Petroleum Law No. 12/2022/QH15

LAW

PETROLEUM

On the basis of the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Petroleum Law.

                                                           

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law regulates basic investigations on petroleum and petroleum activities within the mainland, islands, and maritime zones of the Socialist Republic of Vietnam.

Article 2. Applicability

This Law applies to agencies, organizations, and individuals, both domestic and foreign, related to basic investigations on petroleum and petroleum activities.

Article 3. Explanation of Terms

In this Law, the following terms shall be understood as follows:

1. Petroleum includes crude oil, natural gas, and solid or semi-solid hydrocarbons in their natural state, unconventional petroleum. Unconventional petroleum includes coalbed methane, shale oil or tar sands, shale gas or tight gas, clathrates, asphalt, and other forms that may exist.

2. Basic investigation on petroleum refers to research, surveying, and investigating geological formation and material composition, conditions, and laws of petroleum generation with the aim of evaluating petroleum potential and prospects, serving as a basis for directing petroleum exploration and search activities.

3. Petroleum activities include petroleum exploration and search activities, development of petroleum fields, petroleum extraction, and removal of petroleum facilities.

4. Petroleum contract is a written agreement signed between the Vietnam Oil and Gas Group and the contractor to conduct petroleum activities.

5. Product sharing contract is a petroleum contract stipulating the division of products among the parties based on production volume from petroleum activities within the contractual area; the contractor has the right to recover costs from extracted production, bears full financial, technical responsibility, and assumes all risks.

6. Clathrate is a mixture of hydrocarbons and water in a solid state in nature, existing in crystalline ice form.

7. Oil and gas projects includes drilling platforms, production platforms, auxiliary platforms, storage tanks, floating storage units, pipeline systems, mooring buoys, wells, and combinations of vessels, machinery, equipment related structures manufactured, constructed, buried, and installed either permanently or temporarily to serve petroleum activities.

8. Shale oil or tar sands are liquid hydrocarbons in their natural state contained in shale or claystone formations.

9. Initial in-place petroleum is the quantity of petroleum initially present in natural accumulations, discovered or undiscovered by drilling wells, calculated or forecasted.

10. Crude oil includes liquid hydrocarbons in their natural state, asphalt, ozokerite, and condensate. Condensate is liquid hydrocarbons obtained from natural gas through condensation or extraction methods.

11. Petroleum services are commercial, technical, and technological service activities serving basic investigations on petroleum and petroleum activities.

12. Petroleum project is an independent project or a set of component projects established to carry out petroleum activities.

13. Recovery factor is the ratio between the amount of recoverable petroleum compared to the initial in-place petroleum in the field or reservoir.

14. General plan for developing a petroleum field is a document presenting general research contents on the necessity, feasibility, and preliminary effectiveness of a petroleum field development project to select an appropriate development plan, taking into account the possibility of future expansion of the field or area (if applicable).

15. Early production plan for a petroleum field is a document presenting research contents on the necessity, level of feasibility, and effectiveness of an early development plan for a petroleum field to simultaneously extract petroleum and collect additional information about the field, reservoir, or exploitation dynamics with the goal of optimizing petroleum field development.

16. Development plan for a petroleum field is a document presenting research contents on the necessity, level of feasibility, and effectiveness of a selected development plan for a petroleum field as the basis for implementing petroleum field development.

17Removal plan for petroleum facilities is a document presenting research contents on the plan, technical solutions, environmental measures, costs, and implementation schedule for removing petroleum facilities.

18. Petroleum extraction is an activity carried out to recover petroleum from a petroleum field.

19. Shale gas or tight gas are gaseous hydrocarbons in their natural state contained in shale or claystone formations.

20. Associated gas are gaseous hydrocarbons separated during the extraction and processing of crude oil.

21. Coalbed methane are gaseous hydrocarbons, primarily methane, contained in coal seams.

22. Natural gas are gaseous hydrocarbons in their natural state, extracted from wells, including associated gas.

23. Petroleum block is an area defined by geographic coordinates, allocated for conducting petroleum activities.

24. Open petroleum block is a petroleum block without a petroleum contract.

25. Petroleum field is a combination of geological formations underground confirmed to have one or more reservoirs, strata, or layers containing petroleum.

26. Marginal petroleum field is a petroleum field that cannot be developed due to investment efficiency approaching the minimum threshold with current technology and economic, technical conditions at the time of evaluation.

27. Operator is an organization representing the contractor parties under a petroleum contract to manage petroleum activities within the scope authorized by the petroleum contract.

28. CONTRACTOR is an investor conducting petroleum activities based on a petroleum contract.

29. Petroleum discovery is a petroleum accumulation discovered by drilling wells.

30. Development of a petroleum field involves planning, designing, purchasing, manufacturing, constructing, and installing petroleum facilities to extract petroleum.

31. Participation interest refers to the rights, benefits, obligations, and responsibilities of the contractor in a petroleum contract. Each contractor's participation interest at each point in time is expressed as a percentage recorded in the petroleum contract and investment registration certificate.

32. Vietnam Oil and Gas Group is a state-owned enterprise with the international trading name of VIETNAM OIL AND GAS GROUP, abbreviated as PETROVIETNAM, and commonly referred to as PVN.

33. Petroleum exploration and search involves activities aimed at discovering petroleum accumulations and assessing those accumulations.

34. International petroleum industry practice refers to norms, standards, methods, procedures that have been accepted and widely used by oil and gas investors, countries conducting basic oil and gas surveys, and oil and gas activities worldwide.

35. Decommissioning of oil and gas facilities refers to activities carried out to dismantle, remove, destroy, modify, temporarily or permanently preserve, or other technical measures consistent with the provisions of the law and international oil and gas industry practices for oil and gas facilities no longer necessary for oil and gas operations.

36. Cost recovery refers to the act of reclaiming the amounts of expenses incurred to implement oil and gas activities from the production volume of oil and gas within the permitted contractual area according to the provisions of the oil and gas contract.

37. Oil and gas reserves refers to the estimated quantity of oil and gas that can be commercially recovered from the original oil and gas reservoir under certain economic and technical conditions.

38. Commercial discovery announcement refers to the written notification sent by the contractor to the Vietnam Oil and Gas Group regarding the discovery of oil and gas that can be economically exploited.

Article 4. Application of the Petroleum Law, related laws, foreign laws, and international oil and gas industry practices

1. In cases where there are different provisions between the Petroleum Law and other laws on the same specific issue related to basic petroleum surveys and petroleum activities, the Petroleum Law shall apply, including:

a) Authority, procedures, and processes for investing in petroleum projects;

b) The approval authority of the Board of Members of the Vietnam Oil and Gas Group and the responsibility of the State Capital Management Committee to participate in opinions on the use of capital of the Vietnam Oil and Gas Group, wholly state-owned enterprises when exercising rights to participate in petroleum contracts, preemptive purchase rights in petroleum contracts, and when implementing petroleum activities at various stages of petroleum contracts, projects; the participation of the Vietnam Oil and Gas Group with enterprises with contributions from the Vietnam Oil and Gas Group in petroleum contracts; principles for handling costs; management and use of information, data, documents, samples, petroleum facilities, and other assets installed and invested in completed petroleum contracts to continue implementing petroleum activities, decommissioning of received facilities, and decommissioning processing;

c) The selection of contractors to sign petroleum contracts.

2. Other laws enacted after this Law comes into effect, if they provide different provisions on authority, procedures, and conditions for conducting basic petroleum surveys and petroleum activities than those stipulated in the Petroleum Law, must clearly specify whether to implement or not according to the provisions of the Petroleum Law, and the content to be implemented according to the provisions of such other laws.

3. In cases where Vietnamese law does not provide regulations, parties may agree in the petroleum contract to apply foreign laws or international oil and gas industry practices, provided that the consequences thereof do not violate fundamental principles of Vietnamese law.

Article 5. State policy on oil and gas

1. The State encourages domestic and foreign organizations and individuals to invest in conducting basic petroleum surveys and petroleum activities in Vietnam to increase oil and gas reserves and production volumes in potential areas, deep and far-off waters, contributing to ensuring national energy security, developing the national economy, and protecting legitimate rights and interests of Vietnam in accordance with international law.

2. The State guarantees ownership rights over investment capital, assets, and other lawful rights and interests of domestic and foreign organizations and individuals conducting basic petroleum surveys and petroleum activities in Vietnam.

3. The State does not collect sea area usage fees for conducting basic petroleum surveys and petroleum activities, and for processing and transporting extracted oil and gas resources from Vietnam's maritime zones to shore via pipelines according to petroleum contracts.

4. The State implements preferential investment policies for block and field petroleum projects to encourage exploration, development, and exploitation of unconventional oil and gas, blocks and fields located in deep waters, far-off areas, regions with particularly difficult geographic conditions, complex geological formations, marginal oil fields; increasing oil and gas recovery rates.

5. The State encourages domestic and foreign organizations and individuals to share and access infrastructure and petroleum facilities to conduct basic petroleum surveys and petroleum activities according to agreements.

Article 6. Principles for conducting basic petroleum surveys and petroleum activities

1. Petroleum resources of Vietnam belong to the entire people, represented by the State and managed uniformly.

2. Organizations and individuals conducting basic petroleum surveys and petroleum activities must respect Vietnam's independence, sovereignty, territorial integrity, sovereign rights, jurisdiction, ensure national interests and security, comply with Vietnamese laws and international treaties to which the Socialist Republic of Vietnam is a member.

3. Organizations and individuals conducting basic petroleum surveys and petroleum activities must comply with Vietnamese laws on national defense, national security, public order and safety, community health, environmental protection, climate change response, oil spill response, resource protection, cultural heritage preservation, and historical-cultural relic conservation.

4. Organizations and individuals conducting basic petroleum surveys and petroleum activities must use modern technology and techniques, adhere to national technical standards, and apply appropriate standards in accordance with Vietnamese laws and international oil industry practices.

5. Organizations and individuals conducting petroleum activities must purchase insurance for construction projects, equipment, and means of transport serving petroleum activities, environmental damage liability insurance, civil liability insurance for third parties, human insurance, and other insurances as prescribed by Vietnamese laws and international oil industry practices.

6. All samples, materials, information, and data obtained during the implementation of basic petroleum surveys and petroleum activities shall be managed by the State. The collection, submission, management, use, and confidentiality of samples, materials, information, and data obtained during the implementation of basic petroleum surveys and petroleum activities must comply with Vietnamese laws, agreements for conducting basic petroleum surveys, and petroleum contracts.

Article 7. Basis for Conducting Petroleum Activities

1. Petroleum activities are carried out based on petroleum contracts signed for petroleum blocks according to the list approved by the Prime Minister, except for cases of exploiting residual reserves in oil fields, clusters, or blocks as stipulated in point c, Clause 2 and point b, Clause 3, Article 41 of this Law.

