117Simplified outline

117 Simplified outline

(2) This Part provides for the grant of petroleum retention leases over blocks in the offshore area.

 A petroleum retention lease authorises the lessee to explore for petroleum in the lease area.

 A petroleum retention lease over a block may be granted to—

(a) the holder of a petroleum exploration permit over the block; or

(b) the holder of a life‑of‑field petroleum production licence over the block.

 The criteria for granting a petroleum retention lease over a block are—

(a) the block contains petroleum; and

(b) the recovery of petroleum is not currently commercially viable, but is likely to become commercially viable within 15 years.

S. 117(5A) inserted by No. 16/2018 s. 17.

(5A) A petroleum retention lease may be obtained as a result of a change to the boundary of the offshore area.