Law of 6 March 1991, laying down detailed rules on the detection and exploitation of hydrocarbons ("Petroleumwet 1990") (Bulletin of acts and decrees 1991 no. 7), as it stands after the amendments at S.B. 2001 No. 58..

Chapter 1

GENERAL PROVISIONS

Article 1-1

1For the purposes of it by or under this law, the following definitions shall apply: a. natural gas: all hydrocarbons under normal atmospheric conditions in a gaseous state, including wet gas, dry gas and residue gas that remains after the separation of liquid hydrocarbons from wet gas. b. Contractor: a third with whom a State enterprise a petroleum contract. c. Associated gas: natural gas that is produced along with crude oil from a well. d. Non-associated gas: produced from a well, other than in association with crude oil. e. The Minister: the Minister in charge of mining Affairs. f. Petroleum: crude oil or natural gas, or any combination thereof. g. Petroleum agreement: a contract entered into by a State enterprise and a contractor for the reconnaissance, exploration and exploitation of petroleum in the area in which the right of reconnaissance, exploration and exploitation is granted. h. Petroleum field: one or more petroleum accumulations in a geologically defined area. i. Petroleum activities: exploration, exploring, developing, producing, transporting, processing, refining, liquefaction, import and export of petroleum or petroleum products. j. Crude oil: hydrocarbons under normal atmospheric conditions in solid or liquid form including condensates and distillates from natural gas. k. State Enterprise: a company or other legal entity in which the State itself and/or through State institutions controlling the Board thereof and which mainly aim the exploration, exploitation and processing of hydrocarbons. l. Sub-contractor: a natural or legal person who, directly or indirectly, services related to and characteristic of petroleum work to a contractor, in accordance with use in the international petroleum industry.

Article 2

For the reconnaissance, exploration and exploitation of hydrocarbons is the "Decree mining" as far as this Act it is deviated, apply.

Article 3

Of the requirements relating to the request in order to obtain the rights to exploration, exploration and exploitation of mineral resources under articles 21, 25 and 30 of the "mining" Decree, concerning the geographical indication of the site to whom the application relates, may be waived in respect of hydrocarbons by the institution that, pursuant to article 6 paragraphs 3 and 4 of the Decree "mining" , the provision of the relevant rights is competent.

Article 4

The rules regarding the period for which and the size of the area in which the rights of exploration, exploration and exploitation of mineral resources under articles 22, 27 and 33 of the "mining" be granted, can Decree regarding hydrocarbons accompanying the decision giving rights referred to, if necessary, be made by the institution that, pursuant to article 6 paragraphs 3 and 4 of the Decree "mining" the provision of the relevant law is competent.

CHAPTER II

STATE ENTERPRISE

Article 5

Having regard to the provisions of the "Decree mining" and in this law, are entitled to State enterprises, after approval of the Minister, petroleum agreements with third parties, as referred to in article 1 (g) of this law. The Minister does not endorse, other than to have obtained permission to do so by the Government.

Article 6

Having regard to their purpose, State enterprises, including when entering into agreements with third parties: (a) the petroleum exploration and rational development of the petroleum resources of Suriname on most effectively and in accordance with the best international techniques and use; (b) to promote the greatest possible benefits from the development of its petroleum occurrences obtains; c. the transfer of technology relating to petroleum activities to Suriname; (d) the training of Surinamese petroleum experts at work ; e. to ensure that petroleum activities in such a way as to be performed, that adverse consequences to the environment and natural resources.

Article 7

1. at the request of a State enterprise will state for the purposes of and in connection with the exercise of petroleum activities, but in accordance with the existing laws and regulations, to business permits and grant permission in order to allow a State enterprise in all the facilities necessary or conducive to effective exercise of petroleum interests-including, but not limited to ports and end stations , means of communication and means of transport between the ports and end stations and the corresponding part or parts of the site where the mining law refers, as well as to and from places outside of Suriname, houses, fences, buildings, machines, furnaces, pipelines, storage tanks, compressor stations, processing plants and field roads-build, establish, maintain and use.

2. As far as State enterprises need country domain for use in connection with the exercise of its petroleum activities, the State can appropriate ground free of charge. After termination of the petroleumwerkzaam-present on domain country, will the State Enterprise the State thereof in writing and the raw, as far as reasonable, in the former State.

3. If State Enterprise fail within reasonable time and on reasonable terms site, easements, rights of way or other rights required for petroleum activities, acquire suitable domain, the State or country, or that measures which are or will be necessary in order to enable State enterprises to acquire land and rights referred to. State enterprises will provide funds that are needed for this acquisition,.

Article 8

1. The State will as far as possible take the necessary steps to ensure that State enterprises which have been granted their rights. 2. The State shall grant as much as possible its cooperation in granting permissions, approvals, consents and permits to State enterprises which under the law are required, in connection with and to promote their activities under a petroleum agreement.

