Petroleum Act of 1971 as Amended (2007)
The act establishes State ownership over petroleum. Any person who wishes to explore or produce petroleum in the country must obtain a concession from the government.
This regulation vests competent officials with the powers to inspect facilities and take samples. It defines that any information required must be presented and outlines penalties for non-compliance. The Petroleum Act also has provisions regarding royalties and the setting of prices for oil and gas. Royalties do not apply to natural gas required to be flared during petroleum production, in accordance with the rules, procedures and conditions prescribed by the Department of Mineral Fuels.
Furthermore, the law states that the Minister of Energy shall control its execution and have the power to appoint competent officials and issue regulations over several related topics, including criteria and procedures on petroleum exploration, public safety and workforce protection.
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