Alphabetical List of Statutes

PETROLEUM PRODUCTS (SPECIAL PROVISIONS) ACT

Arrangement of Sections

1. Short title.

2. Powers of Ceylon Petroleum Corporation not derogated from.

3. Appointment of a Committee to exercise, perform and discharge the powers, duties and functions under this Act.

3A. Committee deemed to be a scheduled institution within the meaning of the Bribery Act.

4. Certain provisions of the Ceylon Petroleum Corporation Act, not to apply to the energy supply of Committee.

5. Grant of License to import-export petroleum.

6. Granting of a licence for distribution of petroleum.

7. Regulations.

8. Sinhala text to prevail in case of inconsistency.

9. Interpretation.

33 of 2002,

27 of 2022.

AN ACT to provide for an alternative for the import export, sale, supply and distribution of petroleum; to vest certain powers in the Committee appointed by the Cabinet of Ministers; and to provide for the matters connected therewith or incidental thereto.

[Long title am by s 2 of Act 27 of 2022.]

[Date of Commencement: 17th December, 2002]

1. Short title.

This Act may be tiled as the Petroleum Products (Special Provisions) Act.

2. Powers of Ceylon Petroleum Corporation not derogated from.

The provisions of this Act shall operate in addition to the and not in derogation of the powers vested in the Ceylon Petroleum Corporation.

3. Appointment of a Committee to exercise, perform and discharge the powers, duties and functions under this Act.

(1) There shall be a Committee appointed by the Cabinet of Ministers (hereinafter referred to as the “Committee”), subject to the succeeding provisions of this section to exercise, perform and discharge the powers, duties and functions hereinafter set out.

(2) The Committee shall consist of the following—

(a) ex-officio members—

(i) the Secretary to the Ministry of the Minister assigned the subject of Petroleum, who shall be the Chairman of the Committee;

(ii) the Secretary to the Treasury or his nominee not below the rank of Director-General of the Treasury;

(iii) the Secretary to the Ministry of the Minister
assigned the subject of Economic Policy Development;

(iv) the Secretary to the Ministry of the Minister assigned the subject of Investment Promotion;

(b) the Chairman or Managing-Director of the Ceylon Petroleum Corporation, established under Ceylon Petroleum Corporation Act, No. 28 of 1961, nominated by the Minister;

(c) two members appointed from among persons who have achieved eminence in the field of petroleum industry or law.

(3) A member of the Committee appointed under paragraph (c) of subsection (2), shall hold office for the period of two years from the date of appointment unless such member resigns the office by letter addressed to the Cabinet of Ministers or, is removed from office by the Cabinet of Ministers, for reasons assigned.

(4) The quorum for any meeting of the Committee shall be five members and the Committee may regulate the procedure, in regard to the meetings of the Committee and the transaction of business at such meetings.

[S 3 subs by s 4 of Act 27 of 2022.]

3A. Committee deemed to be a scheduled institution within the meaning of the Bribery Act.

The Committee shall be deemed to be a scheduled institution within the meaning of the Bribery Act (Chapter 26) and the provisions of that Act shall be construed accordingly.

[S 3A ins by s 5 of Act 27 of 2022.]

4. Certain provisions of the Ceylon Petroleum Corporation Act, not to apply to the energy supply of Committee.

Notwithstanding anything contained in the provisions of section 5K of the Ceylon Petroleum Corporation Act the provisions of sections 5B, 5C, 5E, 5F, 5G, 5I and 5J of that Act shall not apply in respect of the powers conferred on or assigned to the Energy Supply Committee by the succeeding provisions of this Act.

5. Grant of License to import-export petroleum.

(1) The Minister may. taking into consideration the requirements of the petroleum sector and the interests of the national economy, on the recommendation of the Energy Supply Committee, grant a licence to any person or body of persons, to import, export, sell, supply or distribute petroleum.

(2) The grant of a licence in terms of subsection (1) shall be subject to such conditions as may be prescribed by the Minister on the advice of the Energy Supply Committee for the purpose of ensuring that the import, export, sale, supply or distribution of petroleum would be properly regulated.

(3) The total number of licences issued in terms of this section shall not in the first instance exceed three:

Provided however, that where it appears to the Energy Supply Committee that it is in the interest of the national, economy and the needs of the consumers to increase the number of licences granted under this section, it may recommend to the Minister that additional licences be granted to such number of persons as may be necessary taking into consideration the interest of that sector. The Minister may taking into consideration all the related circumstances, increase the number of licences to be granted.

(4) The Ceylon Petroleum Corporation shall be deemed to be a licensee for the purposes of this Act and the provisions of this Act shall accordingly be read and construed as being applicable to such Corporation.

6. Granting of a licence for distribution of petroleum.

(1) In granting a licence for the distribution of petroleum in terms of section 5, the Minister shall consult the Minister in charge of the subject of Economic Reforms in order to ascertain the viability of engaging, on the premises used for such distribution, in any prescribed activity.

[S 6(1) am by s 6 of Act 27 of 2022.]

(2) Prescribed activity shall be such activities as may from time to time, be prescribed by regulation. The special conditions, which will govern the prescribed activities, shall also be prescribed.

(3) The licence granted for the distribution of petroleum in terms of this Act, shall contain in addition to the other conditions applicable to a licence for distribution, special conditions which will govern the activities connected with the distribution and such other prescribed activity.

(4) The prescribed activity shall he carried out in accordance with the requirements specified in any written law for the time being in force in relation to construction, planning and safely.

7. Regulations.

(1) The Minister may make regulations for the purpose of carrying out and giving effect to the principles and provisions of this Act.

(2) Every regulation made by the Minister under subsection (1) shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(3) Every regulation made by the Minister under subsection (1) shall as soon as convenient after its publication in the Gazette be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded as from the date of such disapproval but without prejudice So anything previously done thereunder.

(4) Notification of the date of which a regulation is deemed to be rescinded shall be published in the Gazette.

8. Sinhala text to prevail in case of inconsistency.

In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.

9. Interpretation.

In this Act, unless the context otherwise requires—

“Ceylon Petroleum Corporation” means the Ceylon Petroleum Corporation established in terms of the provisions of section 2 of the Ceylon Petroleum Corporation Act, No. 28 of 1961;

...

[“Energy Supply Committee” rep by s 7(2) of Act 27 of 2022.]

“Minister” means, the Minister assigned the subject and functions relating to this Act under Article 44 or 45 of the Constitution.

[Ins by s 7(1) of Act 27 of 2022.]

Petroleum Resources Act

Arrangement of Sections

1. Short title and date of operation.

2. Objects of the Act.

PART I

PETROLEUM DEVELOPMENT AUTHORITY OF SRI LANKA

3. Establishment of the Petroleum Development Authority of Sri Lanka.

4. Powers, duties and functions of the Authority.

PART II

ADMINISTRATION AND MANAGEMENT OF THE AUTHORITY

5. Constitution of the Board of Directors.

6. Chairperson of the Board.

7. Disqualifications for being appointed as a member of the Board.

8. Terms of office of the appointed members of the Board.

9. Removal, resignation etc. of appointed members.

10. Quorum and the meetings of the Board.

11. Acts or proceedings of the Board deemed not to be invalid by reason of any vacancy.

12. Seal of the Authority.

PART III

OWNERSHIP OF PETROLEUM RESOURCES AND PETROLEUM DATA AND FORMULATION
OF NATIONAL POLICY ON UPSTREAM PETROLEUM INDUSTRY

13. Ownership of petroleum resources and petroleum data.

14. Policy Advisory Committee.

PART IV

DEMARCATION AND DESIGNATION OF BLOCKS OR AREAS, ENTERING INTO PETROLEUM RESOURCES AGREEMENT OR JOINT STUDY AGREEMENT AND
GRANT OF EXPLORATION LICENCES ETC.

15. Petroleum Resources Agreement or Joint Study Agreement.

16. Demarcation and designation of exploration blocks or development blocks.

17. Calling of proposals for the conduct of petroleum operations in respect of defined exploration blocks.

18. Petroleum Resources Agreement.

19. Joint Study Agreements.

20. Development Licence.

21. Transfer or assignment of a participating interest.

22. Responsibility of persons with a participating interest.

23. Licensing of service providers.

24. Unit Development Plan.

PART V

NATIONAL PETROLEUM OPERATOR

25. Minister to designate a body of persons to be the National Petroleum Operator.

26. Extent of State’s participating interest.

 

PART VI

FISCAL PROVISIONS

27. Terms as to production sharing.

28. Fiscal stability.

29. Determination of profits and income.

PART VII

CHIEF EXECUTIVE OFFICER AND STAFF OF THE AUTHORITY

30. Appointment of a Director-General of the Authority.

31. Powers, duties and functions of the Director-General.

32. Staff of the Authority and remuneration.

33. Appointment of public officers to the staff of the Authority.

34. Appointment of officers from higher educational institutions to the Authority.

PART VIII

PETROLEUM RESOURCES DEVELOPMENT FUND

35. Establishment of the Petroleum Resources Development Fund.

36. Financial year and the audit of accounts.

PART IX

GENERAL PROVISIONS

37. Acquisition of property for contractors.

38. Directions of the Minister.

39. Delegation of powers, duties and functions of the Board.

40. Delegation of powers, duties and functions by the Director-General.

41. Powers of entry.

42. Annual report.

43. All members of the Authority etc. deemed to be public servants.

44. Authority deemed to be a Scheduled Institution.

45. Expenses to be paid out of the Fund of the Authority.

46. Offences.

47. Offences by a body of persons.

48. Regulations.

49. Rules.

50. Repeals, savings and transitional provisions.

51. Interpretation.

52. Sinhala text to prevail in case of inconsistency.

21 of 2021.

