Decree No. 115/2009/ND-CP Amending and Supplementing Certain Provisions of Decree No. 48/2000/ND-CP detailing the implementation of the Petroleum Law and the Tender Regulations for Oil Exploration and Exploitation Projects issued together with Decree No. 34/2001/ND-CP.

DECREE

Regarding amendments and supplements to certain articles of Decree No. 48/2000/NĐ-CP detailing the implementation of the Oil Law and bidding regulations for oil exploration and exploitation projects issued together with Decree No. 34/2001/NĐ-CP

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Oil Law dated July 6, 1993; the Law Amending and Supplementing Certain Provisions of the Oil Law dated June 9, 2000; the Law Amending and Supplementing Certain Provisions of the Oil Law dated June 3, 2008;

Considering the proposal of the Minister of Industry and Trade,

DECREE:

Article 1. Scope of Amendments and Supplements

This Decree stipulates the amendments and supplements to certain articles of Decree No. 48/2000/NĐ-CP dated September 12, 2000, of the Government detailing the implementation of the Oil Law (referred to as Decree No. 48/2000/NĐ-CP) and the Bidding Regulations for Oil Exploration and Exploitation Projects issued together with Decree No. 34/2001/NĐ-CP dated July 6, 2001, of the Government (referred to as the Bidding Regulations).

Article 2. Amendments and Supplements to Certain Articles of Decree No. 48/2000/NĐ-CP

1. Clause 3 shall be amended and supplemented as follows:

"Article 3. Subjects Conducting Oil Activities

1. Organizations and individuals conducting oil activities include:

a) Enterprises established and operating in accordance with laws on enterprises;

b) Vietnamese and foreign organizations and individuals.

2. The enterprises, organizations, and individuals specified in Clause 1 of this Article shall conduct oil activities based on oil contracts signed with the Vietnam Oil and Gas Group in accordance with the Oil Law, this Decree, and related legal documents.

3. The Vietnam Oil and Gas Group's activities in oil exploration shall be carried out through its member companies based on oil contracts signed in accordance with Clause 2 of this Article."

2. Repeal Clause 1 of Article 4

3. Supplement Clause 8 of Article 4 as follows:

"8. 'Plan for Removal of Fixed Structures, Equipment, and Vessels' includes contents related to technical solutions, technology, total costs, and schedules concerning the removal of fixed structures, equipment, and vessels serving oil activities."

"Article 15. Contents of field trials of genetically modified organisms

"Article 15. Obligation to Remove Fixed Structures, Equipment, and Vessels Serving Oil Activities

1. Organizations and individuals conducting oil exploration and exploitation have the obligation to remove fixed structures, equipment, and vessels serving oil activities.

2. Organizations and individuals conducting oil exploitation must prepare a Plan for Removal of Fixed Structures, Equipment, and Vessels, set aside funds for the removal of fixed structures, equipment, and vessels serving oil activities in accordance with the law, submit it to the Ministry of Industry and Trade for examination and approval.

3. Organizations and individuals obligated to remove fixed structures, equipment, and vessels serving oil activities must carry out such removal according to the approved plan.

In cases where organizations and individuals request and are approved by the Ministry of Industry and Trade or at the request of the Ministry of Industry and Trade, organizations and individuals may not remove all or part of the fixed structures, equipment, and vessels serving oil activities.

4. Costs for removal shall be included in recoverable oil costs."

5. Article 25 is amended and supplemented as follows:

"Article 25. Extension of the Duration of Exploration Phases and Oil Contracts

- One or more exploration wells that are in the drilling plan or in the drilling process, but the remaining time is insufficient to complete the drilling work and post-drilling evaluation;

In cases where individual phases or the entire exploration phase expire but the Contractor has not completed the work program, the duration of individual phases or the entire exploration phase may be extended, but the total extension period shall not exceed the time stipulated in Article 17 of the Oil Law. At least 90 days before the end of each individual phase or the entire exploration phase, the Contractor and the Vietnam Oil and Gas Group must submit a document clearly stating the reasons for requesting an extension, to be submitted to the Ministry of Industry and Trade. Within 25 working days from the date of receipt of the submitted document, the Ministry of Industry and Trade will examine and approve the extension.

c) The procedure for reviewing, submitting to the Prime Minister for consideration and approval of the extension of the contract duration shall be carried out in accordance with Article 81 of this Decree.

