(1) The contractor shall pay to the Republic royalty in respect of gross volume of petroleum produced and saved.

(2) The royalty to be paid is as prescribed, except that where the rates of royalty payable are not prescribed, royalty shall be paid as otherwise provided in accordance with the terms of a petroleum agreement in respect of the area to which the agreement relates.

(3) Royalty at the rate specified shall be delivered to the Republic in kind unless the Minister directs in writing that the royalty shall be paid in cash to the Republic.

(4) The Minister may instruct the contractor to undertake transportation, processing and storage of royalty petroleum in kind on terms and priority which are no less favourable than the contractor’s own petroleum from the relevant contract area.

(5) The Corporation in carrying out petroleum activities under section (11) (1) is subject to the payment of royalty at the rates that may be prescribed.

(6) The Minister may determine that payment of royalty in kind shall be made to the Corporation on behalf of the Republic and the proceeds from the sale of the royalty shall be paid by the Corporation to the Republic as prescribed.