Decree No. 44/2010/ND-CP Amending and Supplementing Certain Provisions on the Financial Management Regulation of the Parent Company - Vietnam Oil and Gas Corporation issued together with Decree No. 142/2007/ND-CP dated September 5, 2007 of the Government.

DECREE

Amending and supplementing certain provisions on the Financial Management Regulation

of the Parent Company - Vietnam Oil and Gas Corporation issued together with

Decree No. 142/2007/NĐ-CP dated September 5, 2007 of the Government

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THE GOVERNMENT

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

Pursuant to the State Enterprise Law 2003;

Pursuant to the Enterprise Law 2005;

Pursuant to the Petroleum Law 2003 and the Law Amending and Supplementing Certain Provisions of the Petroleum Law 2009; the Law Amending and Supplementing Certain Provisions of the Petroleum Law 2008;

Considering the proposal of the Minister of Finance,

DECREE:

Article 1. Amending and supplementing certain provisions on the Financial Management Regulation of the Parent Company - Vietnam Oil and Gas Corporation issued together with Decree No. 142/2007/NĐ-CP dated September 5, 2007 of the Government as follows:

2. Amending and supplementing Clause 1, Clause 2, and Clause 4 of Article 6 as follows:

"The charter capital of the Parent Company at the time of January 1, 2009 was 118,000 billion VND (one hundred eighteen thousand billion VND)."

2. Amend Clause 3 of Article 5 as follows:

"The Parent Company - Vietnam Oil and Gas Corporation directly manages and accounts for the entire capital contribution of the Government of Vietnam in the Vietsovpetro Joint Venture according to Vietnamese law and the Government Agreement signed on July 16, 1991. The Parent Company is responsible for managing, using effectively, preserving, and developing the capital assigned."

3. Adding point e to Clause 3 Article 18 as follows:

"Annually, in cases where the Government does not have other regulations, the Parent Company must develop a plan regarding the need for foreign currency expenditures to report to the Ministry of Finance and the State Bank of Vietnam. Based on the need for foreign currency expenditures, the Parent Company is allowed to use a portion of the foreign currency that must be remitted to the state budget to balance its foreign currency expenditure needs but not exceeding 50% of the Parent Company's foreign currency expenditure needs. The remaining amount, the Vietnam Oil and Gas Corporation will self-balance. The corresponding tax revenues submitted to the state budget will be converted into Vietnamese Dong (VND) based on the average interbank exchange rate at the time of submission."

The Ministry of Finance shall take the lead, in coordination with the State Bank of Vietnam, to guide and inspect the foreign currency balancing of the Parent Company - Vietnam Oil and Gas Corporation.

4. Removing the last part of Article 23 and adding Clause 5 to Article 23 as follows:

"5. Establishing the Reward Fund and Welfare Fund according to the current financial system like other state-owned companies. In addition to the prescribed contribution rate, the Parent Company may increase contributions from post-tax profits to supplement the Reward Fund corresponding to the shortfall but not exceeding three months' salary for cadres, workers, and employees of units invested in 100% by the Vietnam Oil and Gas Corporation, newly operational, without profit or insufficient profit to establish the Reward Fund and Welfare Fund as stipulated in Clause 5 of Article 24 of this Decree, and one month's salary for cadres, workers, and employees working in key oil and gas project management boards.

The additional contributions shall be recorded and tracked separately in the Reward Fund account of the Parent Company. At the end of the year, if the additional contributions are not fully utilized, they can be retained in the fund for future use.

The remaining profit shall be transferred to the Development Investment Fund."

5. Adding to Clause 5 Article 24 as follows:

"The Board of Directors of the Corporation uses the additional contributions for the purposes:

- Awarding groups, individuals, and key state oil and gas project management boards;

- Supporting the shortfall for units invested in 100% by the Vietnam Oil and Gas Corporation, newly operational, without profit or insufficient profit to establish the Reward Fund and Welfare Fund, then the unit can reduce the contribution to the Development Investment Fund (if applicable) to ensure the maximum does not exceed three months' salary for these two funds. If the Development Investment Fund of the unit is insufficient, the Vietnam Oil and Gas Corporation will support the shortfall;

The Board of Directors of the Vietnam Oil and Gas Corporation is responsible for guiding the establishment and use of the Reward Fund and Welfare Fund for this purpose and bears responsibility for the establishment and use of the fund."

Article 2. Effectiveness

This Decree takes effect from June 15, 2010.

Regulations on financial management for state-owned enterprises issued under Decree No. 09/2009/NĐ-CP dated February 5, 2009 of the Government promulgating the Financial Management Regulation for State-Owned Enterprises and the Management of State Capital Invested in Other Enterprises and the Financial Management Regulation of the Parent Company - Vietnam Oil and Gas Corporation issued together with Decree No. 142/2007/NĐ-CP dated September 5, 2007 of the Government which are not contrary to this Decree, the Parent Company - Vietnam Oil and Gas Corporation still has the responsibility to implement them.

Article 3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial and centrally-run city People's Committees; Boards of Directors, General Directors, Directors of state-owned enterprises are responsible for implementing this Decree./.