Someone recently asked what the DPE required for a declaration of a discovery. I can not recall or find the posting. I do not see where there are any such requirements.It appears that an operator must discover some oil or gas, and if he does, he must follow the following process as set out in the Oil and Gas Act 1998:
32. DISCOVERY OF PETROLEUM TO BE NOTIFIED.
(1) Where petroleum is discovered in a licence area, the tenement holder–
(a) shall immediately inform the Director of the discovery; and
(b) shall, within a period of three days after the date of the discovery, furnish to the
Minister written particulars of the discovery.
(2) Where petroleum is discovered in a licence area, the Director may, from time to time, by instrument
served on the tenement holder, direct the tenement holder to furnish to him, within the period specified in
the instrument, written particulars of–
(a) the chemical composition and physical properties of the petroleum; and
(b) the nature of the subsoil in which the petroleum occurs; and
© any other matters relating to the discovery that are specified by the Director in
the instrument.
(3) A person to whom a direction is given under Subsection (2) who fails or refuses to comply with the
direction is guilty of an offence.
Penalty: A fine not exceeding K5,000.00.
33. DIRECTIONS BY MINISTER ON DISCOVERY OF PETROLEUM.
(1) Where petroleum is discovered in a licence area, the Minister may, by instrument served on the
tenement holder, direct the tenement holder to do, within the period specified in the instrument, such things
as the Minister thinks necessary and specifies in the instrument, including the completion of wells, the
conduct of drill stem or extended production tests for appraisal of the petroleum pool to which the discovery
relates (including the construction in accordance with the direction and the operation of pipes and facilities
to gather and transport petroleum to a point of testing or treatment or disposal), and the recovery and sale or
other disposal of all petroleum so produced, to determine–
(a) the chemical composition and physical properties of the petroleum; and
(b) the quantity of petroleum in the petroleum pool to which the discovery relates,
or if part only of that petroleum pool is within the licence area, in the part of the
petroleum pool that is within the licence area.
(2) A person to whom a direction is given under Subsection (1) who fails or refuses to comply with the
direction is guilty of an offence.
Penalty: A fine not exceeding K5,000.00.
34. DECLARATION OF LOCATION.
(1) In this section, “discovery block” means a block in which petroleum has been discovered.
(2) Where petroleum has been discovered in a block within a tenement (not being a block that is or is
included in a location) the Minister–
(a) shall, on receipt of a request from the licensee; and
(b) may in any case,
declare by notice in the National Gazette–
© in a case referred to in Paragraph (a)–the discovery block and not more than
eight adjoining blocks within the licence area that are nominated by the licensee;
or
(d) in any other case–the discovery block and such adjoining blocks as the
Minister thinks proper,
to be a location for the purposes of this Act.
(3) At the request of the tenement holder or of his own volition the Minister may, by notice in the National
Gazette–
(a) include in a location additional adjoining blocks; or
(b) revoke the declaration of a location in respect of one or more blocks,
but a location may not at any time include more than nine blocks.
(4) For the purposes of this section, a block adjoins a discovery block, if the graticular section that
constitutes or includes the first-mentioned block has a side in common with, or touches–
(a) the discovery block; or
(b) any block that has a side in common with, or touches, the discovery block.
35. INVESTIGATION, ETC., OF LOCATION.
(1) Where a location has been declared under Section 34, the Minister may, by written notice served
on the tenement holder, direct that the tenement holder carry out, within a period specified in the notice of
not less than two years, such investigations and studies as the Minister thinks proper to assess the feasibility
of the construction, establishment and operation of an industry for the recovery of petroleum from the
location.
(2) The investigations and studies referred to in Subsection (1) may include–
(a) technical and economic feasibility studies relating to the recovery and transport
of petroleum from the location and processing of the petroleum; and
(b) studies of proposed sites for facilities that would be required by the industry
referred to in Subsection (1); and
© studies of port or berthing facilities, and roads, pipelines or other transportation
facilities; and
(d) investigations into–
(i) suitable water facilities and reticulation systems for industrial and
town purposes; and
(ii) the location and design of a suitable airstrip and associated landing
and terminal facilities, if required; and
(iii) the generation and transmission of electricity as required; and
(e) investigations into the development, if required, of a suitable town for the
industry referred to in Subsection (1), including the design of housing facilities and
associated civic, cultural and social facilities; and
(f) investigations of any other works, services or facilities that may be required by
that industry in relation to the location; and
(g) studies of future labour requirements for that industry; and
(h) physical impact studies into the possible effects of that industry on the
environment.
(3) The tenement holder shall furnish to the Minister, within the period specified in the notice under
Subsection (1), such reports, analyses and data resulting from the investigations and studies carried out
under this section as the Minister, by written notice served on the tenement holder, may require.
