Payable surcharge amounts for petroleum projects eligible for investment promotion in Vietnam

Payable surcharge amounts for petroleum projects eligible for investment promotion in Vietnam (Internet image) 

Article 6 of Circular 22/2010/TT-BTC stipulates the payable surcharge amounts for petroleum projects eligible for investment promotion in Vietnam as follows:

A quarterly payable surcharge amount is equal to 30% of the profit oil volume divided to a contractor on a quarterly basis when the average sale price of crude oil in a quarter increases by over 20% compared to the base price in the corresponding year. The surcharge amount shall be determined as follows:

In which:

- The average sale price of crude oil in the quarter is the price calculated by the contractor based on statistical data on actual daily sale prices of crude oil in each quarter, in which:

• The first quarter is the period from January 1 to March 31;

• The second quarter is the period from April 1 to June 30;

• The third quarter is the period from July 1 to September 30;

• The fourth quarter is the period from October 1 to December 31.

- The base price in the corresponding year is the price estimated for the corresponding year which is stated in the approved oilfield development plan. In case the approved oilfield development plan is modified or supplemented, the base price in the corresponding year is the price estimated in the approved oilfield development plan which has been modified or supplemented for the year of implementation. For oilfields planned for further exploitation after the expiration of petroleum contracts, the base price of the last year of the petroleum contract will apply.

- Petroleum projects eligible for investment promotion are those under which petroleum activities will be conducted offshore, in deep-water seas or areas with extremely difficult geographical conditions or complex geological conditions or other listed areas to be decided by the Prime Minister.

More details can be found in Circular 22/2010/TT-BTC, which comes into force from March 29, 2010.

Nguyen Phu

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