2. The Prime Minister approves the list of petroleum blocks and the adjusted list of petroleum blocks based on the proposal of the Vietnam Oil and Gas Group and the results of the review and reports of the Ministry of Industry and Trade.

3. The Government shall specify the dossier, procedures, and processes for reviewing and approving the list of petroleum blocks and the adjusted list of petroleum blocks.

Article 8. Requirements for Petroleum Safety

1. Organizations and individuals conducting petroleum activities must establish a safety zone around petroleum facilities.

2. The safety zone around offshore petroleum facilities includes:

a) A prohibited entry zone for offshore petroleum facilities, excluding underground structures, defined as a radius of 500 meters from the outermost edge of the facilities in all directions including anchoring positions for floating vessels and mobile structures, except in special cases approved by

b) A prohibited anchoring or underwater activity zone within two nautical miles from the outermost edge of the offshore petroleum facilities including underground structures; vessels and ships are not allowed to anchor or conduct underwater activities, except in special cases approved by the contractor or

3. The safety zone around onshore petroleum facilities is determined around onshore facilities and equipment serving petroleum activities, depending on the geographical and social conditions of the location where petroleum activities are conducted, for the purpose of ensuring safety for people and means of transport during the implementation of petroleum activities.

4. Organizations and individuals conducting petroleum activities must implement the following petroleum safety measures:

a) Develop safety management documents, including a safety management program, risk assessment report, and emergency response plan, to be submitted to the competent state management agency for approval;

b) Establish, maintain, and develop a safety management system to control risks throughout petroleum activities;

c) Establish and maintain an effective emergency response system to minimize losses when incidents or accidents occur that pose hazards to people, the environment, or property;

d) Equip with warning systems capable of detecting potential dangerous situations that may endanger facilities, the environment, and automatically notify and inform the control center for unmanned offshore petroleum facilities;

đ) Have standby vessels to ensure timely rescue in emergencies for manned offshore petroleum facilities. Operators of petroleum activities in nearby fields or blocks may cooperate to share standby vessels but must ensure continuous availability of standby vessels for timely rescue in emergencies.

5. The Government shall provide detailed regulations on this matter.

Article 9. Prohibited acts in basic investigation on oil and gas and oil and gas activities

1. Conducting basic investigation on oil and gas and oil and gas activities without permission from the competent state management agency.

2. Exploiting basic investigation on oil and gas and oil and gas activities to affect national defense, security, national interests, rights and legitimate interests of organizations and individuals; causing environmental pollution.

3. Exploiting basic investigation on oil and gas and oil and gas activities to extract other natural resources and minerals.

4. Obstructing lawful activities in basic investigation on oil and gas and oil and gas activities.

5. Intentionally damaging oil and gas assets, equipment, facilities; destroying samples, information, data obtained during basic investigation on oil and gas and oil and gas activities.

6. Providing illegally samples, information, data obtained from basic investigation on oil and gas and oil and gas activities.

7. Corruption, loss, waste in carrying out basic investigation on oil and gas and oil and gas activities.

Chapter II

BASIC INVESTIGATION ON OIL AND GAS

Article 10. Organization of conducting basic investigation on oil and gas

1. Based on energy strategy, planning for mineral resources and proposals from organizations meeting conditions stipulated in Article 12 of this Law, the Ministry of Industry and Trade shall take the lead and coordinate with the Ministry of Natural Resources and Environment and relevant ministries and agencies to develop a list of basic investigation projects on oil and gas ensuring comprehensiveness and synchronization, to be submitted to the Prime Minister for approval. The list of basic investigation projects on oil and gas includes contents on the main organizing entity, funding sources and budget estimates, implementation time, and organizational forms for basic investigation on oil and gas.

2. Funding for conducting basic investigation on oil and gas is allocated from the state budget, Vietnam Oil and Gas Group's funds, and funds of organizations and individuals.

3. Forms of organization for implementing basic investigation projects include:

a) Assigning tasks when state agencies or state-owned enterprises are the main organizers of the project;

b) Agreement between the Vietnam Oil and Gas Group and another organization when that organization is the main organizer of the project.

4. Based on the approved list of basic investigation projects on oil and gas, the Ministry of Industry and Trade shall take the lead and coordinate with the Ministry of Natural Resources and Environment and relevant ministries and agencies to perform the following tasks:

a) Approving detailed outlines and cost estimates for implementing basic investigation projects on oil and gas; approving the content of agreements between the Vietnam Oil and Gas Group and the main organizing entity for basic investigation on oil and gas as stipulated in point b, Clause 3 of this Article;

b) Guiding the implementation of basic investigation projects on oil and gas; inspecting and supervising the implementation of basic investigation projects on oil and gas;

c) Accepting and approving the results of basic investigation projects on oil and gas;

d) Auditing expenditures and approving final accounts from state budget sources (if applicable), expenditures of the Vietnam Oil and Gas Group (if applicable) for implementing basic investigation projects on oil and gas.

5. Reports on the results of basic investigation on oil and gas are updated into the national database on geology and mineral resources.

6. The Government shall provide detailed regulations for this Article.

Article 11. Contents of basic investigation on oil and gas

1. Study and survey geological and geophysical conditions, investigate geological formation and material composition, drill for parameters to collect data and samples, prepare reports, construct regional geological and geophysical maps and specialized maps to serve oil and gas exploration activities, combine research on geological disasters, environmental geology, and other minerals, prepare related specialized maps.

2. Search for signs of oil and gas, assess potential and prospects for oil and gas, delineate and classify according to objects and groups of geological formations to determine new areas with oil and gas, guide oil and gas exploration activities.

Article 12. Conditions for implementing basic investigation on oil and gas

1. The organization primarily responsible for conducting basic investigation on oil and gas must have sufficient financial, technical capacity, and experience in basic investigation on oil and gas as prescribed by the Government.

2. An organization that does not meet the required conditions must form a consortium with another organization or individual to satisfy the conditions for conducting basic investigation on oil and gas as stipulated in Clause 1 of this Article.

3. Individuals participating in conducting basic investigation on oil and gas must form a consortium with an organization to satisfy the conditions for conducting basic investigation on oil and gas as stipulated in Clause 1 of this Article.

Article 13. Rights and obligations of organizations conducting basic investigation on oil and gas

1. Organizations conducting basic investigation on oil and gas shall have the following obligations:

a) Adhere to the approved project content;

b) Ensure honesty and completeness in collecting and compiling geological oil and gas materials and information; maintain confidentiality of information during basic investigation on oil and gas;

c) Protect minerals and other resources during basic investigation on oil and gas;

d) Submit the report on the results of basic investigation on oil and gas to the Ministry of Natural Resources and Environment to update the national database on geology and minerals.

2. Organizations conducting basic investigation on oil and gas have the right to transfer outside the country the materials obtained during basic investigation on oil and gas, types of samples with quantities and varieties suitable for analysis and experimental processing as approved in the project and comply with laws on state secrets protection and other relevant laws.

3. Organizations outside state agencies and state-owned enterprises conducting basic investigation on oil and gas have the rights stipulated in Clause 2 of this Article and the following rights:

a) Manage the exploitation and use of information, data, and results of basic investigation on oil and gas according to the approved agreement;

b) Use information under the confidentiality commitment, be entitled to recover costs when participating in bidding, signing oil and gas contracts at oil and gas blocks in areas where basic investigation has been conducted according to the project.

Article 14. Management, exploitation, and use of samples, materials, information, data, and results of basic investigation on oil and gas

1. State agencies and state-owned enterprises primarily responsible for conducting basic investigation on oil and gas manage samples, materials, information, data, and results of basic investigation on oil and gas conducted by themselves; other organizations primarily responsible for conducting basic investigation on oil and gas submit samples, materials, information, data, and results of basic investigation on oil and gas approved to Vietnam Oil and Gas Group for management.

2. Organizations and individuals may exploit and use materials, information, data, and results of basic investigation on oil and gas for research, evaluation, and proposal to sign oil and gas contracts and must pay fees for exploiting and using oil and gas materials according to laws on fees and charges or according to the approved agreement.

3. Organizations and individuals accessing, referencing, exploiting, and using materials, information, data, and results of basic investigation on oil and gas must maintain confidentiality of information according to laws and agreements.

4. The Government shall provide detailed regulations on this matter.

Chapter III

SELECTION OF CONTRACTORS TO SIGN OIL AND GAS CONTRACTS

Article 15. Forms of selecting contractors

The selection of contractors to sign oil and gas contracts at open oil and gas blocks shall be carried out through one of the following forms:

1. Open tendering;

2. Restricted tendering;

3. Competitive bidding;

4. Direct award.

Article 16. Conditions for participating in tendering to select contractors

Organizations and individuals participating in tendering to select contractors to sign oil and gas contracts must meet the following conditions:

1. Organizations must have registration for establishment and operation in accordance with the laws of the country where they bid; individuals must have full capacity for civil acts according to the laws of the country of which they are citizens;

2. They must have sufficient financial, technical capabilities, and experience in oil and gas activities; if organizations or individuals do not meet this condition, they must form a consortium with other organizations or individuals to meet the conditions for participating in tendering.

Article 17. Plan for selecting contractors

1. The plan for selecting contractors is established for one or several oil and gas blocks included in the approved list of oil and gas blocks under Clause 2, Article 7 of this Law to implement the selection of contractors to sign oil and gas contracts.

2. The main contents of the plan for selecting contractors include:

a) List of oil and gas blocks and the method of selecting contractors for each block;

b) Preliminary assessment of the potential of oil and gas for each oil and gas block;

c) Time schedule;

d) Criteria for selecting contractors;

đ) Evaluation methods.

Article 18. Open tendering

1. The selection of contractors to sign oil and gas contracts through the form of open tendering is applied on the principle of competition for oil and gas blocks that do not fall within the cases stipulated in Articles 19, 20, and 21 of this Law.

2. The process of open tendering includes the following steps:

a) Issuing a tender invitation;

b) Registration for tender participation;

c) Issuing tender documents;

d) Receiving tender documents, opening tenders, and evaluating tender documents;

đ) Reviewing, approving, announcing the results of contractor selection and basic economic and technical conditions of the oil and gas contract;

e) Negotiating and finalizing the oil and gas contract;

g) Reviewing, approving, and signing the oil and gas contract.

Article 19. Restricted tendering

1. The selection of contractors to sign oil and gas contracts through the form of restricted tendering is applied in cases where there are special requirements that only a few contractors can meet.

2. The process of restricted tendering includes the steps as specified in Clause 2, Article 18 of this Law for open tendering.

Article 20. Competitive bidding

1. The selection of contractors to sign oil and gas contracts through the form of competitive bidding is applied in cases where the oil and gas block is not included in the current plan for selecting contractors and is proposed by at least two organizations or individuals meeting the conditions stipulated in Article 16 of this Law to sign oil and gas contracts.

2. The process of competitive bidding includes the following steps:

a) Issuing a competitive bidding announcement;

b) Registration for participation in competitive bidding;

c) Issuing competitive bidding documents;

d) Receiving and evaluating competitive bidding documents.

