In which cases shall the Ministry of Industry and Trade of Vietnam approve the extension of duration of stage of oil and gas search and exploration?

The Ministry of Industry and Trade of Vietnam shall consider and approve the extension of duration of stage of oil and gas search and exploration in one of the cases specified in Clause 1 Article 29 of Decree No. 95/2015/ND-CP of Vietnam’s Government:

- At the end of each phase or stage of search and exploration, the contractor has discovered oil and gas within the contractual area but the remaining duration is not enough for the contractor to appraise the quality of such detection;

- One or many exploration wells are under the drilling plan or are being drilled but the remaining duration is not enough for completion of drilling and data evaluation after the drilling;

- Contractor requests the committed implementation of additional work;

- Other cases specified in the oil and gas contract.

Note: The extension of the stage of oil and gas search and exploration mentioned above has a total cumulative time of extension not exceeding two (02) years.

Moreover, at least ninety (90) days before the end of each phase or stage of oil and gas search and exploration, the contractor and the Vietnam Oil and Gas Group must issue a document specifying the reason for extension of the stage of search and exploration for submission to the Ministry of Industry and Trade. Within 15 working days after receiving the written request for extension of the stage of search and exploration, the Ministry of Industry and Trade shall consider and approve it.

Besides, Decree No. 95/2015/ND-CP also specifies that the oil and gas contract may be extended under the provisions in Article 17 of the Petroleum Law. At least one (01) year before the end of the oil and gas contract, the contractor and the Vietnam Oil and Gas Group must issue a document specifying the reason for extension of duration of oil and gas contract for submission to the Ministry of Industry and Trade for appraisal.

View relevant provisions 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