An oil contract may be extended in accordance with Article 17 of the Oil Law.

At least one year before the end of the oil contract, the Contractor and the Vietnam Oil and Gas Group must submit a document clearly stating the reasons for requesting an extension of the oil contract to the Prime Minister, while sending a copy to the Ministry of Industry and Trade for review.

Within 35 working days from the date of receipt of the document, the Ministry of Industry and Trade will submit to the Prime Minister for consideration and decision on the extension of the oil contract duration."

6. Supplement Article 25a as follows:

"Article 25a. Extension of Exploration Duration and Contract Duration in Special Cases

1. Special cases for extending the exploration duration or contract duration under Clause 2 of Article 17 of the Oil Law include cases due to national defense and security reasons.

At least 90 days before the end of the exploration phase or at least one year before the end of the oil contract, the Contractor and the Vietnam Oil and Gas Group must submit a document clearly stating the reasons for requesting an extension of the exploration duration or contract duration to the Prime Minister, while sending a copy to the Ministry of Industry and Trade for review.

2. Within 35 working days from the date of receipt of the document, the Ministry of Industry and Trade will submit its review opinion on the extension of the exploration duration or contract duration to the Prime Minister."

7. Article 30 is amended and supplemented as follows:

"Article 30. Early Exploitation

During the exploration phase, if the Contractor conducts early exploitation in areas within the contract area, they must submit to the Ministry of Industry and Trade for approval of the early exploitation program and plan in accordance with the Oil Law, this Decree, and related laws."

8. Amend and supplement Article 35 as follows:

"Article 35. Discovery of Commercial Oil Reserves Beyond the Contract Area

In cases where commercial oil reserves are discovered beyond the contract area into an uncontracted block area, the Contractor and the Vietnam Oil and Gas Group must submit a document clearly stating the reasons for requesting an expansion of the contract area to the Prime Minister, while sending a copy to the Ministry of Industry and Trade for review."

9. Amend and supplement Article 36 as follows:

"Article 36. Consolidation of Oil Fields

In cases where commercial oil reserves are discovered in the contract area that extend into an already contracted block area, the relevant parties must agree to establish a joint development project for the entire field, submit it to the Prime Minister, while sending a copy to the Ministry of Industry and Trade for review."

10. Amend and supplement Article 37 as follows:

"Article 37. Bidding for Oil Services

1. Organizations and individuals conducting oil exploration and exploitation activities have the right to enter into contracts for oil services with subcontractors or other organizations and individuals to serve oil activities.

2. For oil contracts signed before this Decree takes effect, bidding and signing contracts for oil service related directly to exploration, development, and exploitation activities must comply with the provisions of the signed oil contract.

3. For oil contracts signed after this Decree takes effect, bidding and signing contracts for oil services related directly to exploration, development, and exploitation activities shall be carried out in accordance with the terms of the oil contract and the following principles:

a) Ensuring the efficiency of the project investment, transparency and fairness in the bidding process and contract signing;

b) Suitability with the characteristics of the oil and gas industry in exploration, development, and exploitation of oil and gas fields;

c) Prioritizing the use of oil services that Vietnamese organizations and individuals are capable of providing.”

11. Article 43 is amended and supplemented as follows:

“Article 43. Rights and obligations of joint venture enterprises

In the case where an oil contract is concluded in the form of a joint venture contract, the joint venture enterprise enjoys the rights and fulfills the obligations agreed upon in the joint venture contract, the rights and obligations of the contractor are stipulated in the Oil Law, this Decree, and relevant legal regulations.”

12. Supplement Article 43a as follows:

“Article 43a. Taxes, fees, and charges applicable to oil activities

Organizations and individuals conducting oil activities shall declare and pay taxes, fees, and charges in accordance with the laws on taxes, fees, and charges.”

13. Repeal Chapter V, Article 64, and Article 65

14. Clause 1 of Article 66 is amended and supplemented as follows:

“1. The Ministry of Industry and Trade shall examine oil contracts, submit them for consideration and approval by the Prime Minister; examine and submit to the Prime Minister for decision on the transfer of rights and obligations of the parties in oil contracts; issue Investment Certificates and amended Investment Certificates for oil contracts in accordance with the Oil Law and relevant legal regulations.”