đ) Reviewing, approving, announcing the results of contractor selection and basic economic and technical conditions of the oil and gas contract;

e) Negotiating and finalizing the oil and gas contract;

g) Reviewing, approving, and signing the oil and gas contract.

Article 21. Tender designation

Article 21. Direct award

1. The selection of contractors to sign oil and gas contracts through the form of direct award is applied in the following cases:

a) Related to national defense and security;

b) Only one organization or individual meeting the conditions stipulated in Article 16 of this Law proposes to sign an oil and gas contract after being widely informed for 30 days but no other contractors show interest;

c) A contractor currently implementing an oil and gas contract proposes additional investment within the same contract area with economic and technical conditions for a new oil and gas contract after the signed contract expires.

2. The process of direct award includes the following steps:

a) Issuing a request document for direct award;

b) Receiving and evaluating proposal documents;

c) Reviewing, approving, announcing the results of contractor selection and basic economic and technical conditions of the oil and gas contract;

đ) Reviewing, approving, and signing the oil and gas contract.

Article 22. Criteria for selecting contractors and methods for evaluating tender documents, competitive bidding documents, and proposal documents.

1. The criteria for selecting contractors include:

a) The contractor's capacity and experience;

b) Technical conditions suitable for each oil and gas block;

c) Economic conditions suitable for each oil and gas block.

2. The method for evaluating tender documents, competitive bidding documents, and proposal documents shall be based on scoring, comparison, and synthesis.

3. The Government shall provide detailed regulations on this Article.

Article 23. Reviewing the results of contractor selection

A contractor is proposed for selection if they meet the following conditions:

1. The tender document, competitive bidding document, or proposal document is valid;

2. They meet the requirements regarding capacity and experience in oil and gas activities;

3. They meet the technical requirements;

4. They meet the economic requirements;

5. They have a tender document or competitive bidding document ranked first.

Article 24. Organizing the selection of contractors

1. The Vietnam Oil and Gas Group has the responsibility to:

a) Develop plans for selecting contractors, report to the Ministry of Industry and Trade for review, and submit for approval;

b) Announce invitations to bid or competitive bidding; issue tender documents, competitive bidding documents, or request documents for designated bidding; organize the evaluation of tender documents, competitive bidding documents, or proposal documents;

c) Report the results of contractor selection to the Ministry of Industry and Trade for review and submission for approval;

d) Announce the results of contractor selection and the basic economic and technical conditions of the oil and gas contract, organize negotiations, and complete the contents of the oil and gas contract; report to the Ministry of Industry and Trade for review and submission to the Prime Minister for approval as the basis for signing the oil and gas contract.

2. The Government stipulates the documents, procedures, and processes for selecting contractors to sign oil and gas contracts.

Article 25. Tender guarantee

1. Bidders are obligated to submit tender guarantees according to the requirements in the tender invitation documents.

2. Bidders will be refunded their tender guarantees when they do not win the bid or after the oil and gas contract is signed.

Chapter IV

OIL AND GAS CONTRACTS

Article 26. Approving oil and gas contracts

1. After completing negotiations on the oil and gas contract, based on the approved results of contractor selection, the Vietnam Oil and Gas Group reports to the Ministry of Industry and Trade for review and submits to the Prime Minister for approval of the contents of the oil and gas contract before the Vietnam Oil and Gas Group signs the oil and gas contract.

2. The content of reviewing oil and gas contracts includes:

a) The validity of the documents submitted for review and approval of the contents of the oil and gas contract;

b) The reasonableness of the results of negotiating the oil and gas contract;

c) The consistency of the draft oil and gas contract with the approved results of contractor selection and relevant legal provisions.

3. The Prime Minister's approval of the contents of the oil and gas contract serves as the basis for contractors to fully execute the oil and gas contract and replaces the approval of the investment proposal for oil and gas projects under the Investment Law and the Public Investment Law.

4. The Government stipulates the documents, procedures, and processes for reviewing and approving oil and gas contracts.

Article 27. Issuing investment registration certificates

1. Based on the signed oil and gas contract, the Ministry of Industry and Trade issues an investment registration certificate for the contractor to carry out oil and gas activities.

2. The main contents of the investment registration certificate include:

a) The name of the oil and gas contract, oil and gas block, and oil and gas project;

b) Objectives and scale;

c) Implementation location;

d) Management office;

đ) Contractors, participation interest ratios, and managers;

e) Minimum financial commitment during the exploration phase;

g) The contractor's financial, technical responsibilities, and risk assumption;

h) The contractor's right to recover costs from oil production according to the oil and gas contract;

i) Duration of the oil and gas contract;

k) Effective date of the oil and gas contract.

3. The Government stipulates the documents, procedures, and processes for issuing investment registration certificates.

Article 28. Adjustment of the Content of Oil and Gas Contracts and Adjustment of Investment Registration Certificates

1. The adjustment of the content of oil and gas contracts shall be approved by the Prime Minister based on the proposal of the Vietnam Oil and Gas Group and the review report of the Ministry of Industry and Trade.

2. The Ministry of Industry and Trade adjusts the investment registration certificate for the contractor based on the adjusted oil and gas contract that has been approved.

3. The Government shall stipulate the dossier, procedures, and processes for reviewing and approving the adjustment of oil and gas contracts and the adjustment of investment registration certificates.

Article 29. Types of Oil and Gas Contracts

1. Product-sharing oil and gas contracts.

2. Other types of oil and gas contracts.

Article 30. Main Contents of Oil and Gas Contracts

1. The main contents of product-sharing oil and gas contracts include:

a) Legal status and rights of the contractor signing the contract;

b) Object of the contract;

c) Limitation of area and progress of returning the contract area;

d) Effectiveness of the contract, duration of the contract, stages of the contract, conditions for extending the stages, and adjustment and extension of the contract duration;

đ) Rights and obligations of the parties signing the contract, the operator;

e) Minimum work commitments and minimum financial commitments according to the stages of the contract;

g) Principles of product sharing and determination of recovery costs;

h) Principles for selecting contractors providing oil and gas services and goods serving oil and gas activities;

i) Rights of the host country over oil and gas assets and facilities after recovery costs and upon termination of the contract;

k) Conditions for transferring rights and obligations of the parties signing the contract;

l) Rights of the Vietnam Oil and Gas Group to participate in the contract when there is a commercial discovery and to have priority purchase before the contractor transfers their participation rights, rights, and obligations in the contract;

m) Commitments regarding commissions, training, research funds, and preference for using Vietnamese labor and services;

n) Responsibilities for environmental protection and ensuring safety during oil and gas operations; obligation to dismantle oil and gas facilities;

o) Conditions for terminating the contract and handling violations;

p) Methods for resolving disputes arising from the contract and applicable laws.

2.The Prime Minister decides the main contents of other types of oil and gas contracts suitable for the characteristics of oil fields, field clusters, or oil blocks.

3. The Government shall issue model contracts for product-sharing oil and gas contracts.

Article 31. Duration of Oil and Gas Contracts

1. The duration of oil and gas contracts shall not exceed thirty years, including a maximum of five years for the exploration phase, except in cases provided for in Clause 2 of this Article.

2. For oil blocks listed in the list of oil blocks benefiting from preferential investment policies and special investment incentives, the duration of oil and gas contracts shall not exceed thirty-five years, including a maximum of ten years for the exploration phase.

3. The duration of oil and gas contracts may be extended but not more than five years, and the duration of the exploration phase may be extended but not more than five years based on the approval of the Ministry of Industry and Trade, except in cases provided for in Clause 4 of this Article.

4. In exceptional cases due to national defense, security reasons, complex geological conditions, or unique practical difficulties in implementing oil and gas activities, or to ensure effective gas exploitation time, the Prime Minister approves the extension of the duration of oil and gas contracts and the exploration phase duration specified in Clause 3 of this Article based on the review of the Ministry of Industry and Trade.

5. After declaring a commercial discovery but without a market for consumption and without appropriate pipeline and processing facilities, the contractor may retain the discovered gas area. The retention period for the discovered gas area shall not exceed five years based on the approval of the Ministry of Industry and Trade. If the retention period for the discovered gas area expires without a market for consumption and without appropriate pipeline and processing facilities, the Prime Minister may consider extending the retention period for the discovered gas area but not exceeding two years based on the review of the Ministry of Industry and Trade. During the retention period for the discovered gas area, the contractor must carry out the works committed in the oil and gas contract.

6. In case of force majeure, the parties to the oil and gas contract agree on the method of temporarily suspending some rights and obligations under the contract; the Vietnam Oil and Gas Group reports to the Ministry of Industry and Trade for decision. The suspension period for some rights and obligations under the contract due to force majeure is calculated from the occurrence of the force majeure event until its cessation.

7. In cases due to national defense, security reasons, the temporary suspension period for some rights and obligations under the oil and gas contract is decided by the Prime Minister based on the proposal of the competent authority. 8. The extension period of the exploration phase, the retention period for the discovered gas area declared as a commercial discovery, and the suspension period for some rights and obligations under the contract due to force majeure or for national defense, security reasons are not included in the duration of the oil and gas contract.

9. The Government shall stipulate the dossier, procedures, and processes for extending the duration of oil and gas contracts, extending the duration of the exploration phase, deciding the retention period for the discovered gas area, and deciding the suspension period for some rights and obligations under the contract due to force majeure or for national defense, security reasons.

9. The Government shall stipulate the dossier, procedure, and process for extending the term of oil and gas contracts, extending the exploration phase term of oil and gas, deciding on the retention period for discovered gas areas, and deciding on the suspension period for some rights and obligations under oil and gas contracts in cases of force majeure or for national defense and security reasons.

Article 32. Area, Restoration of Area, Expansion of Contract Area for Petroleum Exploration, Consolidation of Petroleum Discoveries, Petroleum Field

1. The area of a petroleum exploration contract includes the area of one or more petroleum blocks specified in the petroleum exploration contract.

2. The contractor shall have the obligation to restore part of the contract area at the end of each component phase of the exploration phase as stipulated in this Law and other relevant laws, and shall be responsible for dismantling the petroleum facilities within the restored area according to the provisions of this Law and other relevant regulations.

3. The contractor has the right to propose retaining the entire contract area or temporarily suspending the obligation to restore the contract area if the contractor proposes to continue exploration and evaluation of certain potential structures within the area that must be restored, subject to approval by the Ministry of Industry and Trade.

4. In cases where a commercially viable petroleum discovery extends beyond the area of an adjacent contiguous petroleum block, the contractor may propose expanding the contract area.

5. In cases where a commercially viable petroleum discovery extends beyond the area of one or more adjacent contiguous petroleum blocks with signed petroleum exploration contracts, the contractors may propose consolidating the petroleum discoveries and fields for joint evaluation and development to enhance economic efficiency and optimize exploitation of petroleum resources.