CHAPTER III

TAXES AND FOREIGN CURRENCY

Article 9-2

1. State enterprises as well as contractors are subject to all applicable tax laws, stamp duties, fees and all other costs of a general nature and which is not discriminatory in nature against contractor. The foregoing shall not apply where in this Act or in the Decree deviation or waiver is granted mining.

2. The provisions of article 63 of the "Decree mining" on the surface right, may waiver be granted in whole or in part, hydrocarbons in State decision.

3. State enterprises and contractors will be exempt from customs duties for the import and export of equipment, materials, property or equipment of any kind, which are used for petroleum activities. If these goods by the contractor are entered, the exemption shall apply only in the case the goods that are not the property of a State enterprise, after finishing the petroleum work either property of a State enterprise or weather from Suriname are carried out.

4. the household article of the staff of a contractor are exempt from customs duties on import into Suriname, provided that these articles are already used for their input and within six months after arrival of the person concerned.

5. the information referred to in paragraphs 3 and 4 of this article shall exemptions will not apply to those goods, established by State Decree shall be excluded.

6. State enterprises and contractors will be subject to the legal provisions on the statistics consent law in the imports and exports of goods with the understanding that the amount due in any one calendar year statistics-and consent law amount to be determined at a later State Decree.

7. With the exception of statistical and consent law there will be no further export in the export of petroleum tax, stamp duty or other charge, levy or tax be levied or his due. State decree to State enterprises may, however, then awaken to contractors be granted exemption from all or part of the amount due statistical and consent law in connection with the export of petroleum.

8. A contractor pursuant to the income tax will 1922 (G.B. 1921 No. 112, as last amended by S.B. 2000 No. 123) are subject to income tax in accordance with the rates in force at the date of the entry into force of the petroleum agreement. If the tax rates be changed, such modification shall not apply to the contractor and has no effect in respect of its tax liability pursuant to the income tax Act 1922.

Article 10


1. in accordance with the existing legal provisions: a. the State will cooperate as much as possible that transactions in foreign currency or for the benefit of State enterprises or contractors are accomplished by providing general and special permits; b. State enterprises and their contractors are entitled to in and outside of Suriname to buy goods and services and will be entitled for that purpose payments in foreign currency abroad; c. are State enterprises and Moreover, their contractors to petroleum Suriname guilder against other currencies than to sell and to receive the proceeds of such sales on foreign accounts and. 2. State enterprises have the right to funds, including funds in foreign currency, showers Suriname to finance petroleum activities to acquire, among other things, whether or not by borrowing at interest, or by receiving advances. As far as these funds abroad be obtained, maintained and paid for or in the interests of petroleum activities, fall outside the rules of Suriname and there will be no foreign exchange rate margin that are due, but they will nevertheless be registered. For the provisions of the first sentence of this paragraph is always the written consent of the Minister in charge of foreign exchange matters required. 3. The price payable by a State Enterprise margin payments in foreign currency shall not in any calendar year a further amount to be determined by State Decree. This maximum amount to pay rate margin shall apply mutatis mutandis to a contractor in this area payment in foreign currency from the benefit that this receives. 4. A contractor is entitled to payment of profits and repayment of principal and interest on advances and loans in foreign currency. 5. A contractor must be approved by the Government all taxes in foreign currency.

CHAPTER IV

PETROLEUM AGREEMENTS

Article 11

On every petroleum agreement, the provisions of this chapter shall apply.

Article 12

Petroleum agreements will contain provisions in relation to the acquisition by State enterprises and confidentiality by State enterprises and contractors of technical, financial and economic data, obtained in the framework of a petroleum agreement.

Article 13

A contractor will the State enterprise, with which a petroleum agreement has been concluded, the opportunity to meet its obligations arising out of the "Mining Decree" regarding informational provision, making reports, tracking and inspection of archives.

Article 14

The accountants and representatives of a State enterprise have access at all times to the with a petroleum agreement-related work, amenities, activities, accounts, archives and records of the contractor with whom a petroleum agreement has been concluded, as well as the right to inspect, monitor and investigate.

Article 15-3

1. a contractor that a petroleum contract is with a State enterprise, will provide to this a guarantee according to the provisions of the relevant petroleum agreement the fulfilment by the contractor.

2. At the written request of the State enterprise, which is a petroleum agreement with a contractor, can the Government provide a guarantee regarding contractor at State decree with respect to: a. ensuring the rights and claims of the contractor under the petroleum agreement and the interests involved in the exercise thereof by the contractor, in so far as the Government is competent to do so. b. stabilizing the fiscal position of the contractor at the time of the emergence of the petroleum agreement, in accordance with the provisions of the Constitution in this regard. 3. Already by the Government guarantees have been provided to contractors before the entry into force of this law, be considered to have been provided on the basis of this law.

Article 16

A contractor should only be closed in accordance with provisions of the petroleum agreement rights arising out of that contract in whole or in part, directly or indirectly to third parties.

