According to the law in Vietnam, how to handle petroleum contracts issued with investment registration certificate (IRC) before 01/7/2023?

Decree 45/2023/NĐ-CP elaborating the Law on Petroleum in 2022 in Vietnam

On July 1, 2023, the Government issued the Decree 45/2023/ND-CP elaborating the Law on Petroleum in 2022.

The Decree 45/2023/ND-CP provides detailed guidance on a number of articles of the Petroleum Law 2022 on the following specific contents:

- Petroleum screening

- List of oil blocks; selection of contractors for signing of petroleum contracts;

- Petroleum contracts;

- Safety in petroleum operation;

- Dossiers and procedures for implementing petroleum operation, petroleum projects;

- Preferential treatment in petroleum operations;

- Salvaging of operation of oil fields, groups of oil fields and oil blocks;

- Finalization of costs of petroleum operations on land, islands, and sea waters of the Socialist Republic of Vietnam.

This Decree applies to Vietnamese and foreign agencies, organizations, individuals related to petroleum screening and petroleum operations in Vietnam.

What are procedures for issuance of investment registration certificate (IRC) in petroleum in Vietnam?

Pursuant to Article 22 of the Decree 45/2023/ND-CP stipulating procedures for issuance of investment registration certificate in petroleum in Vietnam as follows:

Step 1. Within 5 working days from the date on which petroleum contracts are signed, the PVN shall submit 1 set of original documents to the Ministry of Industry and Trade to request issuance of investment registration certificate (IRC) to contractors performing petroleum operations.

The documents consist of:

- Written request for issuance of IRC for signed petroleum contracts to contractors performing petroleum operations;

- Original petroleum contracts signed by the PVN and the contractors.

Step 2. Within 15 days from the date on which adequate documents are received, the Ministry of Industry and Trade shall issue investment registration certificate to contractors and the PVN and send original copies of the IRC to the Ministry of Finance, Ministry of Planning and Investment, Ministry of Justice, and tax authorities.

Step 3. Within 30 days from the date on which contractors fulfill all obligations under petroleum contracts or the date on which petroleum contracts are terminated in accordance with Article 35 of the Law on Petroleum (whichever comes later), the contractors must submit original copies, main copies of IRC and revised IRC (if any) to the PVN in order to submit to the Ministry of Industry and Trade.

According to the law in Vietnam, how to handle petroleum contracts issued with investment registration certificate (IRC) before 01/7/2023?

Pursuant to Article 64 of the Decree 45/2023/ND-CP stipulating transition clause as follows:

Transition clause

1. With respect to petroleum contracts issued with IRC before the effective date hereof, entitlement, documents, and procedures for assessment, approval of new reports, plans, programs or revised reports, plans, programs after the effective date hereof shall conform to this Decree.

2. Joint operating companies representing the contractors coordinating petroleum operations established before the effective date hereof shall continue to operate in accordance with petroleum contracts.

As regulations above, petroleum contracts issued with investment registration certificate (IRC) before the effective date of the Decree 45/2023/ND-CP (before 01/7/2023), entitlement, documents, and procedures for assessment, approval of new reports, plans, programs or revised reports, plans, programs after the effective date hereof shall conform to regulations in the Decree 45/2023/ND-CP.

Best regards!