Nghị định 95/2015/ND-CP

DECREE

DETAILING SOME ARTICLES OF THE PETROLEUM LAW

Pursuant to the Law on organization of Government dated 25/12/2001;

Pursuant to the Petroleum Law dated 06/07/1993; Law amending and supplementing some articles of the Petroleum Law dated 09/06/2000; Law amending and supplementing some articles of the Petroleum Law dated 03/06/2008;

At the request of the Minister of Industry and Trade,

The Government issues this Decree detailing some articles of the Petroleum Law as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details some articles of the Petroleum Law dated 06/07/1993; the Law amending and supplementing some articles of the Petroleum Law dated 09/06/2000 and the Law amending and supplementing some articles of the Petroleum Law dated 03/06/2008 (hereafter referred to as the Petroleum Law) on implementing activities related to the basic survey; bidding of oil and gas exploration and extraction project; search, exploration and development of fields and oil and gas extraction (including processing, collection, storage and transportation of oil and gas in the extraction area to the delivery place and other oil and gas service activities); clearance of fixed works, equipment and means in service of oil and gas activities in the territory of mainland, islands, internal waters, territorial sea, contiguous zone, exclusive economic zone and continental shelf under the sovereignty, sovereign rights and national jurisdiction of Vietnam defined according to the laws of Vietnam, international agreements on border and territory in which the Socialist Republic of Vietnam is a member and in line with the United Nations Convention on the Law of the Sea ​​1982.

Article 2. Subjects of application

This Decree applies to organizations or individuals carrying out or involved in the oil and gas activities.

Article 3. Interpretation of terms

In this Decree, the following terms are construed as follows:

1. Contractual area is the area defined based on search, exploration and extraction of oil and gas under the agreements in the oil and gas contract or the remaining area after return of area.

2. Bidder is the organizations or individuals or bidding partnership registering the participation in bidding for oil and gas exploration and extraction project.

3. Minimum work commitment and financial commitment are the minimal commitment workload and the minimum cost amount corresponding to minimum commitment workload that the contractors estimate and are committed to carry out in each short stage small or the whole of stage of search and exploration in oil and gas contract.

4. Delivery point is the point agreed in the oil and gas contract where the oil and gas whose ownership is transferred to the parties involved in the oil and gas contract.

5. Oil and gas contractor partnership is the combination of two organizations or individuals or more established on the basis of agreement to be involved in the bidding or competitive bidding or appointment of contractor in order to carry out the oil and gas exploration and extraction project in Vietnam.

6. Overall development plan is a general plan prepared by contractor and approved under the provisions of this Decree in order to choose the appropriate development plan (early development or entire field) taking into account the expansion development of field or area (if any) in the future.

7. Early extraction plan is the document prepared by the contractor and approved under the provisions of this Decree in order to apply appropriate technology and solution to collect information about the sheet or field or collection of information about extraction activities with the objective of optimization of field development.

8. Field development plan is the plan prepared by the contractor and approved under the provisions of this Decree in order to conduct the works construction, equipment installation and field extraction.

9. Associated gas is the gaseous hydrocarbon separated during the extraction and processing crude oil.

10. Clearance plan of fixed works, equipment and means for oil and gas activities (hereafter referred to as field clearance plan) is the document including the contents related to the technical, technological and environmental plan and solution, total expenses and clearance progress of fixed works, equipment and means for oil and gas activities.

11. Field development is the process of preparation and investment in works construction, extraction drilling and equipment installation to put the field into oil and gas extraction from the time such field is declared discovered with commercial value.

12. Proportion of oil and gas profit division is the division of revenues between the host country and the contractor in the oil and gas contract.

Article 4. Grounds for oil and gas activities

1. The Vietnamese or foreign organizations or individuals conducting the oil and gas search, exploration and extraction on the basis of oil and gas contract or other agreements signed with the Vietnam Oil and Gas Group or with the Government of the Socialist Republic of Vietnam under the provisions of the Petroleum Law, this Decree and the relevant legal documents.

2. Parent company - Vietnam Oil and Gas Group (hereafter referred to as the Vietnam Oil and Gas Group) shall conduct the oil and gas search, exploration and extraction in accordance with the provisions of this Decree.

Chapter II

BIDDING FOR OIL AND GAS EXPLORATION AND EXTRACTION

Section 1. DELIMITATION OF OIL AND GAS LOT AND FORM OF APPOINTMENT OF CONTRACTOR

Article 5. Delimitation of oil and gas lot

1. The Vietnam Oil and Gas Group shall study and prepare the list of oil and gas lots or modified list or new list of oil and gas lots to be reported to the Ministry of Industry and Trade for appraisal and submission to the Prime Minister for review and decision.

The procedure for appraisal and submission to the Prime Minister for review and approval for the oil and gas lots or modified list or new list of oil and gas lots shall comply with the provisions in Article 81 of this Decree.

2. Before the 31 of March annual, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade on the actual return of area from the contractor under the provisions of oil and gas contract and adjustment of actual area of oil and gas lots.

Article 6. Forms of contractor selection

The forms of contractor selection for implementation of oil and gas exploration and extraction project include:

1. Public bidding

2. Competitive bidding.

3. Appointment of contractor

Section 2. PUBLIC BIDDING

Article 7. Public bidding

The contractor selection in the form of public bidding is applied on the principle of international competition without prequalification. All organizations or individuals that meet the conditions specified in Article 8 of this Article may participate in the bidding

Article 8. Bidding conditions

1. The bidder must meet the following conditions:

a) If the bidder is an organization:

- Has certificate of establishment and operation issued under regulations of law of the country where the bidder is operating;

- Is not under the dissolution process, not concluded to fall into bankruptcy or to be unable to pay debts as prescribed by law;

- Is not within the time of prohibited bidding participation.

b) If the bidder is an individual:

- Has full capacity for civil acts under the regulations of law of the country of which such individual is a citizen

- Is not under the prosecution for criminal liability;

- Is not within the time of prohibited bidding participation.

c) Has full financial and technical capacity and professional experiences in the area of oil and gas exploration and extraction;

d) Has or is involved in at least 02 oil and gas exploration and extraction contracts.

2. Organizations or individuals that do not meet the conditions specified under Point d, Clause 1 of this Article and wish to participate in the oil and gas activities in Vietnam shall join the partnership with the eligible organizations or individuals to form a oil and gas contractor partnership as stipulated by this Decree. In this case, such eligible organizations or individuals shall act as representative for all parties in the oil and gas contractor partnership to participate in the bidding and shall be the operator.

Article 9. Bidding criteria

1. The bidding criteria mentioned in the bidding documents include:

a) Proportion of oil and gas profit division;

b) Minimum work commitment and minimum financial commitment;

c) Proportion of participation of the Vietnam Oil and Gas Group or its member company appointed to participate as contractor;

d) Proportion of cost recovery.

2. Based on the potential of each oil and gas lot, the Ministry of Industry and Trade shall request the Prime Minister to consider and decide to add one or other bidding criteria such as capital burden ratio for the Vietnam Oil and Gas Group or its member company appointed to participate as contractor, signature commission, commercial discovery commission, extraction commission, fees of document reference, fees of training and contribution to scientific research and oil and gas technological development fund or other similar criteria in the bidding documents.

3. Natural resource tax, corporate income tax, crude oil (including condensate) and natural gas export tax and other taxes, fees and charges to be paid under regulations of law on taxes, fees and charges announced in advance in the bidding documents.

Article 10. Bidding procedure

The bidding procedure consists of the following steps:

1. Preparation, appraisal and approval for bidding plan.

2. Invitation for bid.

3. Registration for bidding and document reference.

4. Issuance of bidding documents.

5. Receipt of bid submission document, bid opening and verification of bid submission document.

6. Appraisal, approval and notification of result of contractor selection.

7. Negotiation and completion of oil and gas contract.

8. Approval and signing of oil and gas contract.

Article 11. Preparation, appraisal and approval for bidding plan

1. The Vietnam Oil and Gas Group shall prepare the bidding plan, report it to the Ministry of Industry and Trade for appraisal and submission to the Prime Minister for consideration and decision.

2. The bidding plan consists of the following contents:

a) List of lots for bidding and preliminary assessment of oil and gas potential of each lot;

b) Time for bidding;

c) Bidding criteria;

d) Method for bid evaluation.

3. The procedure for appraisal and submission to the Prime Minister for review and approval for bidding plan shall comply with the provisions in Article 81 of this Decree;

Article 12. Public invitation for bid

1. Based on the approved bidding plan, the Vietnam Oil and Gas Group shall issue the invitation for bid. This invitation for bid is published continuously in five (05) consecutive issues in five (05) reputable newspaper published daily of which there is at least one (01) newspaper issued in English in the domestic or foreign information network in Vietnamese and English. The invitation for bid may be sent directly to the organizations and individuals interested in the bid lots.

2. The invitation for bid consists of the list of bid lots; map of area of bid lots; time for document reference and other relevant information.

Article 13. Registration for bid

1. The bidder shall send its bid registration to the Vietnam Oil and Gas Group. The time for bid registration is within 45 days from the last day of publication of invitation for bid

2. When registering the bid, the bidder must provide information briefing financial and technical capacity and expected form of oil and gas contractor partnership (if any).

3. The bidder receives the bidding documents and has the right to access documents in the list announced in the bidding documents after registering the bid.

