10.
| (1) Where a Contractor in the course of conducting exploration operations within an Exploration Block, discovers petroleum resources in commercially viable quantities, he shall submit a project development and investment proposal for approval by the PRDC. If such proposal is acceptable to the PRDC and it approves, such proposal, the PRDC shall issue to the contractor a Development Licence for the recovery of petroleum resources of such commercial quantity as is set out in his proposal, within a designated area of the exploration block to which his Petroleum Resources Agreement relates. Petroleum Resources Agreement relates. |
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| (2) Where the commercially viable quantity of petroleum resources referred to in subsection (1) is located within more than one exploration block the PRDC may, if no Petroleum Resources Agreements have been entered into with other contractors in respect of such other explorations blocks, issue a Development License to the Contractor in respect of the area comprising the lull extent of the discovery. |
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Sri Lanka Consolidated Acts