What is hydrocarbon exploration in Vietnam? What is the duration of hydrocarbon exploration in Vietnam?
What is hydrocarbon exploration? Grounds for carrying out petroleum operations?
Pursuant to Clause 33, Article 3 of the 2022 Petroleum Law of Vietnam stipulating as follows:
Definitions
For the purposes of this Law, the terms below shall be construed as follows:
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33. “hydrocarbon exploration” is the prospecting and exploration of oil and gas deposits and quantification of such oil and gas deposits.
Thus, “hydrocarbon exploration” is the prospecting and exploration of oil and gas deposits and quantification of such oil and gas deposits.
Pursuant to Article 7 of the 2022 Petroleum Law of Vietnam stipulating as follows:
Grounds for carrying out petroleum operations
1. Petroleum operations shall be performed under a concluded petroleum contract in respect of oil blocks according to the list approved by the Prime Minister, except for salvage of oil fields, groups of oil fields and oil blocks in accordance with regulations at Point c Clause 2 and Point b Clause 3 Article 41 hereof.
2. The Prime Minister shall approve the list of oil blocks and the list of oil blocks adjusted according to the proposal of PVN, appraisal results and reports of the Ministry of Industry and Trade.
3. The Government of Vietnam shall issue regulations on documents and procedures for appraisal and approval of the list of oil blocks and the adjusted list of oil blocks.
Thus, hydrocarbon exploration is carried out on the grounds as follows:
- The Prime Minister shall approve the list of oil blocks and the list of oil blocks adjusted according to the proposal of PVN, appraisal results and reports of the Ministry of Industry and Trade.
- The Government of Vietnam shall issue regulations on documents and procedures for appraisal and approval of the list of oil blocks and the adjusted list of oil blocks.
What is hydrocarbon exploration in Vietnam? What is the duration of hydrocarbon exploration in Vietnam? (Image from the Internet)
What is the duration of hydrocarbon exploration in Vietnam?
Pursuant to Clause 1, Article 31 of the 2022 Petroleum Law of Vietnam and Clause 2, Article 31 of the 2022 Petroleum Law of Vietnam as follows:
Duration of petroleum contracts
1. Duration of a petroleum contract shall not be over 30 years, where the hydrocarbon exploration period shall not exceed 05 years, except for the case prescribed in Clause 2 of this Article.
2. For an oil block named in the list of oil blocks to which investment incentives and special investment incentives shall be given, the duration of the petroleum contract shall not exceed 35 years, where the hydrocarbon exploration period shall not exceed 10 years.
Thus, the period of hydrocarbon exploration is not more than 5 years
For an oil block named in the list of oil blocks to which investment incentives and special investment incentives shall be given, where the hydrocarbon exploration period shall not exceed 10 years.
What is the duration of hydrocarbon exploration extended when it expires?
Pursuant to Clause 3, Article 31 of the 2022 Petroleum Law of Vietnam, Clause 4, Article 31 of the 2022 Petroleum Law of Vietnam and Clause 8, Article 31 of the 2022 Petroleum Law of Vietnam stipulating as follows:
Duration of petroleum contracts
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3. Duration of a petroleum contract may be extended at the maximum of 05 years and the exploration period may be extended but the extension period shall not exceed 05 years on the basis of the approval of the Ministry of Industry and Trade, except for the case prescribed in Clause 4 of this Article.
4. For reasons of national defense and security, complicated petroleum geology conditions, particularly disadvantageous field conditions for performing petroleum operations or in case of necessity to ensure effective gas extraction period, the Prime Minister shall approve of further extension of the duration of the petroleum contract and the extension period prescribed in Clause 3 of this Article on the basis of the appraisal of the Ministry of Industry and Trade.
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8. The extension period of hydrocarbon exploration, the period in which the discovery area that is declared a commercial discovery is retained and the period in which several rights and obligation stated in the petroleum contract are temporarily relinquished due to force majeure or for the national defense and security reasons shall not be included in the duration of the petroleum contract.
Thus, the extension period of the hydrocarbon exploration period is prescribed as follows:
The hydrocarbon exploration period may be extended but the extension period shall not exceed 05 years on the basis of the approval of the Ministry of Industry and Trade.
For reasons of national defense and security, complicated petroleum geology conditions, particularly disadvantageous field conditions for performing petroleum operations or in case of necessity to ensure effective gas extraction period, the Prime Minister shall approve of further extension of the duration of the petroleum contract and the extension period prescribed in Clause 3 of this Article on the basis of the appraisal of the Ministry of Industry and Trade.
Note: The extension period of hydrocarbon exploration, the period in which the discovery area that is declared a commercial discovery is retained and the period in which several rights and obligation stated in the petroleum contract are temporarily relinquished due to force majeure or for the national defense and security reasons shall not be included in the duration of the petroleum contract.
The 2022 Petroleum Law of Vietnam takes effect from July 1, 2023.
Nguyễn Thị Hồng Nhung
