Government may undertake petroleum exploration and production.
Section 4
SEC. 4. Government may undertake petroleum exploration and production. — Subject to the existing private rights, the Government may directly explore for and produce indigenous petroleum. It may also indirectly undertake the same under service contracts as hereafter provided. These contracts may cover free areas, national reserve areas and/or petroleum reservations, as provided for in the Petroleum Act of 1949, whether on-shore or off-shore. In every case, however, the Contractor must be technically competent and financially capable as determined by the Board to undertake the operations required in the contract.