Article 14. Bidding document

1. Based on the approved bidding plan, the Vietnam Oil and Gas Group shall prepare the bidding documents and issue them to the bidders.

2. The contents of bidding document include:

a) Criteria for bidding;

b) Requirements for financial and technical requirements and professional experience and documents related to the form of oil and gas contractor partnership (if any).

c) Method for verification of bid submission document;

d) Time for bidding process and other details of bidding procedure;

dd) Documents and basic information about the bid lots;

e) Requirements for legal documents: Certificate of operation registration, charter, financial statement of the last three (03) years of organization and identity card or passport of individuals and other relevant documents of the bidder or each party involved in oil and gas contractor partnership;

g) Instructions to the bidders;

h) Form of oil and gas contract;

i) Bid security (if any) includes the contents of form, value and duration of bid security;

k) Other contents related to the assessment of oil and gas potential of the lots (if any).

Article 15. Bid submission document

1. The bid submission document is made in one (01) original and two (02) copies in Vietnamese or English as stipulated in the bidding document.

2. The currency used in the bid submission document is in USD.

3. The bidders shall send their bid submission documents to the Vietnam Oil and Gas Group within the time limit specified in the bidding document. Based on the reality, the Vietnam Oil and Gas Group shall define the time limit for sending the bid submission document but not exceeding 120 days after the issue date of bidding document. The bid submission document is considered valid if it meets all requirements of the bidding document and is submitted within the prescribed time limit.

Article 16. Bid security

1. The bidders must submit their bid security with the bidding document.

2. In case of bid security in cash, the bidders shall be reimbursed the submitted amount when they do not win the bid or after signing the oil and gas contract.

Article 17. Bid opening

1. The bid opening must be on schedule stipulated in the bidding document.

2. The participants present at the bid opening include the representative of the Ministry of Industry and Trade, the Vietnam Oil and Gas Group and other members of group of experts. The representatives of bidders are invited to be present at the bid opening.

Article 18. Confidentiality of bid submission documents

1. The bid submission documents are managed under the regulations of law on "confidentiality” and all information in the bid submission documents during the bidding process must be kept confidential.

2. After the time of bid opening, the addition of the bidder’s documents to the bid submission document is not legally valid except in the case that the documents added is for the purpose of clarification of bid submission document as stipulated by this Decree.

Article 19. Verification of bid submission document

The Vietnam Oil and Gas Group shall verify the bid submission documents as follows:

1. The verification of bid submission documents must be based on the method for bid evaluation approved by the Prime Minister in the bidding plan. This method does not change during the bid evaluation.

2. The Vietnam Oil and Gas Group may require the bidders to clarify their bid submission documents in writing.

Within 05 working days after receiving the requirement from the Vietnam Oil and Gas Group, the bidder shall reply in writing.

The clarification of bid submission document is for explanation and not alter the main content of the bid submission document.

3. The bid evaluation is done within 20 working days after the bid opening.

4. The Vietnam Oil and Gas Group shall establish the group of experts which shall work under the regulations specified by the Vietnam Oil and Gas Group.

Article 20. Appraisal of bidding result

1. Within 15 working days after completion of bid evaluation, the Vietnam Oil and Gas Group shall submit the result of bid evaluation to the Ministry of Industry and Trade.

The documents include the following contents:

a) Bidding document;

b) Bid submission document;

c) Record of bid opening;

d) Record of bid evaluation and score sheet of bid evaluation;

dd) Documents of the Vietnam Oil and Gas Group requiring the clarification of bid submission documents and the bidders’ written reply (if any);

e) Recommendations;

g) Other documents (if any).

The Vietnam Oil and Gas Group shall submit two (02) sets of original dossier and eight (08) sets of copied dossier to the Ministry of Industry and Trade.

2. The procedure for appraisal and submission to the Prime Minister for review and approval for bidding result shall comply with the provisions specified in Article 81 of this Decree.

Article 21. Notification of bidding result

1. Within 05 working days after the approval date of bidding result from the Prime Minister, the Vietnam Oil and Gas Group shall notify the bidder of the bidding result except for special cases which shall be decided by the Prime Minister.

2. On the basis of approved bidding result, the Vietnam Oil and Gas Group shall notify the bid-winning party of the plan for negotiation of oil and gas contract.

Section 3. COMPETITIVE BIDDING, APPOINTMENT OF CONTRACTOR AND OIL AND GAS ACTIVITIES TO BE DONE BY THE VIETNAM OIL AND GAS GROUP

Article 22. Competitive bidding

1. The form of competitive bidding is applied in case the oil and gas lot is not under the approved bidding plan and has at least two (02) organizations or individuals that meet the conditions specified in Article 8 of this Decree are interested in and recommend signing the oil and gas contract.

2. The competitive bidding is done with the following steps:

a) The Vietnam Oil and Gas Group shall submit document specifying the reasons for applying the form of competitive bidding to the Ministry of Industry and Trade for review and decision within 15 working days after receiving the document from the Vietnam Oil and Gas Group;

b) Where the Ministry of Industry and Trade permits the application of form of competitive bidding, the Vietnam Oil and Gas Group shall notify the contractors that wish to participate in the bidding of the documents and time of submission of competitive bidding document.

The competitive bidding document.consists of:

- Report on financial and technical requirements and professional experience and documents related to the form of oil and gas contractor partnership (if any).

- Basic economic, technical and commercial criteria of oil and gas contract on the basis of reference of bidding criteria specified in Article 9 of this Decree;

- Requirements for legal documents: Certificate of operation registration, charter, financial statement of the last three (03) years of organization and identity card or passport of individuals and other relevant documents of the bid solicitor or each party involved in oil and gas contractor partnership;

c) The organizations or individuals must send their competitive bidding documents that consist of one (01) original and two (02) copies to the Vietnam Oil and Gas Group within the prescribed time limit.

d) Within 15 working days after the end day of submission of competitive bidding documents, the Vietnam Oil and Gas Group must finish its evaluation of competitive bidding result. The regulations on procedure for verification of bidding documents in the form of public bidding are applied for the procedure for evaluation of competitive bidding.

dd) Within 15 working days after the completion of evaluation of competitive bidding, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade on the result of competitive bidding for appraisal and submission to the Prime Minister for approval with (02) sets of original dossier and eight (08) sets of copied dossier.

The dossier includes:

- Competitive bidding documents;

- Record of competitive bidding evaluation, score sheet of competitive bidding;

- Documents of the Vietnam Oil and Gas Group requiring the clarification of competitive bidding document and the written reply of the bid solicitor (if any).

- Recommendations;

- Other documents (if any).

3. The procedure for appraisal and submission to the Prime Minister for review and approval for competitive bidding result shall comply with the provisions in Article 81 of this Decree;

4. The Vietnam Oil and Gas Group shall notify the competitive bidding result as stipulated in Article 21 of this Decree.

Article 23. Appointment of contractor

1. The Prime Minister shall decide the appointment of contractor in case the oil and gas lot has only one organization or individual or oil and gas contractor partnership that meet the conditions specified in Article 8 of this Decree, are interested in and recommend signing the oil and gas contract or in special cases relating to national sovereignty, border and island.

2. The appointment of contractor is done as follows:

a) The organizations or individuals shall send their documents to request the appointment of contractor. The documents are:

- Report on financial and technical requirements and professional experience and documents related to the form of oil and gas contractor partnership (if any).

- Basic economic, technical and commercial criteria of oil and gas contract on the basis of reference of bidding criteria specified in Article 9 of this Decree;

- Requirements for legal documents: Certificate of operation registration, charter, financial statement of the last three (03) years of organization and identity card or passport of individuals and other relevant documents of the contractors or each party involved in oil and gas contractor partnership;

b) The Vietnam Oil and Gas Group shall verify such documents and recommend the appointment of contractor to the Ministry of Industry and Trade including the contents such as the area or the lot for appointment of contractor; reasons for appointment of contractor; organizations or individuals recommended for appointment of contractor and other basic economic, technical and commercial criteria of the recommended oil and gas contract.

3. The procedure for appraisal and submission to the Prime Minister for review and approval for appointment of contractor result shall comply with the provisions specified in Article 81 of this Decree.

4. Within 05 working days after the approval date of appointment of contractor from the Prime Minister, the Vietnam Oil and Gas Group shall notify the organization or individual that is appointed as contractor of the negotiation plan for the oil and gas contract.

Article 24. Oil and gas activities done by the Vietnam Oil and Gas Group

1. Where the Vietnam Oil and Gas Group receives the transfer of the whole or a part of rights and obligations of participation from the contractor in the oil and gas contract, the Vietnam Oil and Gas Group shall coordinate with the transferor and the party involved in the contract to complete the legal document to be issued with the modified Certificate of investment registration and inherit the rights and obligations of the contractor under the provisions of the oil and gas contract, this Decree and relevant laws.

2. In case of receiving the transfer of field from the contractor, the Vietnam Oil and Gas Group or the member unit shall conduct the oil and gas activities based on the new oil and gas contract or under the decision of the Prime Minister.

3. For the investment in new oil and gas search, exploration and extraction projects:

a) The Vietnam Oil and Gas Group shall prepare documents of investment project and submit it to the Ministry of Industry and Trade for appraisal.

b) The documents of investment project consist of:

- Plan for document study, seismic explosion, drilling and other activities (if any);

- Basic economic, technical and commercial criteria applied to the project;

- Expenses and fund for investment;

- Assessment of investment efficiency;

- Other relevant documents (if any);

- Recommendations.

