Conditions for considering postponement of clearing petroleum constructions in Vietnam from November 1, 2024

Conditions for considering postponement of clearing petroleum constructions in Vietnam from November 1, 2024 (Image from the Internet)

Conditions for considering postponement of clearing petroleum constructions in Vietnam from November 1, 2024

According to Article 25 of Circular 16/2024/TT-BCT, the conditions and criteria for considering postponement of clearing petroleum constructions in Vietnam include the following:

- The petroleum facility must maintain its integrity, without posing any risk to future decommissioning activities;

- The postponement of decommissioning must meet the general safety, maritime safety, and environmental protection requirements in accordance with Vietnamese law and international petroleum industry practices;

- The postponement must hold significance for scientific research, national defense, security, or other necessary cases;

- A corresponding fund to ensure obligations for clearing petroleum constructions must be fully allocated and submitted according to the approved decommissioning plan;

- Wells can only be postponed from decommissioning if the organization or individual assumes full responsibility for any issues arising from the postponement;

- The petroleum facility remains functional and meets the requirements for quality inspection, reinforcement, renovation, or repair of any damages (if any), ensuring the safety of the facility as stipulated.

The main content of the report proposing the postponement of clearing petroleum constructions includes:

- Current status of the petroleum facility;

- Implementation plan for decommissioning the petroleum facility;

- Reasons for proposing the postponement of decommissioning;

- Risk management for potential risks;

- Expected period for postponement;

- Solutions to ensure the integrity of the facilities;

- Conclusion and recommendations.

According to Article 26 of Circular 16/2024/TT-BCT, should an organization or individual have fully fulfilled the financial security obligations according to the approved decommissioning plan, the postponement of part or all of an petroleum facility in Vietnam can be considered in the following cases:

- It is technically infeasible to carry out the decommissioning of the facility;

- The proposed decommissioning solutions still cannot safely recover the facility;

- Decommissioning may endanger human life or severely impact the marine environment but does not affect maritime safety;

- Sub-sea pipelines that have not been buried but are naturally buried over time and remain in a buried state, or exposed pipeline sections where the organization or individual has implemented a burial solution;

- Equipment for wellheads, underground structures, piles, pipes, anchors made of concrete, base structures installed on the seabed at depths of at least 500 meters, except in cases with special reasons related to national defense and security;

- The removal of casing pipes of wells, piles, pipes, and structures installed from the seabed upwards;

- petroleum facilities that can demonstrate benefits if left in place.

The proposal to retain petroleum facilities should include:

- Current status of the petroleum facility;

- Reasons for proposing to retain the facility;

- Risk management for potential risks;

- Solutions to ensure the integrity of the facilities;

- Conclusion and recommendations.

Responsibilities of organizations or individuals when retaining petroleum facilities:

- Establish warning devices and maritime safety systems for the retained petroleum facilities in accordance with maritime laws;

- Transfer the entire fund ensuring obligations for clearing petroleum constructions to the decommissioning of the facilities as stipulated in Articles 53 and 54 of Decree 45/2023/ND-CP;

- Transfer the petroleum facility to the Vietnam petroleum Group or an organization approved by the competent authority.

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