Circular No. 49-TC/NSNN guides the financial management of profits distributed from the Vietsovpetro joint venture oil and gas enterprise.

CIRCULAR

OF THE MINISTRY OF FINANCE NO. 49 TC/NSNN ON JULY 30, 1997 GUIDING THE MANAGEMENT OF FINANCES FOR PROFITS DISTRIBUTED FROM THE JOINT VENTURE OIL AND GAS COMPANY VIETSOVPETRO

- BASED ON THE LETTER NO. 1938/KTTH ON APRIL 22, 1997 OF THE PRIME MINISTER ON THE MANAGEMENT AND USE OF PROFITS DISTRIBUTED FROM THE JOINT VENTURE OIL AND GAS COMPANY VIETSOVPETRO.

The Ministry of Finance guides the use of profits distributed from the joint venture oil and gas company as follows:

I. GENERAL PROVISIONS

1. The profit share (after tax) distributed from the joint venture oil and gas company Vietsovpetro is allowed by the Government to be retained by the Vietnam Oil and Gas Corporation at the ratio decided by the Prime Minister for investment in developing the Oil and Gas industry. This portion of profit shall only be used for investment in projects approved by competent authorities.

2. Construction projects funded from the aforementioned source must comply with the current regulations on state management of investment and construction. Other development investment projects shall be carried out according to the relevant current regulations of the State.

3. The Ministry of Finance, based on the actual profit retained by the Vietnam Oil and Gas Corporation, will process the recording of revenue and expenditure in the state budget.

4. The Vietnam Oil and Gas Corporation is responsible for managing and using the profit share retained from the Vietsovpetro joint venture oil and gas company in accordance with the state regulations, for the intended purpose, and effectively for the development of the Oil and Gas industry.

II. SPECIFIC PROVISIONS

1. Annually, the Vietnam Oil and Gas Corporation bases its plans on the exploitation and consumption capacity, estimates the profit retained according to the ratio decided by the Prime Minister, allocates capital specifically for each project to be submitted for approval by competent authorities and registered with the Ministry of Planning and Investment and the Ministry of Finance. On this basis, it prepares the annual budget revenue and expenditure report to be submitted to relevant state agencies as prescribed.

2. Investment projects are budgeted based on the permitted capital sources including: the profit retained from the joint venture oil and gas company Vietsovpetro at the ratio decided by the Government and other capital sources according to the prescribed regulations.

3. The entire retained profit must be transferred into a separate account at the State Treasury where transactions are conducted, with the Vietnam Oil and Gas Corporation as the account holder.

4. The Vietnam Oil and Gas Corporation is responsible for sending the approved budget of each project to the Ministry of Finance for monitoring and checking the implementation of basic construction volumes of the projects.

5. Within four working days from receiving payment for each oil lot, the Vietnam Oil and Gas Corporation is responsible for paying the state budget the profit distributed (according to the ratio required to be paid) along with other taxes payable to the state budget; and transferring the retained profit (according to the ratio retained) into the separate account opened at the State Treasury as mentioned above.

6. On the first five days of each month, based on the transfer documents of the retained profit for investment in approved projects deposited in the Vietnam Oil and Gas Corporation's separate account at the State Treasury, the corporation is responsible for preparing a file confirmed by the treasury agency, reporting to the Ministry of Finance to process the recording of revenue and expenditure in the state budget for the retained profit of the previous month.

7. The State Treasury Agency is responsible for checking expenditures from the Vietnam Oil and Gas Corporation's account at the State Treasury to ensure they are spent on approved projects and constructions. The development investment agency is responsible for checking the implementation of basic construction volumes of the projects according to current regulations.

8. The Vietnam Oil and Gas Corporation reports periodically monthly on the implementation situation; organizes accounting work and settlement with the Ministry of Finance regarding the retained profit for investment from the Vietsovpetro joint venture oil and gas company according to current regulations.

III. IMPLEMENTATION PROVISIONS

This Circular takes effect from the 1997 Budget Year.

During the implementation process, if there are any difficulties, please reflect them to the Ministry of Finance for timely supplementation to make it appropriate.