04 Methods of selection of contractors for signing of petroleum contracts in Vietnam

04 Methods of selection of contractors for signing of petroleum contracts in Vietnam

According to the provisions of Article 15 of the Petroleum Law 2022 (effective from July 1, 2023), the selection of contractors for available oil blocks shall be made by one of the following methods:

- Open bidding;

- Limited bidding;

- Shopping;

- Direct contracting.

04 Methods of selection of contractors for signing of petroleum contracts in Vietnam (Internet image)

Regulations on open bidding in Vietnam

- Open competitive bidding shall be applied to the selection of petroleum contractors for oil blocks that are ineligible for cases prescribed in Articles 19, 20 and 21 of this Law.

- An open bidding process consists of the following stages:

+ Notice bidders;

+ Receive bidders' registration applications;

+ Issue bidding documents;

+ Receive, open and evaluate bids;

+ Appraise, approve and notice the contractor selection results and basic economic and technical requirements of petroleum contracts;

+ Negotiate and complete petroleum contracts;

+ Appraise, approve and sign petroleum contracts.

Regulations on limited bidding in Vietnam

- Limited bidding shall be applied to the selection of petroleum contractors in case there are special requirements that only a few contractors can satisfy.

- A limited bidding process consists of the stages of the open bidding process prescribed in Clause 2 Article 18 of this Law.

Regulations on forms of competitive bidding
- The selection of contractors to sign oil and gas contracts in the form of competitive bidding is applied in cases where the oil and gas lot is not included in the existing contractor selection plan and is proposed by at least 02 organizations. , individuals who fully meet the conditions specified in Article 16 of the Petroleum Law 2022 to sign oil and gas contracts.

- The competitive bidding process includes the following steps:

+ Notice of competitive bidding;

+ Register to participate in competitive bidding;

+ Issuing competitive bidding documents;

+ Receive and evaluate competitive bidding documents;

+ Appraise, approve and notify contractor selection results and basic economic and technical conditions of the oil and gas contract;

+ Negotiate and finalize oil and gas contracts;

+ Appraise, approve and sign oil and gas contracts.

Regulations on shopping in Vietnam

- The selection of petroleum contractors shall apply shopping in case oil blocks are not under the existing contractor selection plans and are proposed by at least 02 eligible organizations and individuals prescribed in Article 16 of this Law to sign petroleum contracts.

- A shopping process consists of the following stages:

+ Notice shopping;

+ Apply for shopping;

+ Issue shopping documents;

+ Receive documents and evaluate competitive bidding documents;

+ Appraise, approve and notice contractor selection results and basic economic and technical requirements of petroleum contracts;

+ Negotiate and complete petroleum contracts;

+ Appraise, approve and sign petroleum contracts.

Mai Thanh Loi

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