The Vietnam Oil and Gas Group shall submit (02) sets of original dossier and eight (08) sets of copied dossier to the Ministry of Industry and Trade.

c) The procedure for appraisal and submission to the Prime Minister for review and approval for the oil and gas search, exploration and extraction investment project shall comply with the provisions in Article 81 of this Decree.

d) During the course of implementation of oil and gas search, exploration and extraction project, in case the Vietnam Oil and Gas Group receives the request for participation in project investment of organizations or individuals that meet the conditions specified in Article 8 of this Decree, the Vietnam Oil and Gas Group shall make an agreement upon the basic economic, technical and commercial criteria with the organizations or individuals in order to submit such agreement to the Ministry of Industry and Trade as stipulated in Clause 2 and 3, Article 23 of this Decree for submission to the Prime Minister for review and decision on oil and gas contract signing policy.

After the Prime Minister has decided the oil and gas contract signing policy, the Vietnam Oil and Gas Group and the organizations or individuals mentioned above shall negotiate and sign the oil and gas contract as stipulated by this Decree and the relevant laws.

4. For the basic survey done by the Vietnam Oil and Gas Group or its member unit, the Vietnam Oil and Gas Group shall report it to the Ministry of Industry and Trade for appraisal as stipulated in Article 81 of this Decree for submission to the Prime Minister for review and approval.

Chapter III

OIL AND GAS CONTRACT

Article 25. Forms of oil and gas contract

1. The oil and gas contract shall be signed in the form of oil and gas product sharing contract or other forms upon which the Vietnam Oil and Gas Group shall agree with the contractor with the approval from the Prime Minister.

2. The oil and gas contract must comply with the sample contract issued by the Government, except for other cases decided by the Prime Minister.

Article 26. Negotiation on oil and gas contract

1. The Vietnam Oil and Gas Group is responsible for negotiation on oil and gas contract based on the result of bidding, competitive bidding or contractor appointment approved by the Prime Minister. The time for negotiation on oil and gas contract must not exceed ninety (90) days after the Vietnam Oil and Gas Group has announced the result of contractor selection.

2. If exceeding the time limit of ninety (90) days but the for negotiation on oil and gas contract has not finished, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade on the reason and request the extension time of negotiation for the Ministry of Industry and Trade to consider and decide. The extension time of negotiation shall not exceed sixty (60) days.

3. In case of exceeding the extension time of negotiation specified in Clause 2 of this Article but the contract negotiation has not finished, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for appraisal and submission to the Prime Minister for consideration and decision.

Article 27. Duration of environmental protection contract

1. Where the oil and gas only provides for the general duration irrespective of the duration for the oil and gas, such duration shall apply to both oil and gas.

2. Where the oil and gas only provides for the duration for gas but oil is discovered within the contractual area, the duration of oil and gas contract for the oil is as follows:

a) The duration of contract for oil shall not exceed twenty-five (25) years;

b) For encouraged oil and gas investment projects, the duration of contract for oil shall not exceed thirty (30) years.

3. Where the oil and gas only provides for the duration for oil but gas is discovered within the contractual area, the duration of oil and gas contract for the gas shall not exceed thirty (30) years.

4. Where the oil and gas only provides for the duration of both oil and gas, the duration of oil and gas contract is applied under the provisions in the contract.

Article 28. Stage of search and exploration

The stage of search and exploration specified in Article 17 of the Petroleum Law may be divided into phases. The duration of such phases shall be agreed by the oil and gas contractual parties.

Article 29. Extension of duration of stage of search and exploration and oil and gas contract

1. Extension of duration of stage of oil and gas search and exploration.

a) The Ministry of Industry and Trade shall consider and approve the extension of duration of stage of oil and gas search and exploration in one of the following cases:

- 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.

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

b) Within 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 document specifying the reason for extension of stage of search and exploration for submission to the Ministry of Industry and Trade;

c) Within 15 working days after receiving the written request for extension of stage of search and exploration, the Ministry of Industry and Trade shall consider and approve it.

2. Extension of duration of oil and gas contract.

a) The oil and gas contract may be extended under the provisions in Article 17 of the Petroleum Law;

b) Within one (01) year before the end of oil and gas contract, the contractor and the Vietnam Oil and Gas Group must issue document specifying the reason for extension of duration of oil and gas contract for submission to the Ministry of Industry and Trade for appraisal;

c) The procedure for appraisal and submission to the Prime Minister for review and approval for extension of duration of oil and gas contract shall comply with the provisions in Article 81 of this Decree;

Article 30. Extension of duration of stage of search and exploration in special cases

1. In special cases like the reasons for national defense, security or complex geological condition of oil and gas lots or in the deep waters or offshore or other cases decided by the Prime Minister, the stage of search and exploration shall be extended under the provisions of Clause 2, Article 17 of the Petroleum Law.

2. Within ninety (90) days before the end of stage of search and exploration, the contractor and the Vietnam Oil and Gas Group must issue document specifying the reason for extension of duration of search and exploration for submission to the Ministry of Industry and Trade for appraisal;

3. The procedure for appraisal and submission to the Prime Minister for review and approval for extension of duration of search and exploration in special cases shall comply with the provisions specified in Article 81 of this Decree.

Article 31. Retention of discovered gas area

1. Discovery of gas with commercial potential as stipulated in Article 17 of the Petroleum Law is the discovery of gas which may be extracted effectively through the preliminary quality appraisal and evaluation from the contractor.

2. The contractor and the Vietnam Oil and Gas Group shall issue document specifying the reasons and requesting to retain the discovered gas area to the Ministry of Industry and Trade for appraisal and report to the Prime Minister for consideration and decision.

3. If the time to retain the discovered gas area permitted by the Prime Minister is extended up to five (05) years but the contractor has not found the market for gas consumption or the present infrastructure does not ensure the development of discovered gas, the Prime Minister may permit the extension of additional two (02) years of the retention time of discovered gas area.

4. The procedure for appraisal and submission to the Prime Minister for review and decision on retention of discovered gas area or extension of additional two (02) years of the retention time of discovered gas area shall comply with the provisions in Article 81 of this Decree;

5. The retention time of discovered gas area is not included in the duration of oil and gas contract.

Article 32. Suspension of exercise of rights and obligations in oil and gas contract

1. Suspension in case of unforeseen circumstances

a) 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;

b) 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

2. Suspension in special cases

a) 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;

b) 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.

Article 33. Return of search and exploration area

1. The contractor shall return the search and exploration area not less than 20% area of initial contract at the end of each phase of the stage of search and exploration area or another proportion of less than 20% under the decision of the Prime Minister, except for the areas of field development and the retained areas as stipulated in Article 17 of the Petroleum Law or request to retain the area under the provisions of the oil and gas contract or other cases decided by the Prime Minister.

2. The contractor has the right to return the area at any time during the stage of search and exploration. The area which has been returned voluntarily shall be deducted from the obligation of return of area of the relevant stage. The voluntary return of area does not reduce the committed obligations to the relevant stage as well as such returned area.

3. The area to be returned must have simple geometries and facilitate the subsequent oil and gas activities.

4. The contractor are obliged to clean up the fixed works, equipment and means in service of oil and gas activities on the returned area as stipulated by this Decree and other relevant legal documents.

5. The procedure for appraisal and submission to the Prime Minister for consider the return of area with a proportion of less than 20% specified in Clause 1 of this Article shall comply with the provisions in Article 81 of this Decree.

Article 34. Work commitment and added work commitment

1. The contractor and the Vietnam Oil and Gas Group have to agree upon the details of plan to implement the minimum work commitment during the stage of search and exploration as well as the commitments to training, recruitment and technology transfer under the provisions in the oil and gas contract.

2. Where the contractor adds work commitment to the bore well or seismic explosion specified in the oil and gas contract, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade of the implementation plan.

3. Where the contractor is committed to implement the added work and minimum financial value to the such added work within the extended time of the stage of search and exploration of oil and gas contract or the extended time of retention of a part or the whole of contractual area; extension of suspension time of obligation to return the area or added work commitments for the purpose of further research which has been approved by the state competent authorities is considered as the minimum work commitment of the contract.

4. Where the contractor has finished the minimum work commitments with their costs less than the minimum financial commitments specified in the oil and gas contract, the contract is deemed to have satisfied the financial obligations of their own and are not obliged to make payment of the whole or any part of difference amount between the minimum financial commitment and the actual costs upon implementation of such minimum work commitments.

5. Where the contractor has not finished the committed work volume during the stage of search and exploration or the extended time mentioned above (if any) or where the contractor requests to terminate the oil and gas contract ahead of time, the contractor must return the amount corresponding to the unfinished minimum work commitment calculated under the minimum financial commitment within ninety (90) days after the end of such stage or the point of time of declared termination of oil and gas contract ahead of time. After the contractor has satisfied the return obligation mentioned above, it shall be released from any relevant obligation due to the failure to finish the work volume committed during the relevant stage.

6. Where the contractor requests to change the committed work commitment, the change is done as follows:

a) The change of work commitment must ensure the interests of the state and facilitate the oil and gas activities;

b) On the basis of the contractor’s written request for the change of work commitment, the Vietnam Oil and Gas Group shall submit it to the Ministry of Industry and Trade for appraisal as stipulated in Article 81 of this Decree for submission to the Prime Minister for consideration and decision;

c) The new work commitment and financial commitment approved by the Prime Minister is considers as the minimum work commitment and financial commitment of the oil and gas contract.