6. The contractor shall submit for consideration to the Vietnam Oil and Gas Group, report to the Ministry of Industry and Trade for review, and submit to the Prime Minister for approval the proposal to expand the contract area, consolidate petroleum discoveries and fields for joint evaluation and development. 7. In cases where it is necessary to construct projects, equipment outside the contract area to serve the exploitation, processing, and transportation of petroleum from the contract area, the contractor may propose such construction in the general development plan of the petroleum field, early production plan (if applicable), and development plan, and submit for review and approval in accordance with Articles 46, 47, and 48 of this Law.

8. The Government shall specify the documentation, procedures, and processes for submitting, reviewing, and approving retention or temporary suspension of the obligation to restore, expansion of the contract area, and consolidation of petroleum discoveries and fields.

Article 33. Level of Cost Recovery in Petroleum Exploration Contracts

The parties to a petroleum exploration contract may agree on the level of cost recovery for the contractor in the petroleum exploration contract as follows:

1. Up to 50% of the annual petroleum production volume for petroleum exploration contracts applied to ordinary petroleum blocks;

2. Up to 70% of the annual petroleum production volume for petroleum exploration contracts applied to petroleum blocks and fields benefiting from investment incentives;

3. Up to 80% of the annual petroleum production volume for petroleum exploration contracts applied to petroleum blocks and fields benefiting from special investment incentives.

Article 34. Language of Petroleum Exploration Contracts

The language used in petroleum exploration contracts and accompanying documents shall be Vietnamese and English or another commonly used foreign language agreed upon by the parties. The Vietnamese version and the English version or another commonly used foreign language version shall have equal legal force.

The language used in oil and gas contracts and accompanying documents shall be Vietnamese and English or another commonly used foreign language agreed upon by the parties. The Vietnamese and English versions or the version in another commonly used foreign language shall have equal legal validity.

Article 35. Termination of Effectiveness of Oil and Gas Contracts

1. The oil and gas contract terminates its effectiveness according to the provisions of the oil and gas contract or upon expiration of the term of the oil and gas contract without being extended as provided for in Clause 3 and Clause 4, Article 31 of this Law.

2. The oil and gas contract may terminate before the expiry date upon agreement of the parties to the contract on the condition that the contractor must fulfill all committed obligations and notify the Vietnam Oil and Gas Group at least six months prior to the proposed termination date of the oil and gas contract.

Article 36. Transfer of Rights and Obligations of Contractors in Oil and Gas Contracts

1. The contractor has the right to transfer the rights and obligations of the contractor in the oil and gas contract. The transfer of all or part of the rights and obligations of the contractor in the oil and gas contract must meet the following conditions:

a) The transferee commits to inherit the participation rights, rights, and obligations of the transferor and implement the contents of the signed oil and gas contract;

b) Both the transferor and the transferee must satisfy the conditions stipulated in this Law and other relevant laws;

c) The transferor is obligated to pay taxes, fees, and charges related to the transfer in accordance with the tax, fee, and charge laws and other relevant laws.

2. The transfer of rights and obligations of contractors in oil and gas contracts shall be approved by the Prime Minister based on the assessment of the Ministry of Industry and Trade and becomes effective upon registration of investment adjustment certificate. 3. The Government shall prescribe the dossier, procedures, and processes for submitting, assessing, and approving the transfer of rights and obligations of contractors in oil and gas contracts.

3. The Government shall stipulate the dossier, procedure, and process for submitting, reviewing, and approving the transfer of participation rights, rights, and obligations of contractors under oil and gas contracts.

Article 37. Dispute Resolution Arising from Oil and Gas Contracts

Disputes arising from oil and gas contracts shall first be resolved through negotiation and mediation. In cases where negotiation and mediation fail, disputes may be resolved through arbitration or court as specified in the oil and gas contract in accordance with the Investment Law and other relevant laws.

Article 38. Management Office of Foreign Operator in Oil and Gas Contracts

1. The foreign operator must establish a management office in Vietnam to implement the oil and gas contract. The management office shall have a seal, open bank accounts, recruit labor, and perform rights and obligations within the scope authorized by the oil and gas contract, management agreements among contractors, and Vietnamese laws.

2. The foreign operator may use one management office in Vietnam to manage and operate oil and gas activities under one or more oil and gas contracts in Vietnam. Management and operation costs for each oil and gas contract must be allocated and accounted for independently.

3. In case of changing the address of the management office or changing the head of the management office or re-acquiring the management office due to a change in the operator, the operator must submit a written notice to the investment registration authority where the management office is located.

4. In case of terminating the operations of the management office, the operator must submit a dossier notifying the termination of the management office's operations to the investment registration authority where the management office is located.

5. The Government shall prescribe the dossier, procedures, and processes for establishing, terminating operations, and changes as stipulated in Clause 3 of this Article.

Article 39. Exercise of Participation Right and Preemptive Purchase Right in Petroleum Contracts

1. The Vietnam Oil and Gas Group shall exercise its right to participate in petroleum contracts; its preemptive purchase right over a portion or the entire part of the participating interest that the contractor intends to transfer in signed petroleum contracts, based on the conditions for transfer agreed upon between the party intending to transfer and the potential transferee.

2. The Vietnam Oil and Gas Group shall accept the transfer of the entire participating interest, data, and existing petroleum facilities of the contractor in cases where the contractor decides to withdraw from the petroleum contract due to special reasons.

3. The Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for review and submit tothe Prime Minister for consideration and decision regarding the Vietnam Oil and Gas Group's exercise of participation rights, preemptive purchase rights, and acceptance of the transfer of the entire participating interest of the contractor in petroleum contracts.

4. The Government shall stipulate the dossier, procedures, and processes for submitting, reviewing, and approving the exercise of participation rights, preemptive purchase rights, and acceptance of the transfer of the entire participating interest of the contractor in petroleum contracts; management mechanisms, monitoring, utilization, and financial handling of assets and acceptance of participating interests from contractors due to special reasons.

Article 40. Proposing Additional Investment Plans and Signing New Petroleum Contracts Before the Expiry of Existing Petroleum Contracts

1. At least two years before the expiry of the petroleum contract, the contractor may propose additional investment plans aimed at increasing reserves, improving oil and gas recovery rates, and exploiting oil and gas within the same contract area under economically and technically feasible conditions to sign new petroleum contracts after the current contract expires.

2. Based on the proposal of the contractor implementing the petroleum contract, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for review and submit to the Prime Minister for consideration and approval of the designation of the contractor to sign new petroleum contracts in accordance with point c, Clause 1 and Clause 2, Article 21 of this Law.

3. The contractor signing a new petroleum contract may continue to use information, data, documents, samples, petroleum facilities, and other assets already installed and invested in the same contract area without paying usage fees to implement petroleum activities under the new contract, provided that the determination of the host country's benefits in the new petroleum contract takes into account that the contractor does not have to pay usage fees for information, data, documents, samples, petroleum facilities, and other assets already installed and invested for petroleum activities.

Article 41. Acceptance of Oil Fields, Field Clusters, and Petroleum Blocks from Contractors Upon Expiry of Petroleum Contracts

1. At least two years before the expiry of the petroleum contract, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade on the subsequent handling plan for oil fields, field clusters, and petroleum blocks being exploited within the contract area.

2. At least six months before the expiry date of the petroleum contract without signing a new petroleum contract as stipulated in Article 40 of this Law, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for review and submit to the Prime Minister for approval of the subsequent handling plan for oil fields, field clusters, and petroleum blocks according to one of the following options:

a) Cease exploitation of oil fields, field clusters, and petroleum blocks;

b) Continue exploitation of oil fields, field clusters, and petroleum blocks based on a new petroleum contract under economically and technically feasible conditions. In this case, the contractor signing the new petroleum contract may use information, data, documents, samples, petroleum facilities, and other assets already installed and invested in the same contract area in accordance with Clause 3, Article 40 of this Law;

c) Transfer exploitation of oil fields, field clusters, and petroleum blocks to the Vietnam Oil and Gas Group.

3. In cases where exploitation of oil fields, field clusters, and petroleum blocks continues as stipulated in point b, Clause 2 of this Article, at the time the petroleum contract expires, the Vietnam Oil and Gas Group shall accept the oil fields, field clusters, and petroleum blocks in their original condition from the contractor and manage petroleum activities according to the financial mechanism in the approved handling plan until a new petroleum contract is signed but not exceeding two years. If there is no interested contractor or a new contract cannot be signed within two years from the date of accepting the oil fields, field clusters, and petroleum blocks, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for review and submit to the Prime Minister for approval of the subsequent handling plan for oil fields, field clusters, and petroleum blocks according to one of the following options:

a) Cease exploitation of oil fields, field clusters, and petroleum blocks;

b) Transfer exploitation of oil fields, field clusters, and petroleum blocks to the Vietnam Oil and Gas Group.

4. The Government shall stipulate the dossier, procedures, and processes for submitting, reviewing, and approving the subsequent handling plan for oil fields, field clusters, and petroleum blocks, the content of the handling plan; financial mechanisms until signing a new petroleum contract.

Chapter V

OIL AND GAS ACTIVITIES

Article 42. Oil and gas field development projects on land; oil and gas field development projects with a chain of integrated facilities and equipment on land and at sea

1. During the process of drafting the general plan for developing an oil and gas field, if it is deemed necessary to construct a chain of integrated facilities and equipment on land and at sea outside the initial contract area to serve the extraction, processing, and transportation of oil and gas for commercial production in order to enhance the economic efficiency of the oil and gas field development project, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for review and submit to the Prime Minister for approval of the policy to implement the oil and gas field development project with a chain of integrated facilities and equipment on land and at sea. 2. The change of purpose for forest and land use (if applicable) for oil and gas field development projects on land, and oil and gas field development projects with a chain of integrated facilities and equipment on land and at sea shall be carried out as follows:

a) The National Assembly decides the policy to change the purpose of forest and land use for oil and gas field development projects on land before the general plan for developing the oil and gas field is approved according to Clause 1 of Article 46 of this Law, and for oil and gas field development projects with a chain of integrated facilities and equipment on land and at sea before the Prime Minister approves the policy to implement the project according to Clause 1 of this Article in cases where the project requires changing the purpose of using national park land, nature conservation areas, scenic protection zones, scientific research and experimental forests, special-purpose forests, upstream protective forests, border protective forests from 50 hectares or more; irrigated rice fields for two or more crops with a scale of 500 hectares or more; windbreak, sand-fixing, wave-blocking, and coastal-reclamation forests from 500 hectares or more; production forests from 1,000 hectares or more;

b) Except for the cases stipulated in point a of this clause, for oil and gas field development projects on land, the Prime Minister decides the policy to change the purpose of forest and land use before the general plan for developing the oil and gas field is approved according to Clause 1 of Article 46 of this Law; for oil and gas field development projects with a chain of integrated facilities and equipment on land and at sea, the Prime Minister decides the policy to change the purpose of forest and land use together with approving the implementation of the project according to Clause 1 of this Article; c) After receiving the decision of the competent authority regarding the policy to change the purpose of forest and land use and the approval of the general plan for developing the oil and gas field, the People's Committee of the province decides the policy to change the purpose of forest and land use for the project to implement the development of the oil and gas field.

