DECREE

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE GOVERNMENT'S DECREE NO. 48/2000/ ND-CP DETAILING THE PETROLEUM LAW AND THE REGULATION ON BIDDING FOR PETROLEUM SURVEY, EXPLORATION AND EXPLOITATION PROMULGATED TOGETHER WITH DECREE NO. 34/2001/ND-CP

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the July 6, 1993 Petroleum Law; the June 9, 2000 Law Amending and Supplementing a Number of Articles of the Petroleum Law; and the June 3, 2008 Law Amending and Supplementing a Number of Articles of the Petroleum Law;
At the proposal of the Ministry of Industry and Trade,

DECREES:

Article 1. Scope of amendment and supplementation

This Decree amends and supplements a number of articles of the Government's Decree No. 48/2000/ND-CP of September 12, 2000, detailing the Petroleum Law (below referred to as Decree No. 48/2000/ND-CP), and the Regulation on bidding for petroleum survey, exploration and exploitation promulgated together with Decree No. 34/2001/ND-CP (below referred to as the bidding regulation).

Article 2. To amend and supplement a number of articles of Decree No. 48/2000/ND-CP

1. Article 3 is amended and supplemented as follows:

"Article 3. Entities entitled to conduct petroleum activities

1. Organizations and individuals entitled to conduct petroleum activities include:

a/ Enterprises established and operating under the law on enterprises;

b/ Vietnamese and foreign organizations and individuals.

2. Enterprises, organizations and individuals defined in Clause 1 of this Article may conduct petroleum activities under petroleum contracts signed with the Vietnam Oil and Gas Group under the Petroleum Law, this Decree and relevant legal documents.

3. Petroleum survey and exploration of the Vietnam Oil and Gas Group shall be conducted by its member companies under petroleum contracts signed under Clause 2 of this Article."

2. To annul Clause 1, Article 4.

3. To add Clause 8 to Article 4 as follows:

"8. Plan on dismantlement of fixed works, equipment and means means a document containing technical and technological solutions, total costs and schedule for the dismantlement of fixed works, equipment and means in service of petroleum activities."

4. Article 15 is amended and supplemented as follows:

"Article 15. Obligation to dismantle fixed works, equipment and means in service of petroleum activities

1. Organizations and individuals conducting petroleum survey, exploration and exploitation are obliged to dismantle fixed works, equipment and means in service of petroleum activities.

2. Organizations and individuals conducting petroleum exploitation shall work out plans on dismantlement of fixed works, equipment and means and funds for the dismantlement under law. and submit them to the Ministry of Industry and Trade for consideration and approval.

3. Organizations and individuals shall dismantle fixed works, equipment and means in service of petroleum activities under approved plans.

If their requests are approved by the Ministry of Industry and Trade or the Ministry of Industry and Trade requests, organizations and individuals may be exempt from dismantling all or part of fixed works, equipment and means in service of petroleum activities.

4. Expenses for the dismantlement shall be accounted as retrieved petroleum expenses."

5. Article 25 is amended and supplemented as follows:

"Article 25. Prolongation of the survey and exploration stage and extension of petroleum contracts

1. Prolongation of the survey and exploration stage

In case each sub-stage or the whole stage of survey and exploration expires but contractors have not yet fulfilled their work programs, the deadline of each sub-stage or the whole stage of survey and exploration may be prolonged, provided that the total prolonged duration must not exceed the duration specified in Article 17 of the Petroleum Law. At least 90 days before the end of each sub-stage or the whole stage of survey and exploration, contractors and the Vietnam Oil and Gas Group shall submit to the Ministry of Industry and Trade reports clearly stating reasons for the prolongation. Within 25 working days after receiving written reports, the Ministry of Industry and Trade shall consider and approve the prolongation.

2. Extension of petroleum contracts

Petroleum contracts may be extended under Article 17 of the Petroleum Law.

At least one year before the expiration of a petroleum contract, the contractor and the Vietnam Oil and Gas Group shall submit a report clearly stating the reason for extension of the petroleum contract to the Prime Minister and concurrently to the Ministry of Industry and Trade for examination.

Within 35 working days after receiving the report, the Ministry of Industry and Trade shall propose the Prime Minister to consider and decide on extension of the petroleum contract."

6. To add Article 25a as follows:

"Article 25a. Prolongation of the survey and exploration stage and extension of petroleum contracts in special cases

1. Special cases in which the survey and exploration stage may be prolonged or petroleum contracts may be extended under Clause 2, Article 17 of the Petroleum Law are cases in which such prolongation or extension is given for national defense or security reasons.

At least 90 days before the end of the survey and exploration stage or at least one year before the expiration of a petroleum contract, the contractor and the Vietnam Oil and Gas Group shall submit a report clearly stating the reason for prolongation of the survey and exploration stage or extension of the petroleum contract to the Prime Minister and concurrently to the Ministry of Industry and Trade for examination.

2. Within 35 working days after receiving the report, the Ministry of Industry and Trade shall submit to the Prime Minister its examination opinions on prolongation of the survey and exploration stage or extension of the petroleum contract."

7. Article 30 is amended and supplemented as follows:

"Article 30. Early exploitation

In the survey and exploration stage, if contractors conduct early exploitation in areas under petroleum contracts, they shall submit early exploitation programs and plans to the Ministry of Industry and Trade for approval under the Petroleum Law, this Decree and relevant laws."

8. Article 35 is amended and supplemented as follows:

"Article 35. Discovery of petroleum of a commercial potential beyond contractual areas

In case petroleum of commercial potential is discovered outside areas under petroleum contracts and within blocks for which no petroleum contract has been signed yet, contractors and the Vietnam Oil and Gas Group shall submit reports clearly stating reasons for expansion of contractual areas to the Prime Minister and concurrently to the Ministry of Industry and Trade for examination."

9. Article 36 is amended and supplemented as follows:

"Article 36. Field consolidation

In case petroleum of commercial potential is discovered in areas under petroleum contracts and this petroleum field overlap areas of blocks for which petroleum contracts have been signed, involved parties may reach agreement on formulation of a project on joint exploitation of the whole field, and then submit it to the Prime Minister and concurrently to the Ministry of Industry and Trade for examination."

10. Article 37 is amended and supplemented as follows:

"Article 37. Bidding for petroleum services

1. Organizations and individuals conducting petroleum survey, exploration and exploitation may sign petroleum service provision contracts with sub-contractors or other organizations and individuals in service of petroleum activities.

2. For petroleum contracts signed before the effective date of this Decree, the bidding for and signing of contracts on provision of petroleum services directly related to petroleum survey, exploration, field development and exploitation must comply with the provisions of signed petroleum contracts.

3. For petroleum contracts signed after the effective date of this Decree, the bidding for and signing of contracts on provision of petroleum services directly related to petroleum survey, exploration, field development and exploitation must comply with the provisions of signed petroleum contracts and adhere to the following principles:

a/ Assuring the investment effectiveness of projects and, publicity and transparency in organizing the bidding for and signing of contracts;

b/ Being compatible with particular characteristics of the petroleum sector in the petroleum survey, exploration, field development and exploitation;

c/ Prioritizing the use of petroleum services which can be provided by Vietnamese organizations and individuals."

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