Article 35. Operator

1. The appointment or hiring and authorized scope of the operator are specified in the oil and gas contract or under a separate agreement.

2. The operator representing the contractor involved in the oil and gas contract shall run the activities within the authorized scope, exercise the rights and obligations under the oil and gas contract and document on appointment or hiring of operator and other regulations of law.

3. The Vietnam Oil and Gas Group has the right to require the contractor to change the operator in case the operator intends to seriously violate the law of Vietnam or there are obvious evidences that the operator has insufficient operational capacity under the provisions of the oil and gas contract. The procedure for change of operator in this case shall comply with the provisions of the oil and gas contract and other relevant agreements of the contractor.

4. Where the contractor uses the joint operating company to run the oil and gas activities, the joint operating company shall comply the following regulations:

a) The joint operating company is established to represent the oil and gas contractors and run the oil and gas activities within the authorized scope, exercise their rights and obligations under the oil and gas contract, operation agreement, charter of company and regulations of law.

b) The procedure for establishment, organizational structure, operation, rights and obligations of the joint operating company shall comply with the provisions of the Enterprise Law, Investment Law, Petroleum Law, this Decree, oil and gas contract and international oil and gas industry practices generally accepted.

c) The joint operating company is responsible for satisfying the obligations on behalf of contractor under the provisions of the oil and gas contract and contractors’ other agreements and under regulations of law before termination of operation.

5. The Ministry of Industry and Trade shall coordinate within the Ministry of Planning and Investment to guide the implementation of this Article;

Article 36. Executive Office

1. The operator has to establish an executive office in Vietnam within 90 days or another time limit agreed by the Vietnam Oil and Gas Group with the contractor from the effective date of the Certificate of Investment or the modified Certificate of investment registration. The executive office shall exercise its rights and obligations within the authorized scope, operation agreement and regulations of law. The operator may use one executive office in Vietnam for operation or management in his/her capacity as contractor for one or many oil and gas projects in Vietnam (if any).

2. Authority and procedure for establishment of executive office

a) The operator sends three (03) sets of dossiers to register the establishment of executive office to the Department of Planning and Investment where the executive office is located.

b) The dossier includes:

- Registration of establishment of executive office signed by the operator’s competent representative;

- Certified copy of Certificate of investment registration;

- Appointment decision or hiring contract for executive office manager of the operator;

- Certified copy of identity card of passport of executive office manager.

c) Within 15 working days after fully receiving the dossier, the Department of Planning and Investment shall review and issue the Certificate of executive office establishment registration.

The operational duration of the executive office depends on the validity of the Certificate of Investment or the modified Certificate of investment registration, except for the case of extension but not exceeding three (03) years.

The Department of Planning and Investment shall send a copy of Certificate of executive office establishment registration to the Ministry of Industry and Trade, Ministry of Planning and Investment, Ministry of Finance and Ministry of Justice respectively.

3. The executive office has its own seal, opens its own accounts, recruits employees and signs contracts to carry out the oil and gas contracts and other activities as prescribed by law.

4. In case of termination of operation of the executive office, the operator shall send three (03) sets of dossier to request the termination of operation of executive office to the Department of Planning and Investment where the operation of executive is located.

a) The dossier includes:

- Notice of termination of operation of executive office signed by the operator’s competent representative.

- List of employees and their current corresponding interests.

- Seal and certificate of seal sample (if any);

- Certification of taxation authorities about the executive office’s satisfaction of tax obligation and closing of tax code;

- Certificate of executive office establishment registration (the original).

b) Within 10 working days from the date of receipt of complete dossiers, the Department of Planning and Investment shall review them and issue a written notice to delete the name of the executive office and send it to the operator, the Ministry of Industry and Trade, Ministry of Planning and investment, Ministry of Finance, Ministry of Justice, Vietnam Oil and Gas Group and tax authorities.

5. In case of change of address of manager of executive office, the operator shall send a notice to the Department of Planning and Investment and go through the procedures for change of address or manager of executive office with the tax authorities.

6. The executive office must satisfy its obligations as prescribed by the law of Vietnam before termination of its operation.

Article 37. Procedure for appraisal of oil and gas contract and issue of Certificate of investment registration

1. The dossier for appraisal of oil and gas contract includes:

a) The written request for appraisal of oil and gas contract from the Vietnam Oil and Gas Group;

b) The economic and technical explanation prepared by the Vietnam Oil and Gas Group;

c) The certified Certificate of operation registration of organization; the identity card or passport of investor as individual involved in oil and gas contract;

d) Letter of guarantee for exercise of contract obligations of the contractor or each contractor in the contractor partnership issued by a reputable international bank or by the parent company of the contractors or each contractor in the contractor partnership and approved by the Vietnam Oil and Gas Group.

dd) Draft of oil and gas contract;

e) Company charter, financial statement (if any) and other relevant legal documents as a basis for negotiation on oil and gas contract.

The Vietnam Oil and Gas Group shall submit (02) sets of original dossier and eight (08) sets of copied dossier to the Ministry of Industry and Trade.

2. The procedure for appraisal and submission to the Prime Minister for review and approval for oil and gas contract shall comply with the provisions specified in Article 81 of this Decree.

3. On the basis of approval of the Prime Minister for the draft of oil and gas contract, the Vietnam Oil and Gas Group and the contractor shall sign the oil and gas contract.

4. Within 10 working days after receiving the signed original oil and gas contract submitted by the Vietnam Oil and Gas Group, the Ministry of Industry and Trade shall review and issue the Certificate of investment registration.

Article 38. Procedure for appraisal and transfer of rights and obligations in oil and gas contract and issuance of modified Certificate of investment registration

1. The transfer of rights and obligations in oil and gas contract shall comply with the provisions in Article 24 of the Petroleum Law and the oil and gas contract. In case of reasons of security and national defense, after receiving the contractor’s request for the transfer of interests of participation in the oil and gas contract, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade on the list, preliminary assessment of organizations or individuals wishing to receive such transfer.

Within 15 working days after receiving the document from the Vietnam Oil and Gas Group, the Ministry of Industry and Trade shall review and make decision.

2. The dossier for appraisal and transfer of interests and obligation in the oil and gas contract includes:

a) The written request for appraisal from the Vietnam Oil and Gas Group on the transfer of contractor’s rights and obligations in the oil and gas contract;

b) The certified Certificate of operation registration, company charter and financial statement of the last year of organization; identity card or passport of investor as individual receiving the transfer of interests of participation in the oil and gas contract;

c) The contract for transfer rights and obligations in oil and gas contract in which there is commitment to the exercise of obligation of transfer tax of the relevant parties and other relevant obligations as prescribed by the law of Vietnam;

d) Agreement upon modification of oil and gas contract;

dd) Guarantee of exercise of contract obligation of the contractor receiving the transfer of participation interests in oil and gas contract issued by a reputable international bank or by the parent company of the contractor or in the other forms of guarantee as required by the Vietnam Oil and Gas Group.

e) The tax declaration and explanation of transferred tax done by the transferor.

The Vietnam Oil and Gas Group shall submit (02) sets of original dossier and eight (08) sets of copied dossier to the Ministry of Industry and Trade.

3. The procedure for appraisal and submission to the Prime Minister for review and approval for the transfer of rights and obligations in the oil and gas contract shall comply with the provisions in Article 81 of this Decree;

4. Within 10 working days after receiving the approval from the Prime Minister for the transfer of rights and obligation in the oil and gas contract, the Ministry of Industry and Trade shall issue the modified Certificate of investment registration.

Article 39. Modification of Certificate of investment registration

1. Where the contractor carries out the merger, consolidation, division, separation, renaming or change of company nationality or in other forms that change the contractor’s basic information recorded in the Certificate of investment registration or in the oil and gas contract, except for cases specified in Clause 4 of this Article and Article 40, the contractor has to go through the procedure for modification registration of Certificate of investment registration.

2. Where the changes in Clause 1 of this Article have generated the taxable income, the contractor must declare and pay the taxes in accordance with the law of Vietnam and international agreements of which Vietnam is a member.

3. Authority and procedure for issuance of modified Certificate of investment registration

a) Within twelve (12) months after the changes specified in Clause 1 of this Article, the contractor shall coordinate with the Vietnam Oil and Gas Group to submit one (01) set of dossier to the Ministry of Industry and Trade for review and issue of modified Certificate of investment registration;

b) The dossier for modification of Certificate of investment registration includes:

- The written request for issuance of modified Certificate of investment registration (state the reasons) of the Vietnam Oil and Gas Group and the contractor;

- The original or copy certified by the competent authorities certifying the legal change related to the above- mentioned contractor;

- Agreement upon change of oil and gas contract;

- The tax declaration and explanation of tax payable (applicable to cases specified in Clause 2 of this Article).

c) Within 15 working days after fully receiving dossier for issuance of modified Certificate of investment registration, the Ministry of Industry and Trade shall verify it and issue the modified Certificate of investment registration.

4. Within three (03) months after the contractor has changed its address or legal representative, the contractor must send a written notice to the Ministry of Industry and Trade, the Vietnam Oil and Gas Group and the relevant contractors in the oil and gas contract.

Within 15 working days after receiving document concerning the change of address or legal representative, the Ministry of Industry of Trade shall review and issue document recording the contractor’s changes.