15. Supplement Article 66a as follows:

“Article 66a. Procedures for examining oil contracts and issuing Investment Certificates

a) The request for review of the oil and gas contract submitted by the Vietnam Oil and Gas Group;

b) The economic and technical explanation prepared by the Vietnam Oil and Gas Group;

b) An economic and technical explanation;

c) A certified copy of the Business Registration Certificate for organizations; Identity card or passport for individual investors participating in the oil contract;

d) Draft of the oil contract;

đ) Legal documents related to the basis for negotiating the oil contract.

The examination dossier for oil contracts submitted to the Ministry of Industry and Trade consists of eight sets, including one original set.

2. Examination procedures for oil contracts and issuance of Investment Certificates

a) Within five working days from the date of receipt of a complete examination dossier for oil contracts, the Ministry of Industry and Trade sends the dossier to relevant ministries and sectors for comments;

b) Within fifteen working days from the date of receipt of the dossier, ministries and sectors send their comments in writing to the Ministry of Industry and Trade. If an agency does not provide written comments within the above period, it is deemed to agree with the recommendations in the examination dossier for oil contracts;

c) Within thirty-five working days from the date of receipt of a complete dossier, the Ministry of Industry and Trade conducts the examination, submits the examination results and recommendations to the Prime Minister for consideration and approval of the oil contract;

d) Based on the Prime Minister's approval of the oil contract, the Vietnam Oil and Gas Group and the contractor proceed to sign the oil contract;

đ) Within ten working days from the date of receipt of the original signed oil contract, the Ministry of Industry and Trade examines and issues the Investment Certificate.”

16. Supplement Article 66b as follows:

“Article 66b. Procedures for examining the transfer of rights and obligations in oil contracts and issuing amended Investment Certificates

1. The examination dossier for the transfer of rights and obligations in oil contracts includes:

a) A request for examination by the Vietnam Oil and Gas Group regarding the transfer of rights and obligations of the parties involved in the oil contract;

b) A certified copy of the Business Registration Certificate for organizations; Identity card or passport for individual investors participating in the oil contract;

c) Contract for the transfer of rights and obligations in the oil contract;

d) Agreement to amend the oil contract.

The examination dossier for the transfer of rights and obligations in oil contracts submitted to the Ministry of Industry and Trade consists of eight sets, including one original set.

2. Procedures for examining the transfer of rights and obligations in oil contracts and issuing amended Investment Certificates.

a) Within five working days from the date of receipt of a complete examination dossier for the transfer of rights and obligations in oil contracts, the Ministry of Industry and Trade sends the dossier to relevant ministries and sectors for comments;

b) Within fifteen working days from the date of receipt of the dossier, ministries and sectors send their comments in writing to the Ministry of Industry and Trade. If an agency does not provide written comments within the above period, it is deemed to agree with the recommendations in the examination dossier for the transfer of rights and obligations in oil contracts;

c) Within thirty-five working days from the date of receipt of a complete dossier, the Ministry of Industry and Trade conducts the examination, submits the examination results along with the comments of ministries and sectors and recommendations to the Prime Minister for consideration and approval of the transfer of rights and obligations in the oil contract;

d) Within ten working days from the date of receipt of the Prime Minister's approval of the transfer of rights and obligations in the oil contract, the Ministry of Industry and Trade examines and issues the amended Investment Certificate.”

17. Repeal Chapter VIII.

18. Amend wording:

a) The phrase "state management agency for oil" in Decree No. 48/2000/NĐ-CP dated September 12, 2000, of the Government detailing the implementation of the Oil Law is replaced by the phrase "Ministry of Industry and Trade";

b) The phrase "Vietnam Oil Corporation" in Decree No. 48/2000/NĐ-CP dated September 12, 2000, is replaced by the phrase "Vietnam Oil and Gas Group".

Article 3. Amending and supplementing some articles of the Tendering Regulation

1. Clause 4 shall be amended and supplemented as follows:

"Article 4. Open tendering

The open tendering form shall be applied on the principle of competition, fairness, and transparency. All organizations and individuals meeting the conditions stipulated in Article 5 of this Regulation shall be eligible to participate in bidding."

