(1)  Where –

(a) a licence is surrendered or cancelled as to a block; or

(b) a permit or lease is surrendered, cancelled, or determined as to a block –

(i) that, at the time of the surrender, cancellation, or determination, was, or was included in, a location; and

(ii) in which, in the opinion of the Minister, there is petroleum –

the Minister may, at any subsequent time, by instrument published in the Gazette –

(c) invite applications for the grant of a licence in respect of that block; and

(d) specify a period within which applications may be made.

(2)  The Minister shall, in an instrument under subsection (1) , state –

(a) that an applicant is required to specify an amount that he would be prepared to pay in respect of the grant of a licence to him on his application; or

(b) that an applicant is required to specify a rate of royalty that he would be prepared to pay, if a licence were granted to him on his application, in respect of petroleum recovered under the licence, being a rate that exceeds 10 per cent of the value at the well-head of that petroleum.

(3)  Where the Minister, in an instrument under subsection (1) , states that an applicant is required to specify a rate of royalty as mentioned in subsection (2) (b) , the Minister may, in that instrument, state that an applicant on whose application he is prepared to grant a licence will also be required to pay to him, in respect of the grant of the licence to the applicant, the amount specified in that behalf in that instrument.

(4)  Where an instrument is published under subsection (1) and –

(a) no application is made within the period specified in the instrument; or

(b) after consideration of the applications, a licence is not granted –

in respect of the block specified in the instrument, the Minister may cause a notification accordingly to be published in the Gazette and may, at any subsequent time and without invitation under subsection (1) , receive an application for the grant of a licence in respect of that block.

(5)  The Minister shall not receive an application under subsection (4) during any period during which an application may be made in pursuance of an invitation under subsection (1) .

(6)  An application under this section –

(a) shall be in accordance with an approved form; and

(b) shall be made in an approved manner; and

(c) shall be accompanied by the particulars referred to in section 40 (1) (c) ; and

(d) in the case of an application under subsection (1) , shall specify, in accordance with the requirement in the instrument by which applications were invited, the amount or the rate of royalty, that the applicant would be prepared to pay; and

(e) in the case of an application under subsection (4) , shall specify –

(i) an amount that the applicant would be prepared to pay in respect of the grant of a licence to him on the application; or

(ii) a rate of royalty that the applicant would be prepared to pay in respect of petroleum recovered under the licence, being a rate that exceeds 10 per cent of the value at the well-head of that petroleum; or

(iii) such an amount and such a rate; and

(f) may set out any other matters that the applicant wishes the Minister to consider.

(7)  The Minister may, at any time, by instrument in writing served on the applicant, require him to furnish, within the period specified in the instrument, further information in connection with his application.