3. The Government shall specify the dossier, procedures, and formalities for implementing Clause 1, point b, and point c of Clause 2 of this Article, and the dossier for submitting to the National Assembly as stipulated in point a of Clause 2 of this Article. Article 43. Establishment and Approval of Annual Activity Programs and Operating Budgets

1. Based on commitments in the oil and gas contract and approved programs and plans (if any), the contractor shall establish an annual activity program and operating budget to be submitted to the Vietnam Oil and Gas Group for approval.

2. The main contents of the annual activity program and operating budget include:

a) Work content;

b) Cost estimate;

c) Human resource utilization plan.

a) Content of work;

b) Cost estimate;

c) Human resource utilization plan.

Article 44. Establishment, Review, and Approval of Oil and Gas Exploration Programs

1. During the oil and gas exploration phase, based on the provisions of the oil and gas contract, the contractor shall establish an oil and gas exploration program to be reviewed and approved by the Vietnam Oil and Gas Group.

2. The main contents of the oil and gas exploration program include:

a) An overview of the oil and gas contract;

b) History of exploration, appraisal, development, and production of oil and gas (if applicable);

c) Geological, geophysical data, drilling data, survey data, and other research materials;

d) Geological characteristics, oil and gas system, resource assessment;

đ) Implementation schedule, workload, cost estimate;

e) Safety and environmental protection plan including safety measures, accident handling, preventive and pollution control solutions;

g) Expected results, risk assessment for oil and gas exploration;

h) CONCLUSIONS AND RECOMMENDATIONS.

3. The review content of the oil and gas exploration program includes:

a) Evaluation of the suitability of geological, geophysical data, drilling data, survey data, and other research materials;

b) Assessment of the rationality of data on geological characteristics, oil and gas systems, resource assessment;

c) Assessment of the feasibility and rationality of the implementation schedule, workload, and cost estimate;

d) Assessment of compliance with safety and environmental protection requirements;

đ) Assessment of achieved results and exploration risks;

4. In case there are changes to the main contents of the oil and gas exploration program as stipulated in Clause 2 of this Article, the contractor shall propose adjustments to the program, submit it to the Vietnam Oil and Gas Group for review and approval.

5. During the development and production phases of oil fields, the contractor may propose additional exploration activities and establish an additional exploration program, which must be submitted to the Vietnam Oil and Gas Group for review and approval according to the provisions of Clauses 2 and 3 of this Article.

Article 45. Establishment, Review, and Approval of Resource and Reserves Reports for Oil and Gas

1. Based on the results of exploration and appraisal of oil and gas, if commercial quantities of oil and gas are discovered within the area of the oil and gas contract, the contractor shall prepare a resource and reserves report to be reported to the Vietnam Oil and Gas Group for review and approval by the Ministry of Industry and Trade.

2. The main contents of the resource and reserves report include:

a) History of exploration, appraisal, development, and production of oil and gas;

b) Seismic survey data and other geophysical exploration methods; drilling data; other survey and research data;

c) Regional geology, field geology;

d) Reservoir parameters including geological formations of hydrocarbon reservoirs, wellbore geophysics, reservoir technology, production results, oil, gas, water injection (if applicable);

đ) Initial in-place oil and gas calculation, reserves of discovered oil and gas fields;

e) Conclusions and recommendations.

3. The review content of the resource and reserves report includes:

a) Evaluation of the implementation of exploration and appraisal work;

b) Rationality of geological conditions, reservoir geological models, reservoir parameters, and reservoir technology;

c) Rationality and reliability of initial in-place oil and gas calculations and reserves.

4. The Vietnam Oil and Gas Group is responsible for monitoring and compiling resources and reserves of oil and gas fields on Vietnamese territory and updating annually information on resources and reserves to report to the Ministry of Industry and Trade.

5. The contractor is responsible for updating the resource and reserves report for each field within three years from the date of the first commercial oil and gas production and thereafter updating periodically every five years. In cases where the initial in-place oil and gas quantity changes by more than 15% compared to the most recent approval, the contractor shall prepare an updated resource and reserves report to be submitted to the Vietnam Oil and Gas Group for review and approval by the Ministry of Industry and Trade according to the provisions of this Article.

6. The Government shall specify the documentation, procedures, and processes for submitting, reviewing, and approving resource and reserves reports.

Article 46. Establishment, Review, and Approval of the General Plan for Oil and Gas Field Development

1. After the resource report and oil and gas reserve report have been approved, the contractor shall implement the development phase of the oil and gas field and prepare the general plan for oil and gas field development to be submitted to Vietnam Oil and Gas Group for reporting to the Ministry of Industry and Trade for review and approval.

2. The main contents of the general plan for oil and gas field development include:

a) History of exploration, appraisal, and evaluation of oil and gas, geological model of the field, and appraisal plan for the next phase;

b) Field technology and initial recovery factor of oil and gas; proposed development scenarios and selected options;

c) Forecast of production volume and management operation of the field;

d) Preliminary design according to selected development options and initial determination of investment costs;

đ) Drilling technology, drilling plan, and well completion;

e) Implementation plan for safety work and environmental protection;

g) Economic and technical assessment and selection of appropriate development option at the time of report preparation;

h) Main parameters and criteria of the selected option serving as the basis for preparing the overall technical design;

i) Initial gas consumption plan;

k) Assessment of technological risk level, price fluctuation, and financial status of the project;

l) Project implementation schedule;

m) For onshore oil and gas field development projects, projects with integrated facilities and equipment on land and at sea, in addition to the contents specified in points a, b, c, d, đ, e, g, h, i, k, and l of this clause, there must also include the following main contents in accordance with construction laws: preliminary land use requirements; resource utilization needs; suitability of the project with relevant strategies and plans; economic and social impact assessment, ensuring national defense and security of the project;

n) Conclusions and recommendations.

3. The main contents of the review of the general plan for oil and gas field development include:

a) Evaluation of the suitability of field technology, production forecast, and initial recovery factor of oil and gas;

b) Evaluation of the suitability of proposed development scenarios and selected options regarding drilling technology, production technology; main parameters and criteria of the selected option serving as the basis for preparing the overall technical design;

c) Evaluation of compliance with safety and environmental protection requirements;

d) Reasonableness in preliminary economic and technical effectiveness assessment; technological risk level, product price fluctuation, and financial status of the project;

đ) Evaluation of compliance with relevant plans;

e) Content review in accordance with construction laws for the content specified in point m of Clause 2 of this Article.

4. The establishment, review, and approval of the general plan for oil and gas field development replace the preparation, review, and approval of the feasibility study report for investment construction of the oil and gas project as stipulated by the Construction Law.

5. When changing the selected development option, land use requirement (if any), and gas consumption plan in the general plan for oil and gas field development that has already been approved, the contractor shall submit to Vietnam Oil and Gas Group for reporting to the Ministry of Industry and Trade for examination and approval of the adjustment of the general plan for oil and gas field development. Adjustments to other contents of the general plan for oil and gas field development shall be examined and approved by Vietnam Oil and Gas Group.

6. The Government shall specify the dossier, procedures, and processes for submitting, reviewing, and approving the general plan for oil and gas field development.

Article 47. Establishment, Review, and Approval of Early Oil and Gas Field Development Plans

1. After the general development plan for the oil and gas field has been approved, in cases where additional research and information collection are necessary to minimize future risks, the contractor may establish an early oil and gas field development plan to be reported to Vietnam Oil and Gas Group for review and approval by the Ministry of Industry and Trade.

2. The main contents of the report on the early oil and gas field development plan include:

a) Results of geological feature studies of the field;

b) Data and analyses of reservoir fluid properties and characteristics, reservoir simulation models, production technology and design, forecasts of oil and gas production volumes, recovery factors;

c) Information on production technology and feasibility studies;

d) Drilling and well completion technology;

đ) Description of the production facilities and equipment systems used;

e) Technical design explanation report;

g) Plans for resource protection, environmental, ecological protection including safety and accident handling, preventive measures against pollution risks, and oil and gas facility dismantling;

h) Calculation of total investment and economic efficiency of the early oil and gas field development project;

i) Assessment of technological risk levels, crude oil price volatility, and financial risk of the project;

k) Implementation schedule;

l) Estimated cost of oil and gas facility dismantling;

m) Framework agreement for gas sales for the gas development project;

n) For land-based oil and gas field development projects with integrated onshore and offshore facilities and equipment, in addition to the contents specified in points a, b, c, d, đ, e, g, h, i, k, l, and m of this clause, the following main contents must be included according to construction law regulations: current land use status, land recovery conditions, land use requirements; construction location; technical infrastructure connection plans within and outside the facility; construction solutions and primary materials used; socio-economic impact assessment, ensuring national defense and security of the project;

o) Conclusions and recommendations.

3. The main contents of the review of the early oil and gas field development plan include:

a) Evaluation of compatibility with the selected scheme in the general development plan for the oil and gas field;

b) Evaluation of compatibility of geological features, reservoir fluid properties and characteristics, reservoir simulation models, production design, oil and gas production volumes, recovery factors;

c) Evaluation of compatibility of drilling technology, production technology, facility and equipment systems;

d) Reasonableness evaluation of economic efficiency assessment; technological risk level, product price fluctuation, and financial risk of the project; implementation schedule;

đ) Evaluation of compatibility of design solutions and standards applied in the overall technical design;

e) Evaluation of compliance with safety and environmental protection requirements;

g) Construction law provisions for reviewing the contents specified in point n of Clause 2 of this Article.

4. The establishment, review, and approval of the early oil and gas field development plan replaces the preparation, review, and approval of the feasibility study report for the construction investment project according to the Construction Law.

5. The contractor shall submit to Vietnam Oil and Gas Group for consideration and approval of adjustments to the early oil and gas field development plan in cases where the adjustment leads to an increase in total investment of less than 10% for the following contents:

a) Adjustment of the number and size of intra-field pipelines, adjustment of equipment capacity to enhance project efficiency and increase oil recovery factor;

b) Optimization of well locations, sequence, and number to increase production volume, reserves, or optimize investment;

c) Application of supplementary technical solutions, opening of new reservoirs discovered during development drilling to increase production volume and improve project efficiency;

d) Test production to enhance oil recovery factor;

đ) Additional drilling of closely spaced wells.

6. In other cases not specified in Clause 5 of this Article, the contractor shall submit to Vietnam Oil and Gas Group for consideration and report to the Ministry of Industry and Trade for review and approval of adjustments to the early oil and gas field development plan.

