What are the regulations on the duration of petroleum contracts and extension of duration of petroleum contracts in Vietnam? How long is the hydrocarbon exploration period in Vietnam?
What are the regulations on the duration of petroleum contracts and extension of duration of petroleum contracts 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, duration of a petroleum contract shall not be over 30 years.
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.
Pursuant to Clause 3, Article 31 of the 2022 Petroleum Law of Vietnam, and Clause 4, 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, duration of a petroleum contract may be extended at the maximum of 05 years and must be approved by 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.
What are the regulations on the duration of petroleum contracts and extension of duration of petroleum contracts in Vietnam? How long is the hydrocarbon exploration period in Vietnam?
How long is the hydrocarbon exploration period 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 the hydrocarbon exploration period shall not exceed 05 years.
For an oil block named in the list of oil blocks to which investment incentives and special investment incentives shall be given, the hydrocarbon exploration period shall not exceed 10 years.
Can the hydrocarbon exploration period be extended when it expires?
Pursuant to Clause 3, Article 31 of the 2022 Petroleum Law of Vietnam, Clause 2, 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
…
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.
…
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 hydrocarbon exploration period may be extended.
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 over 05 years 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.
Thus, the hydrocarbon exploration period may be extended.
The 2022 Petroleum Law of Vietnam takes effect on July 1, 2023.
Nguyễn Thị Hồng Nhung