (iii)    ………………………………………………………………………………………………

(iv) ………………………………………………………………………………………………

    *(c)    furnish my office with a report of the survey conducted pursuant to this notice.

Any failure, by yourself, to comply with the directions specified constitutes an offence in terms of section 58(1) of the Act, for which you may be prosecuted.

Dated this ………….. day of ……………… 20……

(3) ………………………………..
Minister

Form XXX

[Regulation 27]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

NOTICE TO COMPLY WITH CONDITIONS OF LICENCE

(Section 68 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

(1) Here insert the full names and address of licensee

To (1) …………………………………………………………………………………………..

…………………………………………………………………………………………………..

(2) Here insert the Licence No. appearing on the licence in respect of which the notice is being issued

IN THE MATTER OF (2) …………………………………………….. you are hereby directed to take the following action(s) before the …………………….. day of ……………………… in order to give effect to licence No. …………. attaching to Licence No. ……………….. for the protection of the environment in accordance with the Environmental Protection and Pollution Control Act, Cap. 204

    (a)    ……………………………………………………………………………………….

    (b)    ……………………………………………………………………………………….

    (c)    ………………………………………………………………………………………

(3) Signature of Minister

    (d)    ……………………………………………………………………………………..

A failure, by yourself, to comply with this notice constitutes an offence in terms of section 68(2) of the Act, for which you may be prosecuted.

Dated this ……………… day of ……………… 20……..

(3) ………………………………..
Minister

Form XXXI

[Regulation 28(1)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

APPLICATION FOR CONSENT TO ABANDON/CLOSE/PLUG WELL

Application No. ……………….

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Petroleum Exploration/Petroleum Development and Production Licence No.

2.

Hydrocarbons

3.

    (a)    Names of applicant(s)

    (b)    Type of applicant(s)

Individual

Partnership

Company

Partnership

NGO

4.

Applicant’s address

Tel:

Fax:

E-mail:

5.

Name and number of well

Location of well to be abandoned/plugged/closed

Locality

Town

District

Province

6.

Coordinates of well

Latitudes (S)

Longitudes (E)

D

D

M

M

S

S

D

D

M

M

S

S

Corner

1

Corner

2

Corner

3

Corner

4

Corner

5

Corner

6

Corner

7

Corner

8

Corner

9

Corner

10

Corner

11

Corner

12

Corner

13

Corner

14

Corner

15

Corner

16

Corner

17

Corner

18

Corner

19

7.

Reasons for abandonment/plugging/
closure

8.

Proposed date or abandonment/plugging/ closure

Receipt number

Name of applicant: ………………………………………………………. Date ………………………….

Signature: ………………………………………………………..

FOR OFFICIAL USE ONLY

Received by (Name): …………………………………………..

Date ………………………………..

Signature of officer: …………………………………………….

STAMP

Form XXXII

[Regulation 28(2)]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

CONSENT TO ABANDON/CLOSE/PLUG WELL

(Section 54 of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

Petroleum Exploration/Petroleum Development and Production Licence No. ………………………….

Holder’s name ……………………………………………………………………………………………………….

Address ………………………………………………………………………………………………………………

The well to be abandoned/closed/plugged is more particularly delineated and described in the Schedule and annexed hereto and cited ………………………………………………….. on the plan.

This consent takes effect commencing on the …………… day of ………………………… 20……..

The conditions of grant of the consent are as shown in the Annexures attached hereto.

Issued at ……………………. this …………….. day of ……………………. 20……..

(3) ………………………………..
Minister

Form XXXIII

[Regulation 31]

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

ORDER TO CEASE WASTEFUL PRODUCTION PRACTICES

(Section 55(1) of the Petroleum (Exploration and Production) Act, No. 10 of 2008)

(1) Name of well

Holder’s name ………………………………………………………………………………

(2) State time

Production Licence ………………………………………………………………………..

(3) State the wasteful practices

You are hereby ordered to stop wasteful production practices at your well (1) ………………………… within (2) ……………………………….

