Extracting petroleum within an area which Vietnam has declared as a prohibited area shall be fined VND 600 million

According to Article 7 of the Decree No. 99/2020/NĐ-CP of Vietnam’s Government, penalties for administrative violations against regulations on field development and petroleum extraction are as follows:

1. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for failure to keep records of field development, petroleum extraction, equipment measurement, total flow measurement or flow checking equipment measurement as prescribed.

2. A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for any of the following violations:

- Extracting petroleum with an output which reduces the reservoir pressure to a level lower than that approved without permission of the competent authority as prescribed;

- Failure to correctly follow the process for burning and discharging associated gas;

- During the process of well testing, extracting petroleum in excess of the volume allowed by the competent authority organization to be burnt or disposed of;

- Extracting associated gas in case the gas oil ratio is higher than the approved limit, without approval by the competent agency organization.

3. A fine ranging from VND 300,000,000 to VND 400,000,000 shall be imposed for any of the following violations:

- Failure to comply with a request of the Government of Vietnam for selling crude oil and natural gas on the Vietnamese market

- Failure to correctly implement the field development plan and/or early production plan approved by the competent authority organization.

4. A fine ranging from VND 400,000,000 to VND 500,000,000 shall be imposed for any of the following violations:

- Carrying out field development and petroleum extraction when the competent authority has not granted approval of the field development plan or work program and corresponding annual budget;

- Extracting petroleum outside the area specified in the contract without permission of the competent authority.

5. A fine ranging from VND 500,000,000 to VND 600,000,000 shall be imposed for extracting petroleum within an area which the Socialist Republic of Vietnam has declared as a prohibited or temporarily prohibited area.

6. A fine ranging from VND 1,800,000,000 to VND 2,000,000,000 shall be imposed for infringing upon any land, island, internal waters, territorial sea, exclusive economic zone or continental shelf of the Socialist Republic of Vietnam with a view to petroleum extraction.

View more details at the Decree No. 99/2020/NĐ-CP of Vietnam’s Government, effective from October 11, 2020.

Le Vy

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