Petroleum Act, 2040 (1983).

This Act provides for the development of petroleum resources within Nepal. The Government of Nepal shall have the exclusive right on all petroleum found in Nepal, and shall have the exclusive right to carry out petroleum operations. The Act grants rights and benefits to contractors who enter into a petroleum agreement with the Government of Nepal including: the right to export entitlement of petroleum; exemption from all taxes and fees except a royalty of not less than 12.5 percent to be prescribed on the value of petroleum sold or disposed of; exemption from custom duties on imported goods; and right to use land. Penal provisions are also contained in the Act.