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(1) A contractor shall, where a discovery is declared to be commercial, submit to the Minister for approval a plan of development and operation in respect of any petroleum field to be developed.

(2) The Minister shall set a deadline for the submission of the plan.

(3) The plan of development and operation shall contain a description of the development programme and production programme together with an environmental report approved by the appropriate institutions in accordance with applicable enactments.

(4) The description of the development and production programme shall provide detailed information on the economic, reserves, technical, operational, safety, commercial, local content and environmental components of the proposed development, including

(a) a description of development strategy and concept;

(b) an economic assessment of the different development methods, estimated investments, operational costs and selection criteria;

(c) a plan covering the total development, where the development is proposed in two or more phases;

(d) an assessment of the potential for development of further petroleum resources within the contract area to ensure the maximum long term recovery of the resources;

(e) tie-ins with other petroleum fields where applicable;

(f) area studies for the possibility of co-ordination of petroleum activities including the development of nearby petroleum fields;

(g) proposed drilling and well completion plans;

(h) geological parameters and reservoir engineering methodology;

(i) facilities for production, storage, transportation and delivery of petroleum; 

(j) a development schedule;

(k) a long-term production schedule;

(l) a description of technical solutions including possible solutions for enhanced recovery;

(m) a description of capacities of facilities;

(n) solutions for the efficient use of energy, and the prevention and minimization of environmentally harmful discharges and emissions;

(o) the disposal and use of associated gas where-applicable;

(p) management systems, including information on the planning, organization and implementation of the development;

(q) operation and maintenance;

(r) a description of fiscal metering systems;

(s) petroleum marketing plan;

(t) security plan;

(u) a financial plan for the development;

(v) a health and safety assessment report;

(w) an emergency preparedness plan;

(x) facilities for transportation, utilization or treatment of petroleum;

(y) decommissioning and disposal of facilities;

(z) any applications for permits and licences required under applicable enactments in connection with petroleum activities related to the plan;

(a) a local content plan; and

(b) an employment and recruitment programme and a technology transfer plan.

(5) The Minister may require the contractor to ensure that a marginal field delineated before and after approval of the plan of development and operation, is optimally developed and produced.

(6) The plan of development and operation shall include details for the construction of facilities to avoid gas venting or flaring under normal operating conditions.

(7) In consultation with the Commission, the Minister may in the national interest limit the approval to the development and production of individual reservoirs or phases and the development and production may be subject to conditions determined by the Minister, including requirements relating to additional capacities for additional resources or third party access.

(8) The Minister may revise the long term production schedule if the revision is warranted by resource management considerations or significant socio-economic considerations.

(9) Unless otherwise permitted by the Minister, a contractor shall not

(a) enter into contracts relating to the plan of development and operation, or

(b) commence construction works until the plan of development and operation has been approved by the Minister.

(10) A plan of development and operation becomes effective upon the prior written approval of the Minister.

(11) The contractor shall promptly notify the Minister in writing of any deviation from the assumptions and preconditions on which a plan has been submitted or approved.

(12) Any deviation or alteration to the plan of development and operation or material alteration to the facility requires the written approval of the Minister.

(13) The Minister may require a new or amended plan of development and operation to be submitted before the approval of any deviation or alteration.

(14) Where a contractor does not submit a plan of development and operation within the time limit set by the Minister in accordance with subsection (1), and the Minister has not extended the time limit, the area encompassing the field to be developed shall be relinquished by the contractor.

(15) This section applies to the Corporation where it undertakes petroleum activities in accordance with section 11 (1).