Vietnam: What are the conditions for public bidding for oil and gas exploration and extraction projects?

According to Decree No. 95/2015/ND-CP of Vietnam’s Government, the forms of contractor selection for implementation of oil and gas exploration and extraction project include: Public bidding; Competitive bidding; Appointment of contractor.

The contractor selection in the form of public bidding is applied on the principle of international competition without prequalification. All organizations or individuals that meet the conditions specified in Article 8 of this Article may participate in the bidding.

Conditions for entities participating in public bidding for oil and gas exploration and extraction project are specified in Decree No. 95/2015/ND-CP as follows:

The bidder must meet the following conditions:

- If the bidder is an organization:

+ Has certificate of establishment and operation issued under regulations of law of the country where the bidder is operating;

+ Is not under the dissolution process, not concluded to fall into bankruptcy or to be unable to pay debts as prescribed by law;

+ Is not within the time of prohibited bidding participation.

- If the bidder is an individual:

+ Has full capacity for civil acts under the regulations of law of the country of which such individual is a citizen;

+ Is not under the prosecution for criminal liability;

+ Is not within the time of prohibited bidding participation.

- Has full financial and technical capacity and professional experiences in the area of oil and gas exploration and extraction;

- Has or is involved in at least 02 oil and gas exploration and extraction contracts.

Organizations or individuals that do not meet the condition “having or being involved in at least 02 oil and gas exploration and extraction contracts” and wish to participate in the oil and gas activities in Vietnam shall join the partnership with the eligible organizations or individuals to form a oil and gas contractor partnership as stipulated by this Decree. In this case, such eligible organizations or individuals shall act as representative for all parties in the oil and gas contractor partnership to participate in the bidding and shall be the operator.

View more details at: Decree No. 95/2015/ND-CP of Vietnam’s Government takes effect from December 01, 2015.

Thu Ba

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