(4) Signature of Minister

The wasteful practices are (3)—

    (a)    ……………………………………………………………………………………

    (b)    ……………………………………………………………………………………

    (c)    ……………………………………………………………………………………

    (d)    ……………………………………………………………………………………

(4) ………………………………..
Minister

Form XXXIV

[Regulation 32]

(To be filled in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

QUARTERLY/ANNUAL RETURN

Licence No. ……………………………..

Shaded fields for official use only

Licence code

Date/Time

Information Required

Information Provided

1.

Prospecting licence for Block No.

2.

    (a)    Name(s) of applicant(s)

    (b)    Type of licensee

Individual

Partnership

Company

Partnership

NGO

3.

Appendices

Appendix No. 1

A description of the results of all petroleum operations carried out by the licensee

Appendix No. 2

In the case of exploration operations, a summary of all geological and geographical work carried out by the licensee, including a summary of all drilling activities

Appendix No. 3

A list of maps, reports and other geological and geophysical work carried out by the licensee in respect of the period concerned

Appendix No. 4

In the case of development and production operations, the gross volume and quality of all petroleum produced, saved, sold or otherwise disposed of from the licence area, the consideration accrued or received, the quantity disposed of and identity of the person to whom such quantity was disposed, and the balance of stocks on hand at the end of the period concerned

Appendix No. 5

The average number of persons employed in the Republic, in terms of Zambian and expatriate personnel, in connection with the petroleum operations carried out

Appendix No. 6

The amount disbursed in the Republic in respect of wages, overtime, allowances or other emoluments or benefits

Appendix No. 7

The amounts disbursed in the Republic and externally, for the purchase of fuels, stores, foodstuffs or other materials, equipment or services

Appendix No. 8

The total operating and capital expenditures incurred, both in the Republic and externally, in respect of the petroleum operations carried out, determined in accordance with the licence

Appendix No. 9

Environmental management progammes and safety of equipment and staff

Name: Date ……………………………….

Signature of licensee (individual or authorised company representative):

FOR OFFICIAL USE ONLY

Received by (Name): ……………………………..

Date ………………………….

Name:

Signature:

STAMP

Form XXXV

[Regulation 38]

(To be filled in triplicate)

REPUBLIC OF ZAMBIA

The Petroleum (Exploration and Production) Act, 2008
(Act No. 10 of 2008)

The Petroleum (Exploration and Production) (General) Regulations, 2011

ENFORCEMENT NOTICE

Holder’s name: ……………………………………………………………………………………………………….

Licence No.: …………………………………………………………………………………………………………..

This enforcement notice is served on you for the following reasons:

(a) ………………………………………………………………………………………………………………………..

(b) ………………………………………………………………………………………………………………………..

(c) ………………………………………………………………………………………………………………………..

(d) ………………………………………………………………………………………………………………………..

(e) ………………………………………………………………………………………………………………………..

Accordingly, you are hereby ordered to:

(a) ………………………………………………………………………………………………………………………..

(b) ………………………………………………………………………………………………………………………..

(c) ………………………………………………………………………………………………………………………..

FOR OFFICIAL USE ONLY

Name of inspector: ………………………………………………. Date Received …………………….

Signature:

STAMP

THIRD SCHEDULE

[Regulation 42]

LICENCE TERMS AND CONDITIONS

1.0    PETROLEUM EXPLORATION LICENCE

1.1    GENERAL CONDITIONS

1.1.1    The licensee shall—

    (a)    carry out the petroleum exploration in accordance with the Petroleum (Development and Production) Act, 2008;

    (b)    commence exploration operations within 90 days of grant of the licence;

    (c)    expend on, and carry out, the exploration operations as indicated in the programme of operation;

    (d)    obtain appropriate insurance for all phases of the exploration activities; and

    (e)    submit quarterly reports to the Director, Hydrocarbon Unit as may be prescribed.

1.1.2    The licensee shall not engage in any activities that compromise or may compromise the proper implementation of the licensed activity or may impede the licensed activities of other licensees.

1.1.3    The licensee shall inform the Minister of any change of—

    (a)    the name; and

    (b)    the postal and physical address;

of the licensee.

1.2    Safety, Health and Environmental Conditions

1.2.1    The licensee shall comply with the provisions of the Environmental Protection and Pollution Control Act and the guidelines on the preliminary environmental assessment of petroleum in Zambia.

1.2.2    The licensee shall comply with any other relevant laws relating to safety, health and the environment.

1.2.3    The licensee shall develop and submit to the Environmental Council for approval an emergency preparedness plan for fires, oil spills and other accidents in accordance with the Environmental Protection and Pollution Control Act.

1.3    Reporting

1.3.1    The licensee shall keep and maintain at the licensee’s registered office accounting records and prepare financial records and statements for the licensed activity separately from those of any other business or activity.

1.3.2    The annual financial statements of the licensee shall be independently audited in accordance with the applicable laws and standards of the Republic and the licensee shall submit a copy of the annual audited financial statements within three months of the end of each financial year.

1.3.3    The licensee shall maintain at the licensee’s registered office complete and accurate technical and financial records of the exploration operations, and shall—

    (a)    submit statutory reports and any other information concerning the development and production; and

    (b)    provide current information on drilling operations, development and production costs and sales.

1.3.4    Prior to making any adjustment in the rates, tariffs and other charges imposed in respect of petroleum exploration or any service provided in the course of the licensed activity, the licensee shall notify the Ministry of Finance and National Planning and shall submit to that Ministry the method used for calculating the rates, tariffs, fees and charges.

1.4    Confidentiality and Non-disclosure

1.4.1    The licensee shall not disclose to any person any proprietary information received as a direct result of conducting the licensed activity, except to persons who are authorised to receive the proprietary information, and shall not use the proprietary information to gain a competitive or commercial advantage or for conducting any other activities other than the licensed activity.

1.5    Enforcement and Compliance

1.5.1    The licensee shall render necessary assistance in the course of inspection of the licensed activities.

1.5.2    The licensee shall be liable for any harm or damage caused by the exploration activities.

1.6    Corporate Social Responsibility

The licensee shall, in consultation with the local communities and authorities, implement the corporate social responsibilities as provided in the Act, including—

    (a)    the local business development programme;

    (b)    employing and training Zambians in accordance with the approved programme; and

    (c)    giving preference to Zambian products and services.

2.0    PETROLEUM DEVELOPMENT AND PRODUCTION LICENCE

2.1    General Conditions

2.1.1    The licensee shall—

    (a)    carry out the petroleum development and production in accordance with the Petroleum (Development and Production) Act, 2008;

    (b)    reserve free carry at least 35 per cent shareholding to partner with the National Petroleum Company (NPC);

    (c)    commence development and production operations within 90 days of the grant of the licence;

    (d)    expend on the development and production operations as indicated in the programme of operation;

    (e)    obtain appropriate insurance for all phases of the development and production activities;

    (f)    submit a detailed development and production program indicating techniques, timeframes and expenditures to the Director, Hydrocarbon Unit;

    (g)    submit quarterly reports to the Director, Hydrocarbon Unit;

    (h)    not engage in any activities that compromise or are likely to compromise the proper implementation of the licensed activity or may impede any licensed activity of other licensees; and

    (i)    inform the Minister of any change of—

        (i)    the name; and

        (ii)    the postal and physical address;

of the licensee

2.2    Safety, Health and Environmental Conditions

2.2.1    The licensee shall comply with the Environmental Protection and Pollution Control Act before commencement of any petroleum development and production within the Republic.

2.2.2    The licensee shall comply with the guidelines on the preliminary strategic environmental assessment of petroleum in Zambia and any other relevant safety, health and environmental regulations.

2.3    Reporting

2.3.1    The licensee shall keep and maintain at the licensee’s registered office accounting records and financial records and statements for the licensed activity separately from those of any other business or activity.

2.3.2    Prior to making any adjustment in the rate, tariffs and charges imposed in respect of petroleum development and production or any service provided in the course of the licensed activity, the licensee shall notify the Ministry of Finance and National Planning and shall submit to that Ministry the method used for calculating the rates, tariffs, fees and charges.

