Rights and obligations of contractors according to the Law amending and supplementing the Law on Petroleum in 2000 of Vietnam

This Law amends and supplements a number of articles of the Law on Petroleum 1993 of Vietnam. In particular, this Law amends and supplements the rights and obligations of contractors. Specifically, according to Clause 10 and Clause 12 Article 1 of the Law amending and supplementing the Law on Petroleum in 2000 of Vietnam, contractors shall have the following rights and obligations:

1. Rights of contractors

Contractors shall have the following rights:

- To enjoy preferences and guarantees provided for by the Vietnamese law;

- To use samples, data and information which have been obtained for conducting petroleum activities;

- To recruit laborers to perform work of the petroleum contract on the basis of preferential employment of Vietnamese laborers;

- To hire sub-contractor(s) according to provisions of this Law and in conformity with international practices of the petroleum industry;

- To be exempted from import tax and export tax according to provisions of Article 34 of this Law;

- To own its petroleum portion after fulfilling the financial obligations toward the Vietnamese State;

- To export its petroleum portion as agreed upon in the petroleum contract without having to apply for export permit;

- To recover its investment capital as agreed upon in the petroleum contract.

Contractors being foreign organizations or individuals shall be entitled to open accounts in Vietnam and abroad; to transfer abroad income from the sale of petroleum being part of recovered expenses, profits and other lawful revenues earned in the course of petroleum activities.

Contractors being foreign organizations or individuals shall be entitled to buy foreign currencies at commercial banks to meet requirements of current transactions and other permitted transactions according to provisions of the legislation on foreign exchange management; and to have foreign currency balance ensured for important projects.

2. Obligations of contractors

Contractors shall have the following obligations:

- To comply with the Vietnamese law;

- To fulfill its commitments inscribed in the petroleum contract;

- To pay taxes and fees as prescribed by the Vietnamese law;

- To transfer technologies; to train and employ Vietnamese officials and workers, and to ensure laborers’ interests;

- To apply measures for environmental protection and ensuring of safety in petroleum activities;

- To report petroleum activities to the competent State management agency(ies) and the Vietnam Oil and Gas Corporation;

- To supply necessary documents to inspection delegations;

- To remove and dismantle installations, equipment and facilities upon the termination of petroleum activities at the request of the competent State management agency(ies);

- To sell on the Vietnamese market a portion of crude oil under its ownership at the international competitive price at the Vietnamese Government’s request and sell natural gas on the basis of agreements in gas development and exploitation projects.

View more details: The Law amending and supplementing the Law on Petroleum in 2000 amends and supplements a number of articles of the Law on Petroleum 1993 of Vietnam.

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