Article 17

1. a contractor will, in accordance with the legal regulations and the provisions of the relevant petroleum agreement, to ensure that the employment of foreign staff is strictly limited to functions for which there is no experienced and qualified Surinamese people are available, and will use all the possibilities so that Surinamese citizens are proficient in and acquire positions of responsibility in the work of the petroleum in the kadere agreement.

2. a contractor will in the implementation of activities relating to the petroleum agreement, give preference to goods and services produced in Suriname and/or available over foreign goods and services, where to obtain them are on no less favourable terms.

Article 18

Every transaction between a contractor and an affiliate society resulting from a petroleum agreement, will be closed on the basis of prevailing competitive international rates and other conditions that would be reasonable and fair, if the transaction would take place between non affiliated prices.

Article 19

1. a contractor will hold office in Paramaribo, in order the work resulting from a petroleum agreement. 2. The Office that is established pursuant to paragraph 1 will be registered in accordance with the legal provisions.

Article 20

Areas where petroleum agreements will as much as possible are defined in terms of numbered blocks, marked on a reference card manufactured by or on behalf of the State in relation to the area over which the Republic of Suriname exercises sovereign rights.

Article 21

1. a petroleum agreement will include facilities for the periodic shedding of portions of the site where the agreement relates to.

2. each pursuant to a petroleum agreement repelled area will, as far as possible, adjacent and contiguous and of such a size and shape, that effective implementation of petroleum activities in the shed area will be possible.

Article 22

A petroleum agreement will involve facilities in relation to movable and immovable property will be owned by the State enterprise to whom the rights referred to in article 2 have been granted.

Article 23

1. within the framework of a petroleum agreement will be drawn up a development plan for each petroleum field that will be developed. 2. Such a development plan will be subject to the approval of the State enterprise to whom the rights referred to in article 2 have been granted, are offered, before begins work on the implementation of this plan.

Article 24

If a petroleum field extends beyond the boundaries of an area over which a single petroleum contract is in force, the State enterprise to whom the rights referred to in article 2 shall take measures to develop the entire petroleum field as a unit and will give appropriate instructions in that regard, the relevant contractors.

Article 25

1. a petroleum agreement will include facilities for natural gas that is produced along with crude oil, to be used in petroleum activities, as required by the usual conservation methods in the oil industry and in accordance with approved produktieplannen. 2. In case of detection of non-associated gas and associated gas in larger quantities than required for the petroleum, will work for the State enterprise and the contractor within an agreed term measures in order to determine whether there is an economic recoverable natural gas accumulation. 3. In case of novelties of the State enterprise and economic winbaar natural gas will the contractor as soon as possible in order to get to a dialogue, a supplementary agreement for the exploitation of such gas. If the State enterprise and the contractor do not succeed within an agreed period to such an agreement, the contractor on the natural gas accumulation in shedding contract area and neither in such natural gas.

Article 26

A petroleum agreement will contain provisions in relation to the supply in the local supply need, being the ultimate need of the State to petroleum for binnenlans use.

Article 27

A contractor is entitled all petroleum which he claims under a petroleum agreement, export, subject to any restrictions in the petroleum agreement.

Article 27a-4

All rights, obligations, privileges and exemptions that apply to the contractor pursuant to this law shall also apply to their sub-contractors, except as stated in article 9 paragraph 8.

CHAPTER V

TRANSITIONAL AND FINAL PROVISIONS

Article 28

State decision may be adopted for: a. determining measures of petroleum and for the transport. b. the conservation of petroleum and preventing unnecessary waste. c. the protection of fisheries, shipping and other activities within or near the areas where petroleum activities are carried out.

Article 29


1. be Repealed: (a) the law of 30 May 1932, laying down detailed rules concerning the investigation of and vanpetroleum mining ("Petroleumwet 1932", G.B. 1932 No. 55, text in force G.B. 1953 No. 3, as amended by g.. 1968 No. 100); b. the Decree of 3 december 1980 to reach the staatsolie Maatschappij Suriname N.V. a licence for doing research and of a concession for the exploitation of hydrocarbon resources , as well as to establish certain thereby gave related legislation (Decree E-8, S.B. 1980 no. 128, as amended by S.B. 1981 No. 37 and S.B. 1985 No. 66).

2. The Decree of 11 May 1981, authorising provision to the staatsolie Maatschappij Suriname N.V. a licence for doing research and of a concession for the exploitation of hydrocarbon resources (Decree E-8B, S.B. 1981 No. 59) continues to a further date to be determined by law in force.

Article 30

1. this law, which may be referred to as "petroleumwet 1990", is promulgated in the Official Gazette of the Republic of Suriname. It shall enter into force with effect from the day following its promulgation.

1 wt. at S.B. 2001 No. 58.2 wt. at S.B. 2001 No. 58.3 WT. at S.B. 2001 No. 58.4 inserted rec. at S.B. 2001 No. 58.