Environmental protection measures during the decommissioning of petroleum installations in Vietnam from November 04, 2024

Environmental protection measures during the decommissioning of petroleum installations in Vietnam from November 04, 2024 (Image from the Internet)

On September 16, 2024, the Minister of Industry and Trade of Vietnam issued Circular 16/2024/TT-BCT regulating the preservation and destruction of petroleum wells, and the decommissioning of petroleum installations.

1. Environmental protection measures during the decommissioning of petroleum installations in Vietnam from November 04, 2024

According to the provisions of Article 23 Circular 16/2024/TT-BCT, the environmental protection measures during the decommissioning of petroleum installations in Vietnam are as follows:

- Environmental monitoring for the decommissioning of petroleum installations is carried out in accordance with environmental law.

- Cleaning up debris and site clearing

+ The cleaning and surveying of debris must be included in the plan for decommissioning petroleum installations;

+ After completing each cleanup phase, organizations and individuals need to survey the debris to identify and collect debris generated during the decommissioning process or left behind from previous extraction activities lying at the seabed;

+ The extent of the debris survey is calculated from the outer edge of the oil and gas structure:

++  For  wells:  within  a  minimum  radius  of  90  m;

++  For  extraction  platforms:  within  a  minimum  radius  of  100  m;

++  For  underground  wellheads  and  distribution  clusters:  within  a  minimum  radius  of  90  m;

++  For  pipelines  and  other  oil  and  gas  structures:  within  a  minimum  radius  of  10  m.

- Organizations and individuals are responsible for notifying the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade, and the provincial People's Committee with petroleum installations about the plan, resources, and measures to prevent and respond to environmental incidents during the decommissioning process.

2. Regulations on postponing the decommissioning of petroleum installations in Vietnam from November 4, 2024

The postponement of the decommissioning of petroleum installations in Vietnam is specifically regulated in Article 25 Circular 16/2024/TT-BCT as follows:

- Conditions and criteria for considering postponing the decommissioning of petroleum installations include:

+ The oil and gas structure is maintained in integrity, without risks to future decommissioning activities;

+ The postponement of decommissioning the oil and gas structure meets general safety, maritime safety, and environmental protection requirements in accordance with Vietnamese law and international oil and gas industry practices;

+ The postponement of the decommissioning of the oil and gas structure has significant meaning to scientific research, defense, security, or other necessary cases;

+ The fund to ensure the obligation of decommissioning the oil and gas structure is allocated and submitted sufficiently according to the approved decommissioning plan;

+ Wells can only have their decommissioning postponed if the organization or individual takes full responsibility for any potential issues arising due to the postponement;

+ The oil and gas structure still has usable functions and meets the requirements for quality inspection, reinforcement, renovation, and necessary repairs to ensure the safety of the structure according to regulations.

- The main content of the report proposing the postponement of decommissioning petroleum installations includes:

+ The current status of the oil and gas structure;

+ The implementation plan for decommissioning the oil and gas structure;

+ Reasons for proposing the postponement of the decommissioning;

+ Management of potential risks;

+ The estimated postponement duration;

+ Measures to ensure the integrity of the structures;

+ Conclusions and recommendations.

More details can be found in Circular 16/2024/TT-BCT, which comes into force in Vietnam from November 4, 2024, and replacing Circular 17/2020/TT-BCT of the Minister of Industry and Trade of Vietnam regulating the preservation and destruction of petroleum wells.

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