Is there Decree 45/2023/ND-CP on elaborating the Law on Petroleum? What are the solutions for evaluating bids to enter into petroleum contracts in Vietnam?
Is there Decree 45/2023/ND-CP on elaborating the Law on Petroleum?
On July 1, 2023, the Government issued Decree 45/2023/ND-CP on elaborating the Law on Petroleum.
Accordingly, based on Article 1 of Decree 45/2023/ND-CP stipulates as follows:
Scope and regulated entities
1. This Decree elaborates the Law on Petroleum regarding petroleum screening; list of oil blocks; selection of contractors for signing of petroleum contracts; petroleum contracts; safety in petroleum operation; dossiers and procedures for implementing petroleum operation, petroleum projects; preferential treatment in petroleum operations; salvaging of operation of oil fields, groups of oil fields and oil blocks; finalization of costs of petroleum operations on land, islands, and sea waters of the Socialist Republic of Vietnam.
2. This Decree applies to Vietnamese and foreign agencies, organizations, individuals related to petroleum screening and petroleum operations in Vietnam.
At the same time, according to Article 63 of Decree 45/2023/ND-CP stipulating as follows:
Entry into force
1. This Decree comes into force from July 1, 2023 and replaces Decree No. 95/2015/ND-CP dated October 16, 2015 of the Government and Decree No. 33/2013/ND-CP dated April 22, 2013 of the Government.
2. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities are responsible for the implementation of this Decree.
According to the above regulations, Decree 45/2023/ND-CP takes effect from July 1, 2023, replacing Decree 95/2015/ND-CP
Regarding the scope of regulation of Decree 45/2023/ND-CP includes:
- petroleum screening;
- list of oil blocks;
- selection of contractors for signing of petroleum contracts;
- petroleum contracts;
- safety in petroleum operation;
- dossiers and procedures for implementing petroleum operation, petroleum projects;
- preferential treatment in petroleum operations;
- salvaging of operation of oil fields, groups of oil fields and oil blocks; finalization of costs of petroleum operations on land, islands, and sea waters of the Socialist Republic of Vietnam.
Applicable subjects: Vietnamese and foreign agencies, organizations, individuals related to petroleum screening and petroleum operations in Vietnam.
Is there Decree 45/2023/ND-CP on elaborating the Law on Petroleum? What are the solutions for evaluating bids to enter into petroleum contracts in Vietnam? (Image from the Internet)
What are the criteria for selecting contractors to enter into petroleum contracts in Vietnam?
Pursuant to the provisions of Clause 1, Article 18 of Decree 45/2023/ND-CP stipulates as follows:
Criteria for selecting contractors and methods for evaluating bids, competitive bidding documents, and proposals
1. Criteria for selecting contractors include:
a) Criteria regarding capacity and experience of contractors, including: technical and financial capacity, available funding sources for execution of petroleum operations; experience in executing petroleum operations, petroleum contracts (in case of contractor consortium, capacity and experience of contractors shall be determined by the sum of capacity and experience of members of contractor consortium); relevant contracts and agreements that have been and are being implemented (if any);
b) Criteria regarding technical conditions appropriate to each oil block include: minimum work obligations (new seismic acquisition, reprocessing of seismogram, quantity of wells); field development and extraction obligations; methods of implementation and optimal technology for petroleum operations that fulfill of requirements pertaining to environmental protection and reduction of carbon dioxide emission;
c) Criteria regarding economic conditions appropriate to each oil block, including: taxes conforming to tax laws and surcharges when oil price surges; host country’s profit oil, profit gas ratio; participating interests of host country (via the PVN) upon making first commercial discovery within the area covered by petroleum contracts (if applicable); participating interests of PVN or subsidiaries thereof when designated to participate as contractors; percentage of costs recovered; financial commitment corresponding to minimum work obligations; commitment to other financial obligations (commissions, training costs, donations to petroleum scientific research and technology development fund).
According to the above regulations, criteria for selecting contractors include:
- Criteria regarding capacity and experience of contractors
- Criteria regarding technical conditions appropriate to each oil block
- Criteria regarding economic conditions appropriate to each oil block
What are the solutions for evaluating bids to enter into petroleum contracts in Vietnam?
Pursuant to the provisions of Clause 2, Article 18 of Decree 45/2023/ND-CP stipulates as follows:
Criteria for selecting contractors and methods for evaluating bids, competitive bidding documents, and proposals
...
2. Solutions for evaluating bids, competitive bidding documents, and proposals include:
a) Regarding capacity and experience criteria: assess whether each criterion is satisfactory or not satisfactory;
b) Regarding technical condition criteria appropriate to each oil block: assess fulfillment of minimum work obligations and score on a scale of 100;
c) Regarding economic condition criteria appropriate to each oil block: score on a scale of 100;
d) Total results: total scores will be determined as follows: Total scores = Total score of technical condition criteria multiplied (x) by weighing factor of technical condition criteria plus (+) Total score of economic condition criteria multiplied (x) by weighting factor of economic condition criteria. Where minimum weighting factor of technical condition criteria is 0,3 depending on specific characteristics of each oil block; weighting factor of technical condition criteria plus (+) weighting factor of economic condition criteria equal (=) 1;
dd) Bidders shall be awarded with contracts when they achieve all results below: “satisfactory” capacity and experience; requirements regarding minimum work obligations are met and total score of technical condition criteria meet minimum level according to bidding documents; total score of economic condition criteria meet minimum level according to bidding documents; total score under Point d Clause 2 of this Article is the highest.
Accordingly, the solutions for evaluating bids shall be according to the method specified above.
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