2.4    Confidentiality and Non-disclosure

The licensee shall not disclose to any person any proprietary information received as a direct result of conducting the licensed activity, except to persons who are authorised to receive the proprietary information, and shall not use the proprietary information to gain a competitive or commercial advantage or for conducting any other activities other than the licensed activity.

2.5    Corporate Social Responsibility

A licensee shall, in consultation with the local communities and authorities, implement the corporate social responsibilities as provided in the Act, including—

    (a)    the local business development programme;

    (b)    employing and training Zambians in accordance with the approved programme; and

    (c)    giving preference to Zambian products and services.

3.0    FLARING GAS

3.1    General Conditions

3.1.1    The volume of gas flared or vented shall not exceed the amount necessary for its intended purpose.

3.1.2    Flaring or venting at a facility that was closed due to weather conditions or an act of God shall not exceed 48 cumulative hours.

3.2    Requirements for Flaring or Venting Gas Containing H2S

3.2.1    The licensee shall not vent gas containing H2S, except for minor releases during the maintenance and repair of equipment that do not result in a 15 minute time-weighted average atmosphere concentration of H2S of 20ppm or higher anywhere on the facility.

3.2.2    The licensee may flare gas containing H2S if the licensee meets the requirements of the Environmental Protection and Pollution Control Act.

3.2.3    The Director of the Environmental Council may, for safety or air pollution prevention purposes, further restrict the flaring of gas containing H2S.

3.2.4    The Director of the Environmental Council may, if the Director determines that flaring at a facility or group of facilities may significantly affect the air quality of an onshore area, require the licensee to conduct an air quality modelling analysis to determine the potential effect of facility emissions.

3.2.5    The Director, Hydrocarbon Unit and the Director of the Environmental Council may require monitoring and reporting or may restrict or prohibit flaring.

3.2.6    The Director of the Environmental Council may require the licensee to submit monthly reports of gas containing H2S flared or vented on a daily basis, including the following information—

    (a)    the volume and duration of each flaring and venting occurrence;

    (b)    H2S concentration in the flared or vented gas: and

    (c)    the calculated amount of SO2 emitted.

4.0    CONSENT TO DRILL A WELL LESS THAN 1000 METRES FROM LICENCE AREA BOUNDARY

4.1    Tolerances for Vertical Drilling

4.1.1    Deviation from the vertical for short distances is permitted in the drilling of a well without special approval to straighten the hole, sidetrack junk or correct other mechanical difficulties.

4.1.2    All wells shall be drilled such that the surface location of the well and all points along the intended well bore shall be within allowed tolerances.

4.2    Directional Drilling

4.2.1    Except for the tolerances allowed by the Minister, a well shall not be intentionally deviated.

4.2.2    A complete angular deviation and directional survey of the well obtained by an approved well survey company shall be submitted to the Minister within 30 days of the completion of a directionally drilled well.

5.0    WITHDRAWAL OF CEMENTED STRINGS OR OTHER CASING FROM WELLS

5.1    General Conditions

5.1.1    A complete angular deviation and directional survey of the well obtained by an approved well survey company shall be submitted to the Hydrocarbon Unit within 30 days of the completion of a directionally drilled well.

5.2    Protection of Upper Productive Strata

5.2.1    Where a well appears to have defective, poorly cemented, or corroded casing which may create underground waste or contaminate underground or surface fresh water, the operator shall use the appropriate method and means to eliminate hazard.

5.2.2    If the hazard cannot be eliminated, the well shall be properly plugged and abandoned.

5.3    Hydrogen Sulfide H2S Areas and Formations

5.3.1    The casing of a well shall not be withdrawn if the formations that were penetrated contain or are likely contain H2S in excess of 20ppm.

5.3.2    Any proposed withdrawal of casing from a site location shall be carried out in a manner that ensures maximum safety benefits consistent with international best practice.

5.3.3    At least two cleared areas shall be designated as crew briefing or safety areas and shall be located not less than 60 metres from the well, with at least one area located generally upwind from the well.

