What are the documents for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure in Vietnam?
- What are the documents for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure in Vietnam?
- What are the procedures for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure in Vietnam?
- What are the cases of termination of petroleum contracts in Vietnam?
What are the documents for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure in Vietnam?
Pursuant to the provisions of Clause 2, Article 29 of Decree 45/2023/ND-CP stipulating documents for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure, including:
- Written request for approval of methods for temporarily suspending execution of certain rights and obligations under petroleum contracts due to force majeure;
- Written propositions of the contractors (if any);
- Other relevant documents.
What are the documents for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure in Vietnam?
What are the procedures for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure in Vietnam?
Pursuant to the provisions of Article 29 of Decree 45/2023/ND-CP stipulating procedures for approval of temporary suspension of execution of certain rights and obligations under petroleum contracts due to force majeure as follows:
Step 1: In case of force majeure, the PVN and contractors shall negotiate methods for temporarily suspending execution of certain rights and obligations under petroleum contracts
Step 2: Within 30 days from the date on which an agreement with the contractors has been reached, the PVN shall submit 2 sets of documents (1 set of original documents and 1 set of copies) to the Ministry of Industry and Trade directly or via post service to request approval for methods for temporarily suspending execution of certain rights and obligations under petroleum contracts due to force majeure
Step 3: Within 5 working days from the date on which adequate documents are received, the Ministry of Industry and Trade shall send written request to the Ministry of Planning and Investment, Ministry of Finance, Ministry of Justice, Ministry of National Defense, Ministry of Foreign Affairs, Ministry of Public Security, Committee for Management of State Capital at Enterprises (if PVN participates in petroleum contracts as contractors), and relevant ministries, central departments to provide feedback.
Step 4: Within 15 days from the date on which written request for feedback sent by the Ministry of Industry and Trade is received, ministries and central departments must send written feedback within their competence to the Ministry of Industry and Trade.
Step 5: Within 45 days from the date on which adequate documents are received, the Ministry of Industry and Trade shall promulgate documents approving methods for temporarily suspending execution of certain rights and obligations under petroleum contracts due to force majeure.
What are the cases of termination of petroleum contracts in Vietnam?
Pursuant to Article 35 of the Law on Petroleum 2022, it is stipulated as follows:
Termination of petroleum contracts
1. A petroleum contract shall be terminated according to the term prescribed in the contract or when the duration of the contract ends but the contract is not renewed according to Clause 3 and Clause 4 Article 31 of this Law.
2. A petroleum contract shall be terminated prior to the term agreed upon by the parties if they fulfilled their agreed obligation and notify the PVN 6 months in advance compared to the proposed time to terminate the petroleum contracts.
Pursuant to Clause 3, Article 31 of the Law on Petroleum 2022 and Clause 4, Article 31 of the Law on Petroleum 2022, it is stipulated as follows:
Duration of petroleum contracts
....
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.
Accordingly, the petroleum contracts terminate when:
- A petroleum contract shall be terminated according to the term prescribed in the contract or when the duration of the contract ends but the contract is not renewed
+ not exceed 05 years on the basis of the approval of the Ministry of Industry and Trade
+ the Prime Minister shall approve of further extension of the duration of the petroleum contract and the extension period 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
- A petroleum contract shall be terminated prior to the term agreed upon by the parties if they fulfilled their agreed obligation and notify the PVN 6 months in advance compared to the proposed time to terminate the petroleum contracts.
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