In what forms is the oil and gas contract signed? Do oil and gas contracts in Vietnam have a maximum duration?
In what forms is the oil and gas contract signed?
Pursuant to Clause 1, Article 25 of Decree No. 95/2015/ND-CP stipulating the forms of oil and gas contract as follows:
Forms of oil and gas contract
1. The oil and gas contract shall be signed in the form of oil and gas product sharing contract or other forms upon which the Vietnam Oil and Gas Group shall agree with the contractor with the approval from the Prime Minister.
2. The oil and gas contract must comply with the sample contract issued by the Government, except for other cases decided by the Prime Minister.
Thus, the oil and gas contract shall be signed in the form of oil and gas product sharing contract or other forms upon which the Vietnam Oil and Gas Group shall agree with the contractor with the approval from the Prime Minister.
At the same time, the oil and gas contract must comply with the sample contract issued by the Government, except for other cases decided by the Prime Minister.
Specifically, oil and gas contracts must comply with the form in Decree No. 33/2013/ND-CP issued by the Government.
In what forms is the oil and gas contract signed? Do oil and gas contracts in Vietnam have a maximum duration? (Image from the Internet)
Do oil and gas contracts in Vietnam have a maximum duration?
Pursuant to Article 27 of Decree No. 95/2015/ND-CP stipulating the duration of oil and gas contracts stipulating as follows:
Duration of oil and gas contract
1. Where the oil and gas only provides for the general duration irrespective of the duration for the oil and gas, such duration shall apply to both oil and gas.
2. Where the oil and gas only provides for the duration for gas but oil is discovered within the contractual area, the duration of oil and gas contract for the oil is as follows:
a) The duration of contract for oil shall not exceed twenty-five (25) years;
b) For encouraged oil and gas investment projects, the duration of contract for oil shall not exceed thirty (30) years.
3. Where the oil and gas only provides for the duration for oil but gas is discovered within the contractual area, the duration of oil and gas contract for the gas shall not exceed thirty (30) years.
4. Where the oil and gas only provides for the duration of both oil and gas, the duration of oil and gas contract is applied under the provisions in the contract.
Thus, in the case of an oil and gas contract, when there are provisions for oil and gas, the term of the oil and gas contract is not fixed but shall be applied according to the provisions of the contract.
Where the oil and gas only provides for the duration for gas but oil is discovered within the contractual area, the duration of oil and gas contract for the oil is as follows:
- The duration of contract for oil shall not exceed twenty-five (25) years;
- For encouraged oil and gas investment projects, the duration of contract for oil shall not exceed thirty (30) years.
Where the oil and gas only provides for the duration for oil but gas is discovered within the contractual area, the duration of oil and gas contract for the gas shall not exceed thirty (30) years.
How to perform negotiation on oil and gas contracts in Vietnam?
Pursuant to Article 26 of Decree No. 95/2015/ND-CP stipulating the negotiation on oil and gas contracts in Vietnam as follows:
Negotiation on oil and gas contract
1. The Vietnam Oil and Gas Group is responsible for negotiation on oil and gas contract based on the result of bidding, competitive bidding or contractor appointment approved by the Prime Minister. The time for negotiation on oil and gas contract must not exceed ninety (90) days after the Vietnam Oil and Gas Group has announced the result of contractor selection.
2. If exceeding the time limit of ninety (90) days but the for negotiation on oil and gas contract has not finished, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade on the reason and request the extension time of negotiation for the Ministry of Industry and Trade to consider and decide. The extension time of negotiation shall not exceed sixty (60) days.
3. In case of exceeding the extension time of negotiation specified in Clause 2 of this Article but the contract negotiation has not finished, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for appraisal and submission to the Prime Minister for consideration and decision.
Thus, the negotiation on oil and gas contracts is carried out as follows:
- The Vietnam Oil and Gas Group is responsible for negotiation on oil and gas contract based on the result of bidding, competitive bidding or contractor appointment approved by the Prime Minister. The time for negotiation on oil and gas contract must not exceed ninety (90) days after the Vietnam Oil and Gas Group has announced the result of contractor selection.
- If exceeding the time limit of ninety (90) days but the for negotiation on oil and gas contract has not finished, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade on the reason and request the extension time of negotiation for the Ministry of Industry and Trade to consider and decide. The extension time of negotiation shall not exceed sixty (60) days.
- In case of exceeding the extension time of negotiation specified in Clause 2 Article 26 of Decree No. 95/2015/ND-CP but the contract negotiation has not finished, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for appraisal and submission to the Prime Minister for consideration and decision.
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