National Assembly of Vietnam passed the amended Law on Petroleum

Chief of the Economic Committee Vu Hong Thanh reports on the explanation and reception of the amended Law on Petroleum in Vietnam - Photo: VGP/LS

Presenting the report on the explanation, reception, and modification of the draft amended Law on Petroleum, Chief of the National Assembly's Economic Committee Vu Hong Thanh stated that the draft has supplemented the regulations where the Prime Minister of Vietnam decides on the mechanism for operating the exploitation of marginal fields, clusters of fields, and oil and gas lots.

This is a new policy with many breakthrough contents, serving as a necessary legal basis to more effectively exploit oil and gas resources, contributing to increasing state budget revenue in the context of forecasts that many oil and gas fields in the next few years will transition to the end-life production stage.

To complete the legal basis for the operation of marginal oil and gas exploitation, the Standing Committee of the National Assembly also recommends that the Government of Vietnam absorbs the opinions of the National Assembly deputies, directs ministries, and agencies, and the Vietnam Oil and Gas Group to continue to perfect this content in the draft Decree and review and promulgate other related subordinate legal documents.

Emphasize regulations to ensure the efficiency of marginal exploitation activities and tightly control oil and gas operation costs.

The Ministry of Industry and Trade of Vietnam promptly establishes, promulgates, and guides cost norms, economic and technical norms for basic oil and gas surveys and oil and gas activities.

The Ministry of Finance, Ministry of Planning and Investment, and relevant agencies and organizations of Vietnam closely coordinate and take responsibility according to their authority to develop and issue other related documents.

Previously, in the discussion, there were opinions suggesting that "individuals" should not be regulated to participate in basic oil and gas surveys and oil and gas activities as it may lead to prioritizing personal interests over national interests, potentially causing a loss of the country's resources.

However, according to Chief of the Economic Committee Vu Hong Thanh, the draft Law stipulates that "individuals" are permitted to participate in basic oil and gas surveys and oil and gas activities in line with policies encouraging and attracting investment in this field.

When conducting basic surveys and oil and gas activities, it must be based on respect for independence, sovereignty, territorial integrity, sovereign rights, jurisdiction, and ensure national interests and security of Vietnam, complying with Vietnamese laws and international treaties to which Vietnam is a signatory.

Delegates vote to pass the amended Law on Petroleum - Photo: VGP/LS

Regarding oil and gas contracts, a topic of interest to many delegates during the discussion, Mr. Vu Hong Thanh disclosed that there were suggestions to continue reviewing to specify the unique contents of oil and gas contracts, ensuring clear, transparent, and strict regulations in the spirit of decentralization and administrative procedure reform.

The Government of Vietnam is authorized to issue the standard form contract for oil and gas product-sharing contracts and provide detailed regulations on relevant mechanisms and policies.

In response to delegates’ suggestions, the draft Law has been revised to add two separate provisions on the responsibilities of relevant entities for deciding on the suspension of certain rights and obligations under oil and gas contracts in two cases: Force majeure and for national defense and security reasons, ensuring appropriateness and strictness.

In circumstances of force majeure, the parties involved in the oil and gas contract shall agree on the method for suspending certain rights and obligations in the contract, with the Vietnam Oil and Gas Group reporting to the Ministry of Industry and Trade for a decision.

In cases of national defense and security reasons, the time for suspending certain rights and obligations in the oil and gas contract is decided by the Prime Minister of the Government of Vietnam based on the proposal of the competent authority.

To unify the authority of the Prime Minister of the Government of Vietnam regarding oil and gas projects, the draft Law stipulates that in case the project requires conversion of the use purpose of national forest land, nature reserves, border protection forests of 50 hectares or more, two-crop rice cultivation land of 500 hectares or more, the National Assembly decides on the change of land use purpose before the Prime Minister of the Government of Vietnam approves the project implementation policy.

Le Son

According to the Government Portal of Vietnam

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