Article 40. Change of contractor’s owner holding interests of participation in oil and gas contract in Vietnam

1. Within six (06) months after the change of contractor’s owner holding interests of participation in oil and gas contract in Vietnam, the contractor must report to the Ministry of Industry and Trade and the Vietnam Oil and Gas Group on such change of owner.

The reporting dossier includes:

a) Brief report on the change of contractor’s owner;

b) Certification of change of contractor’s owner;

c) Where the contractor’s parent company has issued the letter of guarantee to implement the contractor’s oil and gas contract, the contractor must provide new letter of guarantee of the new owner to the contractor and must get the approval from the Vietnam Oil and Gas Group.

2. In case of change of contractor’s owner holding interests of participation in oil and gas contract in Vietnam with generation of taxable income, the contractor shall declare and pay taxes on behalf of owner for the generated income related to the oil and gas contract in Vietnam as prescribed by the laws of Vietnam and and international agreements of which Vietnam is a member.

Article 41. Termination of right to participate in oil and gas contract of each contract in case of violation of obligations under the provisions of the oil and gas

1. The contractors or each contractor involved in the oil and gas contract may be terminated the right to participate in the oil and gas contract upon serious violation of basic obligations under the provisions of oil and gas contract and general operation agreement (if any).

2. Within three (03) months after the contractor was terminated the right to participate in the oil and gas contract upon serious violation of basic obligations under the provisions of oil and gas contract and general operation agreement (if any), the remaining contractors in the oil and gas contract shall agree to receive the participation part of the contractor that has been terminated the right to participate in the oil and gas contract corresponding to the participation proportion or under separate agreement in coordination with the Vietnam Oil and Gas Group to complete the agreement to receive the participation interests and submit it to the Prime Minister for review and approval.

3. Where the remaining contractors in the oil and gas contract or no third party receives the participation interests of the contractor whose right to participate in the oil and gas contract, the oil and gas contract shall be invalidated and the remaining contractors involved in the oil and gas contract must terminate the oil and gas contract under the provisions, this Decree and other relevant laws.

Article 42. Termination of oil and gas contract due to the contractor’s serious violation of contract obligations

Where the contractor seriously violates the basic obligations specified in the oil and gas contract, the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade for consideration and submission to the Prime Minister for decision.

Article 43. Termination of oil and gas contract

1. Cases of termination of oil and gas contract include:

a) The duration of oil and gas contract is over but the Prime Minister does not approve the extension;

b) The contractor terminates the oil and gas contract as prescribed in the oil and gas contract.

c) In cases specified in Clause 3, Article 41 of this Decree;

d) The oil and gas contract is terminated as stipulated in 42 of this Decree;

dd) The oil and gas contract is terminated due to other agreements (if any) by the Vietnam Oil and Gas Group.

2. The termination of oil and gas contract specified under Point a, b and dd, Clause 1 of this Article, the contractor must do the following things:

a) Within six (06) months after the end or termination of the oil and gas contract, the contractor must fulfill all obligations under the provisions of the oil and gas contract and is certified in writing by the Vietnam Oil and Gas Group on the fulfillment of obligations;

b) The Vietnam Oil and Gas Group shall submit (02) sets of original dossier and eight (02) sets of copied dossier to the Ministry of Industry and Trade concerning the termination of oil and gas contract.

The dossier includes:

- The written request for termination of oil and gas contract of the Vietnam Oil and Gas Group and the contractor;

- The commitment of contractors or each contractor in the contractor partnership or the contractor’s parent company to the obligations that may be generated under contract but have not been fulfilled. In this case, the contractor or each contractor in the contractor partnership or the contractor’s parent company shall fulfill such obligations within twenty-four (24) months after the Ministry of Industry and Trade issues the decision on termination of oil and gas contract.

c) Within 15 working days after fully receiving dossier for termination of oil and gas contract, the Ministry of Industry and Trade shall review it and approve the termination of oil and gas contract.

d) Within 15 working days after the Ministry of Industry and Trade approves the termination of oil and gas contract, the contractor shall return the original copies of Certificate of investment registration and the modified Certificate of investment registration.

dd) After receiving the written approval for the termination of oil and gas contract from the Ministry of Industry and Trade, the contractor must fulfill all obligations concerning the tax, labour, salary, termination of operation of executive office (if any), joint operating company (if any) and other obligations as prescribed by law.

Chapter IV

IMPLEMENTATION OF OIL AND GAS ACTIVITIES

Article 44. Program of activities and annual budget

The contractor shall prepare the program of activities and annual budget as per each stage consistent with the commitments in the oil and gas contract about the duration, content of activities, finance and personnel employment program and send them to the Vietnam Oil and Gas Group for approval under the provisions of the oil and gas contract.

Article 45. Applicable technical regulations and standards

1. The contractor must apply the technical regulations and standards of Vietnam and international standards recognized for application in Vietnam on relevant safety, environmental protection, techniques and technologies.

2. In case of no technical regulations and standards of Vietnam or international standards recognized for application in Vietnam on relevant safety, environmental protection, techniques and technologies, the organizations or individuals carrying out the oil and gas activities may apply the international oil and gas industry practices generally accepted.

Article 46. Requirements for environmental protection

Organizations or individuals conducting the oil and gas activities related to the environmental protection as follows:

1. Implement the environmental management and monitoring and environmental protection of the oil and gas search, exploration and extraction and to take measures to prevent and respond to environmental incidents as prescribed by law on environmental protection of Vietnam and the agreement to which Vietnam is a member.

2. Restrict to a minimum the impacts to affect or lead to negative consequences for the environment such as pollution of soil, water, forests, air or causing damage to flora and fauna, ecological imbalance or adversely affecting people's living environment.

3. Prepare and submit for appraisal and approval the reports on environmental impact assessment as prescribed by law on environmental protection.

4. Comply with the regulations of law on environmental protection.

Article 47. Requirements for oil and gas safety

Organizations or individuals conducting the oil and gas search, exploration and extraction must do the safety activities as follows:

1. Establish the safety areas and maintain the safety signs for oil and gas works, machine and equipment as follows:

a) The minimum distance from the safety areas for offshore oil and gas works is five hundred meter (500m) outwards from the outermost edge of the works to all directions or from the anchoring position of floating means, mobile works, except for the special cases decided by the Prime Minister

b) Within two (02) nautical miles from the outermost edge of the oil and gas works (including underground works under the seabed), all vehicles and ships must not anchor or conduct activities under the seabed. Within the safety area, the unauthorized persons must not intrude, except for special cases accepted by the contractor or decided by the Prime Minister.

 c) The safety areas around the equipment and works in service of oil and gas search, exploration and extraction on land specified by the Ministry of Industry and Trade, depending on the geographical and social conditions of the place of oil and gas activities.

2. It is prohibited to build works or drop floating means or establish the safety belt around the works or facility where there is risk of obstructing the maritime navigation routes recognized as essential for international navigation and failure to comply with the regulations of law on management of sea ports and maritime channels.

3. Before conducting the oil and gas search, exploration and extraction, the contractor must prepare and submit the following documents to the competent state authorities for approval as prescribed by law:

a) Before conducting the oil and gas search and exploration activities in the field.

- The safety management and risk assessment program together with measures to restrict incidents and damages.

- The urgent response plan for incidents including technical measures and use of means and equipment for incident remedy.

b) Before development of oil and gas field

- Report on environmental impact assessment;

- The safety management and risk assessment program together with measures to restrict incidents and damages.

- The urgent response plan for incidents including technical measures and use of means and equipment for incident remedy.

4. Establish the safety management system and take the measures to ensure the safety under the approved safety management program.

5. Update data and complete the report on risk assessment and report on implementation of urgent response plan as prescribed by law.

6. Record all incidents and accidents that have occurred.

7. Give urgent notice and immediately take remedial measures in case of accidents or incidents as prescribed by law.

8. Take measures to ensure the labor safety and fire prevention and fighting as prescribed by law.

Article 48. Compensation responsiblity

Organizations or individuals conducting the oil and gas activities shall take responsibility before law for damages to people, assets and environment, including the cleaning and restoration of environment from the harmful effects of oil and gas activities.

Article 49. Requirements for natural resource conservation

Organizations or individuals conducting the oil and gas activities must comply with the regulations on natural resource conservation and oil and gas natural resources and oil and gas extraction.

Article 50. Provisions on geophysical exploration

When conducting the geophysical exploration (gravity, magnetic, electricity, seismic explosion and other similar or related activities), in addition to the compliance with the law of Vietnam, the organizations or individuals must comply with the following provisions:

1. Notify the area and time for geophysical exploration to the competent authorities and the People’s Committee of provinces and centrally-run cities to promptly notify the owners of vehicles, ships and boats navigating across the area of activities at sea.

2. Notify the People’s Committee of provinces and centrally-run cities, People’s Committee of communes and people in the area of geophysical exploration on land of the safe area and time and establish a safety area for the areas and points of geophysical exploration.

3. In special cases related to the confidentiality, security, sovereignty and sovereign rights, the organizations or individuals conducting the geophysical exploration must comply with the decisions of the competent organs.

4. Guide the owners of vehicles, ships and boats and people to comply with the regulations on safety during the geophysical exploration.

5. Carry out the geophysical exploration under the plan, area and line network approved by the Vietnam Oil and Gas Group.

6. The documents collected during the geophysical exploration must be submitted to the Vietnam Oil and Gas Group for retention, storage and use.