2. Supplementing Clause 4a as follows:

"Article 4a. Competitive bidding invitation

Competitive bidding invitation shall be applied in cases where a petroleum block has complex geological conditions, and at the time of the bidding deadline, there are only a maximum of two organizations or individuals capable of meeting the requirements and registering to participate. The Vietnam Oil and Gas Group selects the organization or individual with the best bidding proposal, reports the selection results to the Ministry of Industry and Trade for review, and submits them to the Prime Minister for consideration and approval."

3. Article 6 shall be amended and supplemented as follows:

"Article 6. Tendering indicators

b) Minimum work commitment and minimum financial commitment;

a) The ratio of profit oil and gas distribution;

d) Cost recovery ratio.

c) The participation rate of the Vietnam Oil and Gas Group or its authorized member enterprises participating as the oil and gas contractor.

2. Based on the specific potential of each area or block, the Inviting Party supplements one or more additional tendering indicators such as cost recovery ratio, signature bonus, production bonus, reference document fees, and training costs in the tender documentation.

3. Mineral resource tax, corporate income tax, other types of taxes, fees, and charges shall be implemented according to the laws on taxes, fees, and charges."

4. Article 8 is amended and supplemented as follows:

"Article 8. Tendering Plan

1. The Inviting Party establishes a tendering plan for each area or block and reports it to the Ministry of Industry and Trade.

a) List of blocks to be tendered and preliminary assessment of the oil and gas potential of each block;

a) Preliminary assessment of the petroleum potential of each area or block;

c) Tender criteria;

d) Bid evaluation method.

d) Bidding evaluation method;

đ) Tendering form.

3. Within fifteen working days from the date of receiving all tendering plan documentation, the Ministry of Industry and Trade completes the review and reports the results to the Prime Minister for consideration and approval."

5. Supplementing Article 8a as follows:

"Article 8a. Overall Petroleum Block Tendering Plan

Before October 31 each year, the Vietnam Oil and Gas Group prepares the overall petroleum block tendering plan for the following year, submits it to the Prime Minister, and simultaneously sends it to the Ministry of Industry and Trade for review."

6. Article 15 is amended and supplemented as follows:

"Article 15. Bidding Evaluation Organization

The Inviting Party establishes a bidding evaluation team consisting of experts from the Inviting Party. The Inviting Party invites relevant ministry and sector experts to join the bidding evaluation team. The operating regulations of the bidding evaluation team are stipulated by the Inviting Party. The bidding evaluation process shall be completed within twenty working days from the bid opening date."

7. Article 17 is amended and supplemented as follows:

"Article 17. Review of Tendering Results

The Ministry of Industry and Trade establishes an inter-ministerial working group with the participation of representatives from relevant ministries and sectors to review the tendering results. The operating regulations of the inter-ministerial working group are stipulated by the Ministry of Industry and Trade.

Within twenty-five working days from the date of receiving all related documentation on the tendering results, the Ministry of Industry and Trade reports the reviewed tendering results to the Prime Minister."

8. Article 20 shall be amended and supplemented as follows:

"Article 20. Direct Assignment Procedure

The direct assignment procedure shall be carried out in the following steps:

1. The Inviting Party submits to the Ministry of Industry and Trade for the direct assignment, specifying the area or block for direct assignment, reasons for requesting direct assignment, the assigned organization or individual, and the tendering indicators and conditions.

2. The Prime Minister reviews and approves the direct assignment results based on the review report of the Ministry of Industry and Trade."

9. Article 23 is amended and supplemented as follows:

"Article 23. Effective Date

This Regulation applies to the selection of partners to sign oil and gas contracts for implementing exploration and exploitation projects."

10. The phrase "Vietnam Oil Corporation" in the Tendering Regulation for exploration and exploitation projects issued together with Decree No. 34/2001/NĐ-CP dated July 6, 2001 of the Government is replaced by the phrase "Vietnam Oil and Gas Group"."

Article 4. Effective date

This Decree takes effect from February 14, 2010.

Article 5. Responsibilities for Implementation

The Ministry of Industry and Trade is responsible for guiding the implementation of this Decree.

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.