AN ACT to provide for, the establishment of the Petroleum Development Authority of Sri Lanka; the formulation of a national policy on upstream petroleum industry and regulation and management structure capturing the maximum economic value of domestic petroleum resources through modern exploration, development, production and management practices in Sri Lanka; to repeal the Petroleum Resources Act, No. 26 of 2003; and to provide for matters connected therewith or incidental thereto.

[Date of Commencement: On Notice]

1. Short title and date of operation.

(1) This Act may be cited as the Petroleum Resources Act.

(2) All the provisions of this Act, other than the provisions of Part V, shall come into operation on the date on which the certificate of the speaker is endorsed in respect of this Act in terms of Article 79 of the Constitution.

(3) The provisions of Part V of this Act shall come into operation on such date as the Minister may, by Order published in the Gazette, appoint for such purpose.

2. Objects of the Act.

The objects of the Act shall be—

(a) to establish a Policy Advisory Committee to advise on formulation of a National Policy for the upstream petroleum industry covering the exploration, development, production, and management of all petroleum resources in Sri Lanka;

(b) to provide the legal framework to regulate all processes of the exploration, development, production and management of all petroleum resources in Sri Lanka including the provision of operational guidelines;

(c) to establish an independent, efficient, and transparent regulatory framework in relation to the exploration, development, production and management of petroleum resources in Sri Lanka;

(d) to manage the available petroleum resources in an equitable, safe, and environmentally sustainable manner; and

(e) to design, implement, monitor and revise fiscal regimes that meet evolving economic needs of the country, while providing fiscal stability to contractors.

PART I

Petroleum Development Authority
of Sri Lanka

3. Establishment of the Petroleum Development Authority of Sri Lanka.

(1) There shall be established an Authority to be called and known as the Petroleum Development Authority of Sri Lanka (hereinafter referred to as the “Authority”).

(2) The Authority shall, by the name assigned to it by subsection (1), be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in its corporate name.

(3) The Authority shall be responsible for—

(a) making recommendations in respect of the National Policy on Upstream Petroleum Industry to the Policy Advisory Committee;

(b) implementing the provisions of the Act; and

(c) performing all regulatory functions connected to the upstream petroleum industry in Sri Lanka, in the manner provided for in the Act.

4. Powers, duties and functions of the Authority.

The powers, duties and functions of the Authority shall be—

(a) to prepare a map dividing the offshore and onshore areas into graticular sections to demarcate and designate exploration blocks and development blocks and to define and demarcate areas to be designated for joint studies;

(b) to promote and market acreage available for investment in the blocks as demarcated and designated in terms of section 16;

(c) to negotiate with contractors the terms and conditions to be incorporated into each Petroleum Resources Agreement, where necessary, in consultation with the Negotiating Committee appointed by the Cabinet of Ministers;

(d) to issue all licences and certificates as may be required to be issued in terms of this Act and to cancel, suspend, vary or amend the same;

(e) to determine and charge the licence fee for licences issued in terms of this Act;

(f) to issue such directions and guidelines as may be required to regulate petroleum operations;

(g) to enter into all agreements relating to the upstream petroleum industry, such as agreements pertaining to data acquisition, licensing and management of data;

(h) to make recommendations to the Minister on matters relating to the assignment or transfer of a contractor’s participating interest in a Petroleum Resources Agreement, on such terms and conditions in keeping with the objects of this Act;

(i) to provide all infrastructural and other administrative support as may be required in the process of calling for, evaluation of and awarding of bids;

(j) to employ such staff as may be required for the Authority to achieve the objects of this Act;

(k) to perform competent and responsible regulation of an internationally competitive upstream petroleum industry;

(l) to acquire and hold, take or give on lease or hire, mortgage, pledge, sell or otherwise dispose of, any movable or immovable property;

(m) to accept grants, gifts or donations from persons or bodies of persons within or outside Sri Lanka:

Provided that, notwithstanding anything to the contrary in any other provisions of this Act, the Authority shall obtain prior written approval of the Department of External Resources in respect of all foreign grants, gifts or donations in cash;

(n) to open and maintain accounts, including in foreign currencies, in any bank or financial institution as approved by the Board, and to administer the Petroleum Resources Development Fund in terms of this Act;

(o) to issue such guidelines and directions as may be required for efficient and effective management of petroleum operations and, for management of petroleum operations in the event of a disaster;

(p) to monitor and control activities which are necessary for or conducive or incidental to, achieve the objects of this Act; and

(q) to do all such other acts and things which may be conducive or incidental to, the attainment of the objects of this Act.

---