7. The contractor may use such documents for oil and gas activities.

Article 51. Regulations during the drilling

During the drilling, the organizations or individuals must comply with the following regulations:

1. Drill by design or approved changed design.

2. It is prohibited to drill outside the area of oil and gas contract except in cases approved by the Vietnam Oil and Gas Group and the contractor involved in the oil and gas contract of the adjacent lot.

3. Keep all documents and samples collected while drilling and hand them over to the Vietnam Oil and Gas Group under the provisions of this Decree and the oil and gas contract.

4. Promptly notify the Vietnam Oil and Gas Group of the other natural resources discovered while drilling.

5. Protect the environment while drilling.

6. Comply with the other relevant laws.

Article 52. Provisions on oil and gas extraction

Organizations or individuals performing the oil and gas extraction must comply with the provisions on extraction of oil and gas resources; comply with the contents of oil and gas field development plan of oil and gas field or early development plan of oil and gas field approved; apply the advanced technical and equipment methods in order to optimize the oil and gas recovery but not harm the earth, ecological environment and mine safety.

Article 53. Right to use equipment and means

The Government of Vietnam has the right to use the works, equipment and means for oil and gas activities, including pipelines and storage under the management and utilization by the contractor without obstructing the oil and gas activities or increasing the cost of contractor or the Government shall pay all costs generated from the utilization of the works, equipment and means for oil and gas activities.

Article 54. Oil and gas insurance

1. Organizations or individuals conducting oil and gas activities must buy the insurance for the works, equipment and means for oil and gas activities, insurance for environmental damage compensation liability, third-party civil liability insurance, personal insurance and other insurance as prescribed by the law of Vietnam and international oil and gas industry practices generally accepted.

2. Organizations or individuals conducting oil and gas activities are encouraged to buy insurance from the qualified insurance company and experience in the oil and gas area in accordance with the Law on Insurance Business and international agreements of which Vietnam is a member.

Article 55. Information provision

1. The contractor must provide all information, data and reports on oil and gas activities as prescribed by law.

2. The competent state authorities have the right to require the contractors to provide all information and reports in case of necessity and in accordance with the state management functions as prescribed by law.

Article 56. Information security

1. The report and information on security, national sovereignty over sea and island or other statements and information should be kept confidential in accordance with the law and the oil and gas contract.

2. Organizations or individuals conducting the oil and gas activities may use and keep in Vietnam the original documents, samples and reports; are permitted to temporarily export and re-import such documents and samples for study and assess under the regulations of law and oil and gas contract.

Article 57. Provision of oil and gas services, commodity procurement and contractor selection

1. Organizations or individuals conducting the oil and gas activities have the right to sign contract for provision of oil and gas services, commodity procurement with the sub-contractor or other organizations or individuals for the oil and gas activities.

2. The signing of contract for provision of oil and gas services, commodity procurement directly related to the oil and gas activities is done in accordance with the provisions of the oil and gas contract and the following principles:

a) To ensure the investment efficiency of the project, openness and transparency during the process of contractor selection and contract signing.

b) To consist with the characteristics of oil and gas industry in search, exploration and development of field and oil and gas extraction;

c) To use the oil and gas services and commodities which the Vietnamese organizations or individuals are able to provide on the principle of ensuring competition on price, quality and progress.

Article 58. Benefits to employees

The contractor must ensure all rights of employees, develop labor rules, salary scale system, regulations on salary, bonus and allowance payment and other regulations as prescribed by law on labor and in accordance with the international oil and gas industry practices generally accepted.

Article 59. Recruitment and signing of labor contract

1. The foreign organizations or individuals conducting the oil and gas search, exploration, exploration and field development must prioritize the employment of Vietnamese employees, may recruit foreign employees to work in Vietnam as prescribed by law on labor and must have the plan for training and recruitment of Vietnamese employees in lieu of foreigners.

2. The foreign organizations or individuals conducting the oil and gas activities may directly select and sign labor contract as prescribed by law.

3. The contractor must prepare the annual staffing schedule and recruitment and training plan.

Article 60. Provisions on account opening and foreign currency purchase

1. The contractors and the operators as foreign organizations or individuals have the right to open account in foreign currency and foreign currency purchase to meet the needs of current transactions and other permitted transactions; may keep in Vietnam or transfer to foreign country their income in foreign currency from the sale of oil and gas owned by the contractor, their profits and other legal incomes earned during the oil and gas activities under the provisions of oil and gas contract and law on management of foreign exchange.

2. The contractors and the operators may sign the foreign currency derivative contract to prevent the risk of exchange rate with the credit institutions that are permitted to provide the foreign exchange services.

Article 61. Support for foreign currency balance

1. Based on the policies on management of foreign exchange and capacity for foreign currency balance in each period, the Prime Minister shall consider and decide to support the foreign currency balance for oil and gas activities of the contractors for the shortage of foreign currency after the contractors and the operators have repurchased the credit institutions or branches of foreign banks that are permitted to do business of foreign currency in Vietnam but not exceeding the amount of Vietnam dong earned by the contractor from the oil and gas activities in Vietnam or from the sale of oil and gas owned by the contractor in Vietnamese market after deducting the financial obligations and other operational costs in Vietnam dong.

2. The conversion of Vietnam dong into the freely convertible foreign currencies is done according to the selling rate of foreign currency of the credit institutions permitted for announcement at the time of conversion.

Article 62. Obligation to sell crude oil and natural gas in Vietnamese market

1. Obligation to sell crude oil in Vietnamese market

a) As required by the Government of Vietnam, the contractors are obliged to sell a part or the whole of crude oil owned by the contractor in Vietnamese market;

b) The crude oil required by the Government of Vietnam to each contractor to be sold in Vietnamese market is defined by the percentage (%) between the crude oil owned by such contractor and the total crude oil owned by all contractors carrying out the oil and gas extraction in Vietnam;

c) The selling price of crude oil as required by the Government of Vietnam is the international competitive selling price.

2. Obligations to sell natural gas in Vietnamese market

As required by the Government of Vietnam, the contracts are obliged to sell a part or the whole of natural gas owned by such contractors based on the agreements in the gas development and extraction.

3. The Government shall make compensation for direct and rational costs the contractor has to incur due to breach of contract signed with a third party to satisfy the requirements of the Government as provided for in Clause 1 and 2 of this Article. The contractor is obliged to provide all evidences related to the compensation requirements. In any case, the value of compensation shall not exceed the rate of penalty due to breach of contract (if any) that the contractor shall incur with the third party.

Chapter V

FIELD RESERVE AND DEVELOPMENT

Article 63. Activities to be done after oil and gas discovery

1. Within sixty (60) days after oil and gas discovery, the contractor must send a notice of such discovery to the Ministry of Industry and Trade and the Vietnam Oil and Gas Group.

Within one hundred and thirty (130) days after the above notice, the contractor must send the quality appraisal plan (if any) for approval. The Vietnam Oil and Gas Group shall review and approve the above-mentioned quality appraisal plan within 30 days after receiving it from the contractor.

2. Within 90 days or another duration approved by the Ministry of Industry and Trade after the completion of above-mentioned quality appraisal plan, the contractor shall submit the general report on oil and gas reserve in place of detection with quality appraisal to the Ministry of Industry and Trade and the Vietnam Oil and Gas Group.

3. Where the result of quality appraisal shows that the discovery is commercial, the contractor shall send a written notice to the Ministry of Industry and Trade and the Vietnam Oil and Gas Group of the commercial discovery statement.

Article 64. Procedure for submission, appraisal and approval for oil and gas reserve

1. Within ninety (90) days after the commercial discovery statement, the contractor and the Vietnam Oil and Gas Group shall submit the report on oil and gas reserve and dossier for report on oil and gas reserve to the Ministry of Industry and Trade and the Board of oil and gas reserve report appraisal.

2. Dossier for report on oil and gas reserve:

a) Document of report on oil and gas reserve from the Vietnam Oil and Gas Group and the contractor;

b) Reserve report includes the contents as prescribed by law (02 sets);

c) Summary of reserve report in Vietnamese and language used to sign the oil and gas contract (25 copies);

d) Other relevant documents.

3. Within 30 days after fully receiving the dossier, the Ministry of Industry and Trade and the Board of oil and gas reserve report appraisal shall make appraisal and request the Prime Minister to review and approve the report on oil and gas reserve.

The establishment and regulations on operation of the Board of oil and gas reserve report appraisal shall be decided by the Prime Minister.

Article 65. Re-calculation of oil and gas reserve

During the exploration, additional quality appraisal, development and extraction of oil and gas, if there is change of oil and gas reserve, the contractor must register for modification of reserve with the Vietnam Oil and Gas Group. If the oil and gas reserve change with the difference greater than 15% compared with the latest approval, the contractor must make a report on re-calculation of oil and gas reserve and submit it for approval as stipulated in Article 64 of this Decree and other relevant legal documents.

Article 66. Discovery of oil and gas with commercial potential beyond the contractual area

1. In case of discovery of oil and gas with commercial potential is beyond the area of oil and gas contract to the area of lot whose oil and gas contract has not been signed, the contractor and the Vietnam Oil and Gas Group shall send document stating the reasons for expansion of contractual area to the Ministry of Industry and Trade for submission to the Prime Minister for consideration and decision.

2. The procedure for appraisal and submission to the Prime Minister for consider and decide the expansion of contractual area because of discovery of oil and gas with commercial potential is beyond the area of oil and gas contract shall comply with the provisions in Article 81 of this Decree.

