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(1) Subject to subsection (2), licensee parties or contractor parties, who jointly hold a petroleum agreement or a licence are jointly and severally responsible to the Republic for the financial and other obligations and liabilities arising out of the petroleum activities.

(2) A contractor and a licensee are not jointly and severally responsible for payment of taxes, royalties in cash and additional oil entitlement.

(3) A licensee, contractor or sub—contractor shall keep the Republic and the Corporation indemnified against claims arising from the operations of the licensee, contractor or sub-contractor brought by a third party.

(4) Where third party liability is incurred by a person who undertakes a task for a licensee, contractor, sub-contractor or the Corporation, the licensee, contractor, sub-contractor or the Corporation is liable for damages to the same extent as, and jointly and severally with the person undertaking the task and if applicable, the employer of the person.