Documents and procedures for assessment and approval of extension of petroleum contracts in Vietnam

Documents and procedures for assessment and approval of extension of petroleum contracts in Vietnam (Internet image) 

Regarding this matter, LawNet would like to answer as follows:

1. Documents and procedures for assessment and approval of extension of petroleum contracts in Vietnam

Documents and procedures for assessment and approval of extension of petroleum contracts in Vietnam according to Article 26 of Decree 45/2023/ND-CP are as follows:

- At least 1 year prior to the termination of petroleum contracts, at request of contractors approved by the PVN, the PVN shall submit 2 sets of documents (1 set of original documents and 1 set of copies) to the Ministry of Industry and Trade directly or via post to request approval for extension of petroleum contracts. The documents consist of:

+ Written request for approval of extension of petroleum contracts which states reason for extension; plans for implementing petroleum operations during extended period; minimum work obligations and minimum financial obligations during extended period (if any);

+ Assessment of PVN regarding request of the contractors; documents on acknowledgement and presentation of the contractors (if any);

+ Other relevant documents.

- Within 5 working days from the date on which adequate documents are received, the Ministry of Industry and Trade shall send written request to the Ministry of Planning and Investment, Ministry of Finance, Ministry of Justice, Ministry of National Defense, Ministry of Foreign Affairs, Ministry of Public Security, Committee for Management of State Capital at Enterprises (if PVN participates in petroleum contracts as contractors), and relevant ministries, central departments to provide feedback.

- Within 15 days from the date on which written request for feedback sent by the Ministry of Industry and Trade is received, ministries and central departments must send written feedback within their competence to the Ministry of Industry and Trade.

- Within 45 days from the date on which adequate documents are received, the Ministry of Industry and Trade shall promulgate documents approving extension of petroleum contracts.

2. Documents and procedures for assessment and approval of contractor selection results to sign petroleum contracts in Vietnam

Documents and procedures for assessment and approval of contractor selection results to sign petroleum contracts in Vietnam according to Article 20 of Decree 45/2023/ND-CP are as follows:

- Within 15 days from the date on which contractor selection results are assessed, PVN shall submit 2 sets of documents (1 set of original documents and 1 set of copies) to the Ministry of Industry and Trade directly or via post service to request for approval of contractor selection results to sign petroleum contracts. The documents consist of:

+ Presentation of bid evaluation results and proposed contractors to sign petroleum contracts together with economic and technical conditions of petroleum contracts;

+ Bidding documents or shopping documents or request for proposals;

+ Bids, competitive bidding documents, or request for proposals;

+ Record of bid opening;

+ Record of contractor assessment, scoring sheets;

+ Documents of PVN requesting clarification to bids or shopping documents or request for proposals and written response of bidders (if any);

+ Other relevant documents.

- Assessment of contractor selection results to sign petroleum contracts includes:

+ Assessment of the basis of contractor selection process;

+ Assessment of compliance with time regulations during contractor selection process;

+ Assessment of appropriateness of assessment solutions and contractor selection criteria;

+ Assessment of compliance with the law during evaluation of bids, competitive bidding documents, and request for proposals;

+ Consideration of different opinions (if any) of expert teams;

+ Other relevant details.

- Within 5 working days from the date on which adequate documents are received, the Ministry of Industry and Trade shall send written request to the Ministry of Planning and Investment, Ministry of Finance, Ministry of Justice, Ministry of National Defense, Ministry of Foreign Affairs, Ministry of Public Security, Committee for Management of State Capital at Enterprises (if PVN participates in petroleum contracts as contractors), and relevant ministries, central departments to provide feedback.

- Within 15 days from the date on which written request for feedback sent by the Ministry of Industry and Trade is received, ministries and central departments must send written feedback within their competence to the Ministry of Industry and Trade.

+ Within 45 days from the date on which adequate documents are received, the Ministry of Industry and Trade shall assess contractor selection results to sign petroleum contracts and request the Prime Minister to consider and approve. The documents consist of:

+ Written presentation of assessment results and written request for approval of contractor selection results to sign petroleum contract to be sent to the Prime Minister;

+ Documents under Clause 1 of Article 20 of Decree 45/2023/ND-CP;

+ Consolidated report on acknowledgement and presentation of feedback of ministries, central departments, and copies of written feedback of ministries and central departments.

- Within 15 days from the date on which written approval for contractor selection results sent by the Prime Minister is received, the PVN shall inform bidders about contractor selection results, basic economic and technical conditions of petroleum contracts, and plans for negotiating petroleum contracts.

- Within 90 days from the date on which notice on contractor selection results sent by the PVN is received, contractors and PVN must finish negotiating petroleum contracts. If details of draft petroleum contracts have not been agreed upon within the aforementioned time limit, the PVN shall file reasons for disagreement and proposed negotiation time limit to the Ministry of Industry and Trade.

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