Article 67. Field consolidation or joint development

1. In case of field consolidation or joint development

a) In case the oil and gas discovery with commercial potential of contractual area reaches the area of one or other lots whose oil and gas contract have been signed, the Vietnam Oil and Gas Group and the contractors in the relevant contractual areas shall negotiate and agree to consolidate the field for quality appraisal and joint development of such oil and gas discovery (if the result of quality appraisal shows the commercial discovery).

b) For the fields with marginal oil and gas reserve or at the adjacent lots or fields with economic inefficiency upon independent development and the joint development shall be more effective, the contractors need to jointly develop such fields or oil and gas discovery.

2. The time to complete the field consolidation agreements or joint development for the Vietnam Oil and Gas Group and the contractors to submits them to the Prime Minister for approval shall not exceed eighteen (18) months or another time limit approved by the Ministry of Industry and Trade after the report on reserve assessment of relevant oil and gas discovery has been approved by the Prime Minister. The oil and gas activities in the consolidated area shall be adjusted by the consolidation agreement and the corresponding oil and gas contracts.

3. Where the contractors involved in the oil and gas contract or the contractors involved in joint oil and gas contracts cannot reach to an agreement on consolidation of field or joint development, the separate extraction becomes economic inefficiency and the competent authorities have not approved the field development plan, the contractors must return such area like the area without commercial discovery.

4. The procedure for appraisal and submission of field consolidation or joint development to the Prime Minister

a) The Vietnam Oil and Gas Group shall submit (02) sets of original dossier and eight (08) sets of copied dossier to the Ministry of Industry and Trade concerning the field consolidation or joint development.

The dossier includes:

- The written request for field consolidation or joint development from the contractor and the Vietnam Oil and Gas Group;

- Agreement on field consolidation or joint development

- Other relevant documents (if any).

b)

The procedure for appraisal and submission to the Prime Minister for consider and decide the field consolidation or joint development shall comply with the provisions in Article 81 of this Decree.

5. In case the oil and gas discovery with commercial potential of contractual area reaches the area of adjacent lot which is managed by another country, the contractor shall coordinate with the Vietnam Oil and Gas Group to send a document specifying the reasons and handling plan to the Ministry of Industry and Trade.

Within 45 days after receiving such document, the Ministry of Industry and Trade shall coordinate with the Ministries and sectors to prepare the plan and report to the Prime Minister for consideration and decision.

Article 68. Procedure for submission, appraisal and approval of general plan for field development

1. Within eight (08) months or another time limit approved by the Ministry of Industry and Trade after the report on oil and gas reserve has been approved, the contractor and the Vietnam Oil and Gas Group shall submit the general plan for field development to the Ministry of Industry and Trade

2. The dossier for submission of general plan for field development includes:

a) Document for submission of general plan for field development of the contractor and the Vietnam Oil and Gas Group;

b) General plan for field development (02) sets;

c) Summary of general plan for field development in Vietnamese and language used to sign the oil and gas contract (25 copies);

d) Other relevant copies;

3. The Ministry of Industry and Trade shall coordinate with the relevant Ministries and sectors to establish the Board of general plan for field development appraisal.

Within 30 days after fully receiving the dossier, the Ministry of Industry and Trade shall appraise and approve the general plan for field development.

4. In case of necessity, the contractor can submit the modified general plan for field development. The procedure for submission and approval of modified general plan for field development shall comply with the provisions of this Article.

5. The Ministry of Industry and Trade shall provide detailed instructions on implementation of this Article.

Article 69. Procedure for submission, appraisal and approval of early extraction plan

1. The contractor shall recommend the early extraction plan in the following cases:

a) The available information does not allow the identification of rational extraction plan according to the international oil and gas industry practices generally accepted but it is necessary to collect and add data based on monitoring of actual extraction of field, product layer and sheet;

b) The proportion of reserve level P1/2P shall not be lower than 40%, except for special cases decided by the Ministry of Industry and Trade.

2. Authority and procedure for approval of early extraction plan

a) Within twelve (12) months after the general plan for field development has been approved, the contractor shall make the early extraction plan and shall coordinate with the Vietnam Oil and Gas Group to submit it to the Ministry of Industry and Trade for review and approval.

b) Dossier for submission of early extraction plan include:

- The document for submission of early extraction plan of the Vietnam Oil and Gas Group and the contractor;

- The early extraction plan including the contents as prescribed by law (02 sets);

- Summary of early extraction plan in Vietnamese and language used to sign the oil and gas contract (25 copies);

- Other relevant documents.

3. The Ministry of Industry and Trade shall coordinate with the relevant Ministries and sectors to establish the Board of early extraction plan appraisal.

Within 30 days after fully receiving the dossier, the Ministry of Industry and Trade shall appraise and approve the early extraction plan.

4. The contractor shall send the annual action program under the provisions of the oil and gas contract to implement the work items in the approved early extraction plan.

5. Every quarter, the contractor shall report to the Ministry of Industry and Trade and the Vietnam Oil and Gas Group on the implementation of work items in the early extraction plan with the relevant documents.

6. When completing the early extraction plan, the contractor shall send the following report to the Ministry of Industry and Trade:

a) Assessment of implementation result of early extraction plan and updating of extraction model with evidencing data and analysis;

b) Conclusion of applicability of the testing diagram for entire field extraction.

7. The contractor must ensure the implementation of early extraction plan does not prejudice the effective recovery of oil and gas upon development of entire field.

8. The duration for early extraction shall not exceed three (03) years from the time of the first commercial production line, except for cases where the Ministry of Industry and Trade shall consider and extend the duration for early extraction in accordance with the reality of implementation of early extraction plan based on the recommendation of the Vietnam Oil and Gas Group and the contractor.

9. Within six (06) months before the expiration of the above time limit, the contractor and the Vietnam Oil and Gas Group shall submit the field development plan as stipulated by this Decree.

10. The Ministry of Industry and Trade shall provide detailed instructions on implementation of this Article.

Article 70. Procedure, appraisal and approval of field development plan

1. The field development plan is made based on the approved general plan for oil and gas field development or the updating result of the early extraction plan in order to achieve the effective development and oil and gas extraction.

2. Within eighteen (18) months after the general plan has been approved or within six (06) months before the end of the early extraction plan, the contractor and the Vietnam Oil and Gas Group shall report to the Ministry of Industry and Trade and the Board of oil and gas field development plan appraisal for appraisal and submission to the Prime Minister for review and approval.

3. Dossier for submission of field development plan includes:

a) The document for submission of field development plan of the Vietnam Oil and Gas Group and the contractor;

b) The field development plan including the contents as prescribed by law (02 sets)

c) Summary of field development plan in Vietnamese and language used to sign the oil and gas contract (25 copies);

d) Other relevant documents.

4. Within 30 days after fully receiving the dossier, the Ministry of Industry and Trade and the Board of oil and gas field development plan appraisal shall make appraisal and submit to the Prime Minister for review and approval.

The establishment and regulations on operation of the Board of oil and gas field development plan appraisal shall be decided by the Prime Minister.

Article 71. Implementation of oil and gas field development plan

1. The contractor shall submit the annual action plan to the Vietnam Oil and Gas Group as stipulated in the oil and gas contract to implement the work items in the approved field development plan.

2. Every quarter, the contractor shall report to the Ministry of Industry and Trade and the Vietnam Oil and Gas Group on the plan to implement the work items in the oil and gas field development plan and other relevant documents.

3. During the field development, if in need of drilling for additional quality appraisal in addition to the approved oil and gas development plan, the contractor and the Vietnam Oil and Gas Group shall request the consideration and decision in writing from the Ministry of Industry and Trade.

Within 15 working days after receiving the above document, the Ministry of Industry and Trade shall review and reply to the Vietnam Oil and Gas Group.

4. After the field development plan has been approved, if the contractor does not conduct the field development and oil and gas extraction according to the time limit specified in the approved document, the Ministry of Industry and Trade has the right to recover the field.

5. The Ministry of Industry and Trade shall provide detailed instructions on implementation of this Article.

Article 72. Modification and addition of early extraction plan and mine development plan

1. The contractor shall go through the procedure for modification and addition of approved early extraction plan and oil and gas field development plan in one of the cases as follows:

a) The change of investment rate of over 10% compared with the approved total investment rate; change or generation of existing basic equipment items of the field; implementation of testing program or other extraction programs at the sheet or field with the approved oil and gas field development plan or early extraction plan.

b) The extraction activities or new geological information shows that it is necessary to change the extraction and development plan in order to achieve the highest overall efficiency;

c) The increase in oil and gas recovery coefficient towards achieving higher economic efficiency by applying new methods or technology.

2. Within six (06) months or another time limit approved by the Ministry of Industry and Trade after the change specified in Clause 1 of this Article, the contractor shall make the oil and gas field development plan (to be applied to the submission of modified field development plan), the early extraction plan and the oil and gas field development plan and coordinate with the Vietnam Oil and Gas Group to submit them to the Ministry of Industry and Trade and the Board of oil and gas field development plan appraisal.

The procedure for submission, appraisal and approval of modification and addition of the early extraction plan and the oil and gas field development plan is like the procedure for approval of the early extraction plan and the initial oil and gas field development plan as stipulated in this Decree.

