Decree No. 139/2005/NĐ-CP promulgates the Model Contract for the Allocation of Petroleum Products, applicable to petroleum projects. The parties to the contract may agree on specific contents but must comply with the Model Contract.
Scope of application
The parties to the allocation of petroleum products contract
Key points
- The allocation of petroleum products contract must comply with the Model Contract promulgated together with this Decree, except where approved by the Prime Minister not to apply.
- The parties to the contract may agree on the term of the contract (Article 2.1.1), minimum work commitment (Article 2.2.2), allocation of oil and gas to recover costs and profit (Articles 6.1.2, 6.1.3, 6.2.2, 6.2.3), commission and documentation fees (Articles 9.1, 9.2 and 9.4), training expenses (Article 10.1.1) and the participation ratio of PetroVietnam (Article 12.1.1).
- The operator may be agreed upon (Article 20.4).
- The contract must include appendices and fill in open items with appropriate data as agreed.
- This Decree takes effect fifteen days after publication in the Official Gazette.
🌐 Social impact of this document
- Positive impact: The Model Contract helps ensure fairness and transparency in the allocation of petroleum products between the contracting parties.
- Negative impact: Specific conditions of each project need to be agreed upon, which may result in time and effort costs during the negotiation process.
❓ Frequently asked questions
How must the allocation of petroleum products contract comply with the Model Contract?
The allocation of petroleum products contract must comply with the Model Contract promulgated together with this Decree, except where approved by the Prime Minister not to apply (Article 2).
What specific contents can the parties to the contract agree upon?
The parties to the contract may agree on the term of the contract, minimum work commitment, allocation of oil and gas to recover costs and profit, commission and documentation fees, training expenses and the participation ratio of PetroVietnam (Article 3).
When does this Decree take effect?
This Decree takes effect fifteen days after publication in the Official Gazette (Article 4).
In what circumstances can the Model Contract not be applied?
The Model Contract may not be applied if approved by the Prime Minister according to Clause 3, Article 1 of the Law Amending and Supplementing Certain Provisions of the Petroleum Law dated June 22, 2000 (Article 2).
How is the operator agreed upon?
The operator may be agreed upon (Article 20.4).
Full text
DECREE
Issuing the Model Contract for the Product Sharing Contract for Oil and Gas
_______________________
THE GOVERNMENT
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Petroleum Law dated July 19, 1993;
Pursuant to the Law Amending and Supplementing Certain Provisions of the Petroleum Law dated June 22, 2000;
Considering the proposal of the Minister of Industry,
DECREE:
Article 1. The Model Contract for the Product Sharing Contract for Oil and Gas (hereinafter referred to as the Model Contract) is hereby issued together with this Decree.
Article 2. The Product Sharing Contract for Oil and Gas must comply with the Model Contract issued together with this Decree. In cases where the Prime Minister approves, the parties to the contract may agree not to apply the Model Contract in accordance with Clause 3, Article 1 of the Law Amending and Supplementing Certain Provisions of the Petroleum Law dated June 22, 2000.
Article 3. Based on the specific conditions of each project, the parties to the contract may negotiate the following contents:
1. Duration of the contract (Article 2.1.1);
2. Minimum work commitment (Article 2.2.2);
3. Allocation of oil to recover costs (Article 6.1.2);
4. Allocation of profit oil (Article 6.1.3);
5. Allocation of gas to recover costs (Article 6.2.2);
6. Allocation of profit gas (Article 6.2.3);
7. Commission and documentation fees (Articles 9.1, 9.2, and 9.4);
8. Training expenses (Article 10.1.1);
9. Participation ratio of Vietnam National Oil and Gas Group (Petrovietnam) (Article 12.1.1);
10. Operator (Article 20.4);
11. Appendices to the contract and filling in open items with appropriate figures according to the agreement.
Article 4. This Decree shall take effect fifteen days after its publication in the Official Gazette.
Article 5. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities, and Vietnam National Oil and Gas Group (Petrovietnam) are responsible for implementing this Decree.
PRIME MINISTER
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