Vietnam: When shall the exercise of rights and obligations in oil and gas contract be suspended?

According to Decree No. 95/2015/ND-CP of Vietnam’s Government, the exercise of rights and obligations in oil and gas contract shall be suspended in certain unforeseen circumstances and special cases. To be specific:

Firstly, suspension in case of unforeseen circumstances

- In case of unforeseen circumstances, the parties involved in the oil and gas contract may agree on the mode of suspension of exercise of rights and obligations under the provisions of the oil and gas contract;

- In case the unforeseen circumstances end but the contractor need time to remedy the consequences of such unforeseen circumstances, the Prime Minister shall authorize the Ministry of Industry and Trade to consider and decide the continued suspension of exercise of rights and obligations in the oil and gas contract based on the request of the Vietnam Oil and Gas Group.

Within 15 working days after receiving the written request for continued suspension of exercise of rights and obligations in the oil and gas contract, the Ministry of Industry and Trade shall consider and make decision.

Secondly, suspension in special cases

- In special cases, it is permissible to suspend the exercise of some rights and obligations in oil and gas contract as stipulated in Clause 1, Article 30 of this Decree;

- The contractor and the Vietnam Oil and Gas Group shall request the Ministry of Industry and Trade in writing to suspend the exercise of some rights and obligations in special cases.

In case of suspension of exercise of some rights and obligations in oil and gas contract for the reasons of security and national defense, the Ministry of Industry and Trade shall make appraisal as stipulated in Article 81 of this Decree for submission to the Prime Minister for consideration and decision.

The suspension of exercise of some rights and obligations in oil and gas contract in other special cases (except for the reasons of security and national defense), the Prime Minister shall authorize the Ministry of Industry and Trade to consider and make decision within 15 working days after receiving the written request of the contractor and the Vietnam Oil and Gas Group.

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

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE