Principles for Liquidating Fixed Assets of the Parent Company - Vietnam Oil and Gas Group

According to Clause 3, Article 13 of the Financial Management Regulations of the Parent Company - Vietnam Oil and Gas Group issued together with Decree 36/2021/ND-CP, the regulations on liquidation and sale of fixed assets are as follows:

Principles for liquidation and sale of fixed assets:

- In case the sale of fixed assets of the Parent Company cannot recover sufficient capital, the Parent Company must clearly explain the reasons for the inability to recover capital and report to the representative agency of the owner and the Ministry of Finance before selling the fixed assets for supervision purposes.

- Particularly, in the case of newly invested fixed assets that have been used within the first 03 years but do not achieve economic efficiency according to the investment project approved by the competent authority, and the Parent Company does not need to continue utilizing the assets but the sale cannot recover sufficient capital leading to the Parent Company's inability to repay a loan under the loan contract or agreement, it is necessary to clarify the responsibilities of the involved parties to report to the representative agency of the owner for handling according to legal regulations.

- For the sale and liquidation of assets that are specific to the oil and gas industry, in addition to complying with the regulations of this Decree, it is also necessary to comply with related legal provisions.

Respectfully!