(1) Subject to such Regulations as may be prescribed and subsections (3) and (4) of this section, the Corporation shall have a right to undertake exploration, development and production of petroleum over all blocks declared by the Secretary as open for petroleum operations over which no petroleum agreement exists.

(2) Subject to the provisions of section 35 of this Law, the rights granted to the Corporation under subsection (1) of this section shall not effect any rights granted to any person under any licence or authority given under the Minerals Act, 1962 (Act 126) for prospecting and production before the coming into force of this Law.

(3) Where the exploration, development and production of petroleum under subsection (1) of this section is carried out by the Corporation not in association with a contractor under the terms of a petroleum agreement, the operations of the Corporation shall be carried out in accordance with such terms and conditions as may be prescribed in the Regulations, and in accordance with a long-term exploration and production programme and annual programme drawn up by the Corporation in respect of each block and approved by the Secretary.

(4) Where the exploration, development and production of petroleum is carried out by the Corporation in association with a contractor, such contractor shall first enter into a petroleum agreement, in accordance with subsection (1) of section 2 of this Law, with the Republic and the Corporation to specify the terms and conditions under which such petroleum operations shall be carried out. Any such petroleum agreement shall include such provisions as may be required by Part II of this Law.