7. After completing the early oil and gas field development plan, the contractor shall submit to Vietnam Oil and Gas Group for consideration and report to the Ministry of Industry and Trade on the implementation results of the early development plan and update the production model along with data and analysis proving the applicability of the test layout for full-field development.

8. The Government shall stipulate the conditions for establishing an early oil and gas field development plan and the dossier, procedures, and processes for submitting, reviewing, and approving the early oil and gas field development plan.

Article 48. Establishment, Review, and Approval of Oil and Gas Field Development Plans

1. After the general plan for oil and gas field development has been approved or before the expiration of the implementation period of the early oil and gas field exploitation plan, the contractor shall establish the oil and gas field development plan to be submitted to the Vietnam Oil and Gas Group for reporting to the Ministry of Industry and Trade for review and approval.

2. The main contents of the report on the oil and gas field development plan include:

a) Results of the implementation of the early oil and gas field exploitation plan (if applicable);

b) Results of geological characteristics research of the oil and gas field;

c) Data and analyses of the composition, properties of reservoir fluids and formations, studies on reservoir simulation models, field technology and production design, forecasts of oil and gas production volumes, recovery factors;

d) Information on production technology and feasibility studies;

đ) Drilling technology and well completion;

e) Description of the production facilities and equipment systems used;

g) Technical design overview report;

h) Plans for resource protection, environmental, ecological protection including safety and accident handling, preventive measures against pollution risks and decommissioning of oil and gas facilities;

i) Calculation of total investment and economic efficiency of the project;

k) Assessment of technological and financial risks of the project;

l) Progress schedule;

m) Statistics of technical principles and regulations applied during drilling and production;

n) Framework agreement for natural gas sales for gas exploitation projects;

o) Estimated costs for decommissioning of oil and gas facilities;

p) For land-based oil and gas field development projects with integrated facilities and equipment on land and at sea, in addition to the contents specified in points a, b, c, d, đ, e, g, h, i, k, l, m, n, and o of this Clause, the following main contents must be included according to construction laws: current land use information, land recovery conditions, land usage requirements; construction location; infrastructure connection plans within and outside the facility; construction solutions and primary materials used; socio-economic impact assessment, ensuring national defense and security of the project;

q) Conclusions and recommendations.

3. The contents of the review of the oil and gas field development plan include:

a) Evaluation of compatibility with the selected scheme in the general development plan for the oil and gas field;

b) Evaluation of compatibility of geological features, reservoir fluid properties and characteristics, reservoir simulation models, production design, oil and gas production volumes, recovery factors;

c) Evaluation of compatibility of drilling technology, production technology, facility and equipment systems;

d) Reasonableness evaluation of economic efficiency assessment; technological risk level, product price fluctuation, and financial risk of the project; implementation schedule;

đ) Evaluation of compatibility of design solutions and standards applied in the overall technical design;

e) Evaluation of compliance with safety and environmental protection requirements;

g) The review contents according to construction laws for the contents specified in point p of Clause 2 of this Article.

4. The establishment, review, and approval of the oil and gas field development plan replace the establishment, review, and approval of the feasibility study report for investment construction of oil and gas projects as stipulated in the Construction Law.

5. The contractor shall submit to the Vietnam Oil and Gas Group for consideration and approval of adjustments to the oil and gas field development plan in cases where the adjustment leads to an additional total investment increase of less than 10% for the following contents:

a) Adjustment of the number and size of intra-field pipelines, adjustment of equipment capacity to enhance project efficiency or increase oil and gas recovery factor;

b) Optimization of well locations, sequence, and number to increase production volume, reserves, or optimize investment;

c) Application of supplementary technical solutions, opening of new reservoirs discovered during development drilling to increase production volume and improve project efficiency;

d) Test production to enhance oil recovery factor;

đ) Additional drilling of closely spaced wells.

6. The contractor shall submit to the Vietnam Oil and Gas Group for consideration and report to the Ministry of Industry and Trade for review and approval of adjustments to the oil and gas field development plan in other cases not provided for in Clause 5 of this Article.

7. The Government shall specify the dossier, procedures, and processes for submission, review, and approval of the oil and gas field development plan.

Article 49. Burning and Discharging Gas

1. The contractor shall be responsible for collecting gas after its use within the mine (if any) during oil and gas exploitation activities and must develop a plan to collect gas in the early development plan of the oil and gas field or the oil and gas field development plan.

2. The contractor may burn and discharge gas in the following cases:

a) During the process of testing the seam to clean and maintain the well; completing, repairing, or treating the well and to relieve well pressure;

b) In emergency situations to ensure safety for people, property, and oil and gas operations, or when the gas processing and transportation system temporarily ceases operation due to an incident;

c) According to the annual burning and discharging gas plan related to operational safety, regular maintenance of the oil and gas field approved by Vietnam Oil and Gas Group.

Article 50. Preparing, Reviewing, and Approving the Plan for Clearing Oil and Gas Facilities

1. During the course of conducting oil and gas activities, after the completion of each phase or the termination of the oil and gas contract, the contractor must clear oil and gas facilities that are no longer in use or cannot continue to serve oil and gas activities due to severe damage or being unsuitable with technology affecting the safety and efficiency of such activities.

2. Within one year from the date of the first commercial extraction of oil and gas from the contract area, the contractor must prepare a plan for clearing oil and gas facilities to report to Vietnam Oil and Gas Group for review and approval by the Ministry of Industry and Trade.

3. At least one year before the end of the oil and gas contract or the end of the oil and gas field exploitation period, the contractor must update the plan for clearing oil and gas facilities to report to Vietnam Oil and Gas Group for review and approval by the Ministry of Industry and Trade.

4. The main contents of the plan for clearing oil and gas facilities include:

a) List and description of equipment, device assemblies, and structures of oil and gas facilities to be cleared;

b) Solutions and technical plans for implementing the clearance of oil and gas facilities;

c) Waste management plan, marine environmental pollution control plan, environmental monitoring plan, environmental accident prevention and response plan, safety assurance plan during the clearance of oil and gas facilities;

d) Estimated clearance costs, plan and schedule for establishing a fund to fulfill the obligation of clearing oil and gas facilities;

đ) Schedule for implementing the clearance work of oil and gas facilities.

5. The contents of reviewing the plan for clearing oil and gas facilities include:

a) Evaluation of the suitability of the list of equipment, device assemblies, and structures of oil and gas facilities to be cleared;

b) Evaluation of the suitability of solutions and technical plans for implementing the clearance of oil and gas facilities;

c) Evaluation of the suitability of waste management plans, marine environmental pollution control, environmental monitoring, environmental accident prevention and response, safety assurance;

d) Evaluation of the appropriateness and rationality in estimated clearance costs, plan and schedule for establishing a fund to fulfill the obligation of clearing oil and gas facilities, implementation schedule.

6. The contractor shall submit to Vietnam Oil and Gas Group for consideration and approval of adjustments to the plan for clearing oil and gas facilities in cases where additional or expanded facility items, equipment, wells lead to an increase in the budgeted cost in the most recently approved plan for clearing oil and gas facilities by less than 20%.

7. During the implementation of the oil and gas development and exploitation project, if it is found that the oil and gas facilities suffer from incidents that cannot be repaired or maintained or do not ensure safety to continue operations, the contractor shall submit to Vietnam Oil and Gas Group for consideration and approval of the clearance plan.

8. The contractor shall submit to Vietnam Oil and Gas Group for reporting to the Ministry of Industry and Trade for review and approval of adjustments to the plan for clearing oil and gas facilities in the following cases:

a) Additional or expanded facility items, equipment, wells or changes in technological requirements, techniques, service price inflation leading to an increase in the budgeted cost in the most recently approved plan for clearing oil and gas facilities by 20% or more;

b) Partial clearance of oil and gas facilities must be carried out in cases not specified in the previously approved plan for clearing oil and gas facilities or delayed clearance or leaving oil and gas facilities behind.

9. The Government shall stipulate the documentation, procedures, and processes for submitting, reviewing, and approving the plan for clearing oil and gas facilities.

Article 51. Petroleum Decommissioning Obligation Guarantee Fund

1. Financial guarantee for the obligation to decommission petroleum facilities shall be implemented through the establishment of a fund.

2. Within one year from the date of the first commercial production of oil or gas from the area covered by the petroleum contract, the contractor must establish a fund to guarantee the obligation to decommission petroleum facilities. The fund to guarantee the obligation to decommission petroleum facilities shall be annually contributed based on the approved decommissioning plan of petroleum facilities and submitted to the Vietnam Oil and Gas Group. The level of contribution to the fund by each contractor corresponds to the proportion of the contractor's interest in the petroleum contract and is included in the cost recovery of the petroleum contract.

3. Before terminating the petroleum contract or ending the exploitation phase of the oil field, the contractor must complete contributions to the fund guaranteeing the obligation to decommission petroleum facilities.

4. Management of the fund guaranteeing the obligation to decommission petroleum facilities shall be carried out by the Vietnam Oil and Gas Group in accordance with the provisions of the law and to meet the requirements for decommissioning petroleum facilities according to the approved decommissioning plan of petroleum facilities. During the period when the fund guaranteeing the obligation to decommission petroleum facilities is not used, the Vietnam Oil and Gas Group deposits the fund amount into a commercial bank held by the State with controlling shares; annual interest generated after fulfilling related financial obligations under the law shall be credited to the fund guaranteeing the obligation to decommission petroleum facilities.

5. In case the balance of the fund guaranteeing the obligation to decommission petroleum facilities does not meet the necessary requirements for decommissioning petroleum facilities, the contractor must contribute additional funds to ensure completion of the decommissioning obligation. If the balance of the fund guaranteeing the obligation to decommission petroleum facilities exceeds the necessary requirements for decommissioning petroleum facilities, the excess amount after completing the decommissioning obligation shall be refunded to the parties involved in the petroleum contract in accordance with the provisions of the petroleum contract.

6. The Government shall provide detailed regulations on the establishment, management, and use of the fund guaranteeing the obligation to decommission petroleum facilities.

Article 52. Implementation of Petroleum Facility Decommissioning

1. The contractor has the obligation to implement the decommissioning of petroleum facilities according to the approved decommissioning plan of petroleum facilities. The decommissioning of petroleum facilities must comply with safety and environmental protection requirements as stipulated by law.

2. The contractor shall submit to the Vietnam Oil and Gas Group for approval by the Ministry of Industry and Trade the report on leaving behind part or all of the petroleum facilities; postponing the decommissioning of part or all of the petroleum facilities.

3. The contractor must immediately carry out partial or full decommissioning of severely damaged petroleum facilities; petroleum facilities that have seriously deteriorated and cannot be repaired or remedied, affecting the safety of petroleum operations.

4. During the petroleum exploitation process, the contractor may proceed with partial or certain items, equipment decommissioning, and abandonment of wells within the approved decommissioning plan of petroleum facilities that are no longer functional to reduce operational and maintenance costs in accordance with Clause 7, Article 50 of this Law.

