Petroleum Contract Must Follow the Template Prescribed by the Government of Vietnam

10:05, 11/07/2024

According to the provisions of the Petroleum Law 1993, Petroleum Contracts are concluded in the form of Production Sharing Contracts, Joint Venture Contracts, or other forms and must comply with the Model Contract issued by the Government of Vietnam.

Petroleum Law 1993 stipulates: A petroleum contract must include the following main contents:

Legal status of organizations and individuals participating in the contract;
Subject of the contract;
Area limits and the progress of area return under the contract;
Contract duration;
Conditions for early termination or extension of the contract;
Commitments regarding work progress and financial investment;
Rights and obligations of the contracting parties;
Investment capital recovery, determination and distribution of profits; the host country’s rights to fixed assets after capital recovery and upon contract termination;
Conditions for the transfer of rights and obligations of the contracting parties; the right of Vietnam Oil and Gas Corporation to participate in investment capital;
Commitment to training and prioritizing the use of Vietnamese labor and services;
Responsibility to protect the environment and ensure safety during petroleum activities;
Procedures for resolving disputes arising from the contract.

In addition to the provisions in the Sample Contract, the contracting parties may agree on other terms not contrary to this Law and Vietnamese law.

For details on the sample contract, refer to Decree 33/2013/ND-CP.

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