PETROLEUM AND GEOTHERMAL ENERGY RESOURCES ACT 1967 - SECT 142
PETROLEUM AND GEOTHERMAL ENERGY RESOURCES ACT 1967 - SECT 142
142 . Royalty
(1) The conditions
subject to which a permit, drilling reservation, lease or licence is granted
shall include a condition that the permittee, holder of the drilling
reservation, lessee or licensee shall, subject to this section, pay to the
Minister a royalty at the prescribed rate in respect of all petroleum or all
geothermal energy, as the case requires, recovered by the permittee, holder of
the drilling reservation, lessee or licensee in the permit area, drilling
reservation, lease area or licence area.
(2) The prescribed
rate in respect of petroleum recovered under a petroleum exploration permit,
petroleum drilling reservation or petroleum retention lease is 10% of the
royalty value of the petroleum.
(2a) Subject to
section 143, the prescribed rate in respect of geothermal energy recovered
under a geothermal exploration permit, geothermal drilling reservation,
geothermal retention lease or geothermal production licence is 2.5% of the
royalty value of the geothermal energy.
(3) Subject to the
succeeding provisions of this section and to the provisions of section 143,
the prescribed rate in respect of petroleum recovered under a petroleum
production licence is the percentage determined by the Minister in pursuance
of subsection (1) of section 52 or, where more than one percentage was so
determined, the percentage so determined that is, in accordance with
subsection (2) of that section, for the time being applicable in respect of
petroleum so recovered.
(4) Subject to
section 143, the prescribed rate in respect of petroleum recovered under a
secondary licence is the percentage determined by the Minister in pursuance of
section 52(3) in respect of petroleum so recovered.
(5) Subject to
subsection (6) and to section 143, where a secondary licence is granted to the
holder of a primary licence, the prescribed rate in respect of petroleum
recovered under the primary licence is, as from the commencement of the next
royalty period after the day from which the secondary licence has effect, the
same percentage as is applicable in respect of petroleum recovered under the
secondary licence.
(6) Notwithstanding
the provisions of section 52(3) and subsection (5), where a secondary licence
is granted to the holder of a primary licence, the Minister may determine that
the prescribed rate or rates in respect of petroleum recovered under the
primary licence shall continue, as from the commencement of the next royalty
period after the day from which the secondary licence has effect, to be the
same rate or rates as was or were determined by the Minister under
section 52(1) in respect of the primary licence.
(7) Where —
(a) a
petroleum production licence is granted on an application under section 57;
and
(b) the
instrument served on the applicant under section 59 contains a statement that
the applicant will be required to pay, in respect of petroleum recovered under
that licence, royalty at the rate specified in that statement,
the prescribed rate in
respect of petroleum recovered under that licence is the percentage specified
in that statement.
(8) Where a petroleum
production licence is granted on an application under subsection (1) of
section 61, the prescribed rate in respect of petroleum recovered under that
licence is the same percentage as was applicable in respect of petroleum
recovered under the original licence as defined by subsection (1) of that
section.
(9) Subject to
section 143, the prescribed rate in respect of petroleum recovered under a
petroleum production licence granted by way of renewal of a licence is the
percentage applicable under the licence before renewal (or, if another
percentage is fixed by Parliament in respect of petroleum so recovered, that
percentage) of the royalty value of the petroleum.
[Section 142 amended: No. 12 of 1990 s. 109; No.
78 of 1990 s. 7; No. 11 of 1994 s. 5; No. 35 of 2007 s. 75.]