5. The Government shall specify the documentation, procedures, and processes for submitting, reviewing, and approving the retention, postponement, or partial or full decommissioning of petroleum facilities.

Chapter VI

PETROLEUM ACTIVITY INCENTIVES AND POLICIES FOR THE EXPLOITATION OF RESOURCES IN COMPLETELY DEPLETED OIL AND GAS FIELDS, FIELD GROUPS, OR BLOCKS

Article 53. Eligible Recipients for Investment Incentives

1. Oil and gas blocks and fields shall be eligible to receive investment incentives if they meet one of the following criteria:

a) The oil and gas block is located in deep waters, far offshore, or in areas with particularly difficult geographical conditions and complex geology;

b) A regular oil and gas block has been tendered according to the economic and technical terms of the oil and gas contract but no contractor or investor has proposed to participate;

c) The oil and gas block is formed from the area returned under the oil and gas contract applicable to a regular oil and gas block;

d) A regular oil and gas block that the contractor returns before the expiration of the oil and gas contract term;

đ) The oil and gas block is formed from the consolidation of the area returned and the oil and gas block that the contractor returns as stipulated in points c and d of this clause;

e) Border oil and gas fields belonging to regular oil and gas blocks that have signed oil and gas contracts;

g) At the end of the oil and gas contract period, oil and gas fields can continue to maintain exploitation activities but do not achieve the minimum investment efficiency when applying the economic and technical terms of the regular oil and gas contract already signed;

h) New oil and gas objects that have not yet been explored or discovered in sedimentary basins;

2. Oil and gas blocks and fields shall be eligible to receive special investment incentives if they meet one of the following criteria:

a) An oil and gas block has been tendered according to the conditions for oil and gas blocks eligible for investment incentives but no contractor or investor has proposed to participate;

b) The oil and gas block is formed from the area returned under the oil and gas contract applicable to oil and gas blocks eligible for investment incentives;

c) An oil and gas block eligible for investment incentives that the contractor returns before the expiration of the oil and gas contract term;

d) The oil and gas block is formed from the area returned and the oil and gas block that the contractor returns as stipulated in points b and c of this clause;

đ) Border oil and gas fields belonging to oil and gas blocks eligible for investment incentives that have signed oil and gas contracts;

e) At the end of the oil and gas contract eligible for investment incentives, oil and gas fields can continue to maintain exploitation activities but do not achieve the minimum investment efficiency when applying the economic and technical terms of the oil and gas contract eligible for investment incentives;

g) An oil and gas block with unconventional oil and gas as its object;

3.The Prime Minister shall issue a list of oil and gas blocks and fields eligible for investment incentives and special investment incentives.

4. The Government shall provide detailed regulations on this matter.

Article 54. Investment Incentive Policies

1. Investment incentive policies shall be implemented for oil and gas blocks and fields through oil and gas contracts.

2. Oil and gas contracts for oil and gas blocks and fields eligible for investment incentives shall apply a corporate income tax rate of 32%, an export duty on crude oil of 10%, and a maximum cost recovery rate of 70% of the annual oil and gas production volume.

3. Oil and gas contracts for oil and gas blocks and fields eligible for special investment incentives shall apply a corporate income tax rate of 25%, an export duty on crude oil of 5%, and a maximum cost recovery rate of 80% of the annual oil and gas production volume.

Article 55. Resource Exploitation Policy for Depleted Oil and Gas Fields, Blocks, and Clusters

1. The resource exploitation policy for depleted oil and gas fields, blocks, and clusters as provided for in point c, Clause 2, and point b, Clause 3, Article 41 of this Law shall be implemented as follows:

a) The difference between revenue and actual costs incurred in exploiting resources for depleted oil and gas fields, blocks, and clusters shall be paid into the state budget on the principle of ensuring the effectiveness of the exploitation of remaining resources and strict control over oil and gas activity costs;

b) Information, data, documents, samples, oil and gas facilities, and other assets already installed and invested in under expired oil and gas contracts may be used to carry out exploitation activities without payment;

c) Additional investments for exploiting resources for depleted oil and gas fields, blocks, and clusters, dismantling oil and gas facilities, and post-dismantling treatment at the end of exploitation activities shall be carried out in accordance with this Law and based on balancing revenues from the exploitation of remaining resources for oil and gas fields, blocks, and clusters.

2. The Government shall provide detailed regulations for this Article.

Chapter VII

ACCOUNTING, AUDITING, AND SETTLEMENT WORK FOR OIL AND GAS ACTIVITIES

Article 56. Accounting and auditing work for oil and gas activities under oil and gas contracts

1. Accounting and auditing work for oil and gas activities under oil and gas contracts shall be carried out in accordance with the provisions of Vietnamese laws on accounting and auditing and in conformity with international oil and gas industry practices.

2. Corporate income tax for oil and gas activities shall be determined based on the oil and gas contract according to the provisions of this Law and the Law on Corporate Income Tax, regardless of the business results (losses or profits) of enterprises participating in the oil and gas contract.

3. In cases where a petroleum block contains marginal fields belonging to other petroleum blocks that have signed oil and gas contracts as stipulated in point e, Clause 1 and point đ, Clause 2, Article 53 of this Law, accounting, auditing, declaration, and payment of taxes shall be conducted on a field-by-field basis and in accordance with the oil and gas contract.

Article 57. Settlement of costs for oil and gas activities under oil and gas contracts

1. The settlement of costs for oil and gas activities under oil and gas contracts shall be carried out by the contractor after completing each item, sub-item, and phase of the oil and gas contract or upon completion of the oil and gas project or component projects of the oil and gas project.

2. The implementation of cost settlement ensures that the settled costs reflect truthfully, fully, reasonably, and legally in accordance with Vietnamese laws.

3. The Government shall provide detailed regulations on this Article.

Chapter VIII

RIGHTS AND OBLIGATIONS OF THE CONTRACTOR

Article 58. Rights of the Contractor

1. The Contractor has the following rights:

a) Enjoy incentives and investment guarantees as provided for by Vietnamese laws;

b) Use samples, information, and data obtained to conduct oil and gas activities;

c) Hire workers prioritizing Vietnamese laborers;

d) Engage organizations and individuals to provide oil and gas services and goods serving oil and gas activities in accordance with this Law and in conformity with international oil and gas industry practices;

đ) Be exempt from import duties and export duties to serve oil and gas activities in accordance with the Law on Export Duties and Import Duties;

e) Own the portion of oil and gas products and other products extracted according to the oil and gas contract after fulfilling financial obligations as prescribed by law; permitted to sell these products collectively at different times and points of sale without being considered a violation of competition laws;

g) Export or sell in the Vietnamese market the portion of products owned as agreed in the oil and gas contract, except when the contractor must sell in the Vietnamese market according to the provisions of Clause 8, Article 59 of this Law. The contractor does not need to apply for an export permit when exporting the portion of products owned;

h) Recover oil and gas activity costs as agreed in the oil and gas contract;

i) Access and use transportation systems, infrastructure, and oil and gas facilities as prescribed by law; access and use existing infrastructure and oil and gas facilities to serve oil and gas activities through contracts or agreements with the owners or operators of such infrastructure and facilities, ensuring the interests of all parties in compliance with the law;

k) Purchase foreign currency from commercial banks to participate in oil and gas contracts and fulfill state budget payment obligations;

l) Other rights as prescribed by this Law.

2. In addition to the rights stipulated in Clause 1 of this Article, foreign organizations and individuals acting as contractors shall have the following rights:

a) Open accounts in Vietnam and abroad in accordance with laws on foreign exchange management;

b) Transfer legitimate income derived from oil and gas activities according to the oil and gas contract abroad in accordance with laws on foreign exchange management and other relevant laws after fulfilling financial obligations as prescribed by law;

c) Purchase foreign currency from commercial banks to carry out current transactions and other permitted transactions in accordance with laws on foreign exchange management.

Article 59. Obligations of the Contractor

1. Fulfill the commitments under the oil and gas contract.

2. Pay all types of taxes, fees, and charges as prescribed by Vietnamese law.

3. Transfer technology; train and employ Vietnamese workers and ensure their legitimate and reasonable rights and interests.

4. Comply with laws on national defense and security; implement measures to protect the environment and ensure safety in oil and gas activities; comply with regulations and guidelines issued by state management agencies regarding cost standards, economic and technical norms.

5. Report on oil and gas activities to competent state management authorities, Vietnam Oil and Gas Group, and report to the competent tax authority in accordance with tax laws when transactions occur that change the ownership of the contractor holding participating interests in the oil and gas contract in Vietnam.

6. Provide necessary documents to inspection and audit teams upon request.

7. Remove oil and gas facilities, equipment, and means of transportation after the completion of oil and gas operations as prescribed by law.

8. Sell on the Vietnamese market at the request of the Government for the following products:

a) The portion of natural gas owned by the contractor based on agreements in gas development projects.

b) The portion of crude oil owned by the contractor at international competitive prices.

9. Deposit capital contributions into a common account opened in Vietnam by the operator or the operator's office to cover expenses serving oil and gas activities as stipulated in the oil and gas contract.

10. Share the use of existing infrastructure and oil and gas facilities with third parties based on contracts or agreements between the parties without affecting oil and gas activities, in compliance with Vietnamese law and international oil industry practices.

11. Facilitate organizations and individuals conducting scientific research, exploration, and exploitation of minerals other than oil and gas within the area covered by the oil and gas contract in accordance with Vietnamese law on the principle of not hindering oil and gas activities and causing no harm to people, property, or the environment.

12. Organize the selection of contractors providing oil and gas services and goods serving oil and gas activities based on ensuring principles of competition, fairness, transparency, efficiency, and compliance with the oil and gas contract; report to Vietnam Oil and Gas Group on the organization of the selection of contractors providing oil and gas services and goods.

13. Other obligations as prescribed by this Law and related laws.

Chapter IX

FUNCTIONS, RIGHTS AND OBLIGATIONS OF VIETNAM OIL AND GAS GROUP IN BASIC SURVEYING AND OIL AND GAS ACTIVITIES

Article 60. Functions of Vietnam Oil and Gas Group in basic surveying and oil and gas activities

1. Conduct basic surveys on oil and gas, carry out oil and gas activities as the contractor signing the oil and gas contract as prescribed by this Law. Vietnam Oil and Gas Group's participation together with enterprises with its capital contribution in oil and gas contracts as stipulated in Article 39 of this Law shall not be considered a violation of laws on the management and use of state capital invested in production and business at enterprises.

2. After the basic survey project on oil and gas is approved, sign and implement agreements on basic surveys on oil and gas with organizations outside state agencies and state-owned enterprises leading the basic survey project on oil and gas.

3. After the oil and gas contract is approved, sign and manage the oil and gas contract with organizations and individuals carrying out oil and gas activities; exercise the right to participate and the right of first refusal to purchase part or all of the contractor's interests in the oil and gas contract including special cases.