5.3.4    The licensee or operator shall provide protective equipment for operating personnel including the following—

    (a)    positive pressure type self-contained breathing apparatus;

    (b)    chalk boards or notepads to be used for communication whilst wearing protective breathing apparatus;

    (c)    first aid supplies;

    (d)    at least one resuscitator complete with medical oxygen;

    (e)    at least one bin or stretcher;

    (f)    harnesses and lifelines; and

    (g)    a telephone, radio, mobile phone, or other communication device that provides emergency two-way communication from a safe area near the well location.

5.3.5    A well site shall have an H2S detection and monitoring system that—

    (a)    activates audible and visible alarms when the concentration of H2S reaches the threshold limit of 20ppm in the air; and

    (b)    has a rapid response time and is capable of sensing a minimum of 10ppm H2S in the air, with at least three sensing points located at the shale shaker, on the derrick floor, in the cellar and any other critical area where H2S may accumulate.

5.3.6    Portable H2S detection equipment capable of sensing an H2S concentration of 20ppm shall be available for all working personnel and shall be equipped with an audible warning signal.

5.3.7    The signage shall warn of the presence of H2S and shall prohibit approach to the well site when red flags are displayed.

5.3.8    Red flags shall be displayed when H2S is present in concentrations greater than 20ppm in air as measured on the equipment.

5.3.9    Unless adequate natural ventilation is present, portable fans or ventilation equipment shall be located in work areas to disperse H2S when it is encountered.

5.3.10    A flare system shall be utilised to safely gather and burn H2S hearing gas.

5.3.11    A flare line shall be located as far from the operating site as feasible and shall be located in a manner to compensate for wind changes.

5.3.12    An outlet for a flare line shall be located at least 45 metres from the well head unless otherwise approved by the Hydrocarbon Unit.

5.3.13    Sufficient quantities of additives shall be maintained on location to add to the mud system to scavenge or neutralise H2S.

5.3.14    Equipment to indicate wind direction shall, at the times, be installed at prominent well locations.

5.3.15    At least two wind socks or streamers shall be located at separate elevations at the well location which are visible from all areas of the location and in illuminated areas for night operations.

5.4    Fire Hazards on the Surface

5.4.1    Any rubbish or debris that constitute a fire hazard shall be removed to a distance of at least 30 metres from the well site, tanks, separator or any other structure.

5.4.2    All waste oil or gas shall be burned or disposed of in a manner to avert creation of a fire hazard.

5.4.3    Any gas other than poisonous gas escaping from the well during withdrawal of casing operations shall be, so far as practicable, conducted to a safe distance from the well site and burned in a suitable flare.

5.5    Pollution and Surface Damage Control

5.5.1    The operator shall take all reasonable precautions to avoid polluting land, streams, reservoirs, natural drainage ways and underground water.

5.5.2    The licensee holder or operator shall—

    (a)    take reasonable steps to prevent, and shall remove, accumulations of oil or other materials which are fire hazards from the vicinity of well locations, lease tanks and pits;

    (b)    remove from the well site or store in an orderly manner, all scrap or other materials which are not in use;

    (c)    provide secure storage for chemical containers, barrels, solvents, hydraulic fluid and other non-exempt materials;

    (d)    maintain tanks in a manner that will prevent leakages;

    (e)    construct berms of a height and width that is able to support the quantity of the largest tank at the storage facility;

    (f)    not use crude or produced water storage tanks which do not have tops except during well testing operations;

    (g)    without delay, catch leaks and drips and contain, and cleanup, any spills;

    (h)    employ waste reduction measures and recycling to reduce disposal volumes;

    (i)    dispose of produced water, tank bottoms and other waste in the prescribed manner; and

    (j)    employ good housekeeping practice.

5.6    Reserve Pits and Other On-site Pits

5.6.1    Small onsite oil field pits including reserve pits, emergency pits, workover and completion pits, storage pits, pipeline drip pits and sumps shall be constructed according to the Hydrocarbon Unit guidelines for onsite pits.

5.6.2    Pit contents shall meet the Hydrocarbon Unit’s Cleanup levels or background levels prior to their burial.

5.6.3    Contents may require treatment to reduce mobility or toxicity in order to meet cleanup levels. The alternative to meeting cleanup levels would or may be transported to an appropriate disposal facility.

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