4. Take over, manage, and operate oil fields, field clusters, and oil blocks from the contractor when the oil and gas contract expires to select a new contractor to sign a new oil and gas contract.

5. Exploit according to the policy on the exploitation of resources for oil fields, field clusters, and oil blocks being depleted.

6. To perform the functions prescribed in Clauses 2, 3, 4, and 5 of this Article, Vietnam Oil and Gas Group has the rights and obligations prescribed in Articles 61 and 62 of this Law.

Article 61. Rights of the Vietnam Oil and Gas Group

1. Enter into agreements with organizations outside state agencies for the implementation of basic oil and gas investigation projects led by state-owned enterprises; manage and supervise the implementation of agreements related to the exploitation of information, data, and results of basic oil and gas investigations in accordance with this Law and other relevant laws.

2. Enter into oil and gas contracts with organizations and individuals to conduct oil and gas activities in accordance with this Law and other relevant laws.

3. Manage and supervise the implementation of oil and gas contracts; approve annual activity programs and activity budgets; audit costs incurred in implementing oil and gas activities in accordance with the provisions of the oil and gas contract; approve final cost settlements under the oil and gas contract.

4. Approve oil and gas exploration programs, adjusted oil and gas exploration programs, supplementary oil and gas exploration programs in accordance with Article 44 of this Law.

5. Approve adjustments to general development plans for fields, early production plans for oil and gas fields, field development plans, and decommissioning plans for oil and gas facilities as stipulated in Clause 5 of Article 46, Clause 5 of Article 47, Clause 5 of Article 48, and Clause 6 of Article 50 of this Law; approve decommissioning plans as stipulated in Clause 7 of Article 50 of this Law.

6. Supervise design and construction work for oil and gas facilities in accordance with the provisions of the oil and gas contract.

7. Organize the sale of the host country's share of products together with the Vietnam Oil and Gas Group's share as the operating contractor under the oil and gas contract, permitted to sell these products jointly with other contractors in the oil and gas contract in accordance with point e of Clause 1 of Article 58 of this Law.

8. Manage and operate oil and gas activities; exploit depleted fields and invest additional resources for their exploitation, and monitor and utilize assets related to the acceptance of contractors' participation rights, acceptance of fields, clusters, and blocks, and follow up on the exploitation of such resources.

Article 62. Obligations of the Vietnam Oil and Gas Group

1. Organize the effective and rational management, operation, and exploitation of oil and gas resources, protect resources and the environment, and ensure safety in oil and gas activities.

2. Organize the management, storage, preservation, and utilization of samples, documents, information, data, and results of basic oil and gas investigations conducted by organizations outside state agencies leading basic oil and gas investigations; samples, documents, information, and data obtained during the implementation of oil and gas activities and after the completion of the oil and gas contract, ensuring access rights for organizations and individuals to documents, information, data, and results of basic oil and gas investigations and oil and gas activities.

3. Manage and strictly supervise the implementation of basic oil and gas investigation agreements related to the exploitation of information, data, and results of basic oil and gas investigations in accordance with the law and agreements signed.

4. Manage and strictly supervise the implementation of oil and gas contracts effectively in accordance with the law and the oil and gas contract.

5. Report oil and gas activities to competent state management authorities periodically or upon request.

6. Propose solutions and cooperate with competent state management authorities as required in the formulation of policies, strategies, and directions related to the rational and effective organization of oil and gas resource exploitation, protection of natural resources and the environment, and sustainable development.

Article 63. Approval of the use of capital by the Vietnam Oil and Gas Group and wholly-owned enterprises of the Vietnam Oil and Gas Group in oil and gas activities

The Board of Members of the Vietnam Oil and Gas Group shall be responsible for:

1. Approving the use of capital by the Vietnam Oil and Gas Group and wholly-owned enterprises of the Vietnam Oil and Gas Group without depending on the amount of capital contribution after being approved according to the provisions of this Law in the following cases:

a) Implementing the right to participate in oil and gas contracts and the right of first refusal to purchase part or all of the participating interests specified in Article 39 of this Law;

b) Implementing oil and gas activities according to the stages of oil and gas contracts, oil and gas projects;

2. Approving the termination of unsuccessful oil and gas projects and the costs of unsuccessful oil and gas projects of the Vietnam Oil and Gas Group and wholly-owned enterprises of the Vietnam Oil and Gas Group;

3. Reporting to the State Capital Management Committee at Enterprises on the contents that have been approved according to the provisions of Clause 1 and Clause 2 of this Article for monitoring, inspection, and supervision.

Article 64. Handling of expenses of the Vietnam Oil and Gas Group

1. Basic investigation costs regarding oil and gas conducted by the Vietnam Oil and Gas Group outside the portion of funds guaranteed from the state budget (if any) shall be paid from the post-tax profit of the Vietnam Oil and Gas Group.

2. Exploration and appraisal costs of unsuccessful exploration and appraisal projects of the Vietnam Oil and Gas Group, after the decision of the Board of Members of the Vietnam Oil and Gas Group on terminating the project and settling the costs, shall be compensated from the annual post-tax profit of the Vietnam Oil and Gas Group and implemented over a period of five years from the date of the decision to terminate the project and settle the costs.

3. The expenses stipulated in Clause 1 and Clause 2 of this Article shall be handled from the post-tax profit of the Vietnam Oil and Gas Group before setting aside funds according to the regulations on managing and using state capital invested in production and business operations at enterprises.

4. The Vietnam Oil and Gas Group may use money from selling the host country's profit share of oil and gas products from oil and gas contracts before determining the profit share for the host country to pay into the state budget to settle the following costs and obligations:

a) Costs belonging to the host country's responsibility as stipulated in the oil and gas contracts that the Vietnam Oil and Gas Group implements on behalf of the host country;

b) Obligations related to the host country's profit share of oil and gas from oil and gas contracts that the Vietnam Oil and Gas Group implements on behalf of the host country;

c) Management and supervision costs of oil and gas contracts;

d) Costs to maintain oil and gas contracts in the case of taking over participating interests from contractors due to special reasons or performing tasks assigned

Chapter X

STATE MANAGEMENT AND RESPONSIBILITIES OF THE STATE CAPITAL MANAGEMENT COMMITTEE AT ENTERPRISES REGARDING BASIC INVESTIGATION ON OIL AND GAS AND OIL AND GAS ACTIVITIES

Article 65. Responsibilities for state management of basic investigation on oil and gas and oil and gas activities

1. The Government shall uniformly manage state affairs concerning basic investigation on oil and gas and oil and gas activities.

2. The Ministry of Industry and Trade shall be responsible before the Government for implementing state management of basic investigation on oil and gas and oil and gas activities and shall have the following tasks and powers:

a) Issuing by its authority or submitting to competent state agencies for issuance of normative legal documents, strategies, plans for the development of the oil and gas industry;

b) Building, issuing, and guiding standards for cost norms, economic and technical norms for basic investigation on oil and gas and oil and gas activities;

c) Compiling, tracking, and reporting on the situation of development and results of oil and gas exploration, exploitation, consumption, and export;

d) Implementing international cooperation;

đ) Guiding, disseminating, organizing implementation, tracking, inspecting, and evaluating the implementation of normative legal documents on oil and gas;

e) Inspecting, auditing, handling violations, and resolving complaints and denunciations regarding basic investigation on oil and gas and oil and gas activities within its authority;

g) Taking the lead and coordinating with ministries, ministerial-level agencies to inspect and supervise the implementation of rights and obligations of the Vietnam Oil and Gas Group as stipulated in Articles 61 and 62 of this Law;

h) Performing other state management tasks concerning basic investigation on oil and gas and oil and gas activities within its authority as prescribed by this Law.

3. Ministries, ministerial-level agencies, provincial People's Committees, within their respective functions and powers, shall be responsible for coordinating with the Ministry of Industry and Trade to implement state management of basic investigation on oil and gas and oil and gas activities.

Article 66. Responsibilities of the State Capital Management Committee at Enterprises

1. Participate in providing opinions on the use of capital of the Vietnam Oil and Gas Group when exercising rights to participate in oil and gas contracts, preferential purchase rights before participating interests in oil and gas contracts, implementing oil and gas activities according to stages of oil and gas contracts, oil and gas projects, and submit to the Ministry of Industry and Trade for consolidation during the process of reviewing contents in accordance with this Law.

2. Inspect and supervise the contribution of capital to participate in oil and gas contracts, transfer of participation interests in oil and gas contracts, implementation of oil and gas activities according to stages of oil and gas contracts, oil and gas projects of the Vietnam Oil and Gas Group.

Chapter XI

IMPLEMENTING PROVISIONS

Article 67. Amending and Supplementing Certain Provisions of the Law on Corporate Income Tax and the Law on Resource Tax

1. Amend and supplement Clause 3, Article 10 of the Law on Corporate Income Tax No. 14/2008/QH12 which has been amended and supplemented by Laws No. 32/2013/QH13, No. 71/2014/QH13, and No. 61/2020/QH14 as follows:

Replace the phrase "Corporate income tax rate for exploration, development, and exploitation of oil, gas, and other rare resources in Vietnam from 32% to 50%, appropriate to each project and business establishment." with the phrase "Corporate income tax rate for oil and gas activities from 25% to 50%, appropriate to each oil and gas contract; corporate income tax rate for exploration, development, and exploitation of other rare resources in Vietnam from 32% to 50%, appropriate to each project and business establishment."

2. Amend and supplement Clause 1, Article 3 of the Law on Resource Tax No. 45/2009/QH12 which has been amended and supplemented by Law No. 71/2014/QH13 as follows:
"1. The taxpayer of resource tax is an organization or individual exploiting resources subject to resource tax, except for cases of exploiting resources from mines, clusters of mines, oil and gas blocks exploited under the final recovery mechanism prescribed by laws on oil and gas."

Article 68. Effective Date of Implementation

1. This Law takes effect from July 1, 2023.

2. The Petroleum Law dated July 6, 1993, which has been amended and supplemented by Laws No. 19/2000/QH10, No. 10/2008/QH12, and No. 35/2018/QH14 shall cease to be effective from the date this Law takes effect.

Article 69. Transitional Provisions

1. Contractors who have signed oil and gas contracts and obtained investment registration certificates before this Law takes effect shall continue to implement the signed oil and gas contracts and issued investment registration certificates.

2. Approved plans, reports, programs, and projects of oil and gas that were approved before this Law takes effect shall continue to be implemented according to the approved contents without having to supplement the provisions of this Law.

3. Reports, plans, programs, and oil and gas contracts submitted to competent authorities before this Law takes effect shall not need to be resubmitted and shall be reviewed and approved according to the laws in force before this Law takes effect.

4. Operations of final recovery exploitation conducted under management mechanisms approved before this Law takes effect shall continue to be implemented according to the decisions already issued and the laws in force before this Law takes effect.

 

 

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the 15th termAdopted at the fourth session on November 14, 2022.