3. During the process of field development and extraction, if the potential reserve of the added area is confirmed, the contractor shall make the additional development plan for such areas and coordinate with the Vietnam Oil and Gas Group to submit it to the Ministry of Industry and Trade for review and approval (to be applied to the early extraction plan) or report to the Ministry of Industry and Trade and the state Board of oil and gas field development plan for appraisal and submission to the Prime Minister for approval (to be applied to the field development plan) as stipulated by this Decree.

Article 73. Use of associated gas

1. The contract may use the associated gas extracted within the contractual area for oil and gas activities at the field or pump it back to the field.

2. In case of extraction of associated gas for the commercial purposes, the contractor is obliged to pay taxes and divide the proportion to the gas under the provisions of oil and gas contract and relevant laws.

3. The Government of Vietnam has the right to use without payment the associated gas which the contractor intends to burn it if such utilization does not obstruct the oil and gas activities and the contractor must create conditions for such work to be done smoothly.

Article 74. Use of oil and gas for extraction activities

During the process of oil and gas extraction, the contractor may use the oil and gas extracted from the contractual area for the extraction activities as per the necessary norm and in accordance with the international oil and gas industry practices generally accepted.

Article 75. Gas burning and release

1. Except for the cases where the burning of associated gas is approved by the Ministry of Industry and Trade, the contractor must collect the associated gas during the process of oil and gas extraction. The contractor must make the associated gas collection plan and demonstrate it in the early extraction plan or the field development plan.

2. The contractors only burn and release the associated gas in the following cases:

a) During the process of sheet testing with the flow and volume not greater than the flow and volume necessary to be released for well unclogging and cleaning.

b) Periodically burning the residual gas collected from the processing system without economical collection and such burning does not cause any safety hazard; burning in emergency circumstances such as the compressor or other equipment is broken down but not exceeding 48 hours; burning upon periodical maintenance, check and testing;

c) In case of emergency, the contractor may temporarily release gas if unable to burn it but not exceeding 24 hours and must burn gas through the safety valve and take safety measures for people. Means and equipment under operation at the field.

d) The gas burning for the sheet testing or after the completion, repair or processing of well with estimated duration over 48 hours shall be approved by the Vietnam Oil and Gas Group.

dd) Burning or release of gas from well to relieve pressure.

3. For cases not subject to the Clause 2 of this Article, the contractor and the Vietnam Oil and Gas Group shall send document to the Ministry of Industry and Trade for review and approval within 15 working days after receiving such document.

Article 76. Periodical report

During the oil and gas extraction, the contractor must submit the quarterly and annual reports to the Ministry of Industry and Trade and the Vietnam Oil and Gas Group on the extracted output, composition, extracted oil and gas proportion of each field, extraction subject; volume of oil and gas used for search, exploration and extraction, lost or burnt volume of oil and gas; incremental investment of each field; recovery of costs of each field and contractor.

Chapter VI

CLEARANCE OF FIXED WORKS, EQUIPMENT AND MEANS IN SERVICE OF OIL AND GAS ACTIVITIES

Article 77. Field clearance obligations

1. The contractor is obliged to clean up the field as stipulated in this Decree and other relevant legal documents.

2. The contractor must make plan for clearance and appropriate fund for clearance of fixed works, equipment and means in service of oil and gas activities as prescribed by law and submit it to the Ministry of Industry and Trade for review and approval.

3. The contractor must clean up the field under the plan approved by the Ministry of Industry and Trade. At the request of organizations or individuals and approved by the Ministry of Industry and Trade or as required by the Ministry of Industry and Trade, the organizations or individuals may not clean up the whole or each part of fixed works, equipment and means in service of oil and gas activities.

4. During the oil and gas activities, organizations or individuals must conduct the clearance of each part or the whole of fixed works, equipment and means that are broken down heavily or seriously downgraded affecting the safety and efficiency of oil and gas activities.

5. The field clearance must ensure the requirements for underground protection, restoration of ecological environment state, traffic safety and other resources of sea.

6. Monitoring of environment and geological stability of bore wells.

7. The costs of field clearance are calculated in the costs of recovered oil and gas.

Article 78. Field clearance fund

1. The financial obligation assurance for the field clearance must be done by the method of fund establishment.

2. For the financial obligation assurance for the field clearance as stipulated in this Article, if there are other agreements in the signed oil and gas contracts on the measures to ensure the field clearance compared with the provisions in this Decree, the contractor shall do the field clearance under the agreements in such oil and gas contracts.

3. Within one (01) year after the first day of commercial extraction, the organizations or individuals must establish their field clearance funds.

4. The field clearance fund shall be appropriated annually. The rate of fund appropriation of each organization or individual is in proportion to the participation part of such organization or individual in the oil and gas contract and is included in the recovery cost.

5. The value of disposal of assets such as fixed works, equipment and means in service of oil and gas activities obtained during the clearance is addressed as follows:

a) Where the fixed works, equipment and means in service of oil and gas activities whose costs have been recovered, the disposal amount obtained the field clearance shall be owned by the State of Vietnam as stipulated by the oil and gas contract.

b) Where the fixed works, equipment and means in service of oil and gas activities whose costs have not been recovered, the disposal amount obtained the field clearance shall be owned by the contractor.

Article 79. Modification and settlement of field clearance fund

1. Within one (01) year before the end of oil and gas contract or duration of oil and gas extraction as stipulated in the early extraction plan or the field development plan approved by the competent authorities, the contractor must re-assess the field clearance fund based on the re-assessment of total costs of field clearance and the extracted output within the framework of oil and gas contract and the recoverable reserve at this point of time.

2. Where the balance of field clearance fund does not meet the needs necessary for field clearance, within six (06) months before the end of oil and gas contract or duration of oil and gas extraction, each contractor must make additional contribution to the fund in proportion to the participation interests in the oil and gas contract.

3. Where the balance of field clearance fund is greater the needs necessary for field clearance, the difference after the fulfillment of financial obligations to the State as stipulated in the oil and gas contract and other relevant laws shall be reallocated to the contractors as follows:

a) A part of difference in proportion to interest of oil and gas of the contractor involved in the contract if such difference whose costs have been recovered and each contractor shall receive the part divided in proportion to the participation interest in the oil and gas contract;

b) The total difference in case the difference whose costs have not been recovered and each contractor shall receive the part divided in proportion to the participation interest in the oil and gas contract;

Article 80. Management and use of field clearance fund

1. The management of field clearance fund shall be done by the Vietnam Oil and Gas Group.

2. During the time the field clearance fund has not been used, the Vietnam Oil and Gas Group shall deposit the money amount of financial obligation assurance fund in an interest-bearing account at a credit institution in Vietnam with its highest credit rating as ranked by the State Bank of Vietnam. The Vietnam Oil and Gas Group shall take responsibility for risks related to the field clearance fund. The interest generated annually after fulfillment of financial obligations to the State shall be included in such field clearance fund.

3. The field clearance fund is used for the purpose of field clearance. The contractor may use the money amount in this fund to fulfill the obligations of field clearance under the approved field clearance plan.

Where the contractor cannot carry out the field clearance based on under the approved field clearance plan because the Vietnam Oil and Gas Group is unable to return the field clearance fund, the contractor shall be freed from the obligation to clear up the field in proportion to the unrecoverable part and the Vietnam Oil and Gas Group is responsible for the clearance of such uncleared part of field.

4. Where the contractor shall not have to clear up or do clear up only a part of fixed works, equipment and means as stipulated in Clause 3, Article 77 of this Decree, the field clearance fund is still under the management of the Vietnam Oil and Gas Group and is directly used for field clearance upon the end of operation of field. In this case, the Vietnam Oil and Gas Group shall coordinate with the contractor to define the field clearance fund at the point of time of receipt of right to use the fund and the contractor shall make deduction for the missing fund. After this point of time, the contractor shall be freed from obligations to the whole or a part of fixed works, equipment and means that have not been cleared up and the missing deduction (if any).

Chapter VII

STATE MANAGEMENT OVER OIL AND GAS ACTIVITIES

Article 81. Procedure for appraisal and submission of issues under the decision authority of the Prime Minister

1. The appraisal form through the collection of written opinion

a) Within 05 working days after fully receiving dossier or written request, the Ministry of Industry and Trade shall send such dossier to the relevant Ministries and sectors.

b) Within 15 working days after receiving the written opinion enclosed with the dossier of the Ministry of Industry and Trade, the Ministries and sectors shall send their written opinions to the Ministry of Industry and Trade. When the above time limit is over without any written opinion from this organ, it is deemed to have agreed with the contents of the dossier for opinions.

c) Within 45 days after fully receiving dossier or written request, the Ministry of Industry and Trade shall complete its appraisal and submit it to the Prime Minister for review and approval.

2. The form of appraisal through the appraisal Board

a) In case of necessity, the Prime Minister shall decide to assign the Ministry of Industry and Trade to establish the Board to implement the appraisal of issues under the decision authority of the Prime Minister specified in this Decree and report to the Prime Minister for review and decision.

b) The structure of the Board includes: The leadership of the Ministry of Industry and Trade is the Chairman and the leadership of the Ministries and sectors are the members.

c) The Board may establish the work assistance expert Group. The structure, power, duty and operational fund of this Group shall be decided by the Chairman of the Board.

Article 82. Responsibility of the Ministry of Industry and Trade

1. The Ministry of Industry and Trade shall take responsibility before the Government for the state management over the oil and gas activities and perform the state management under the authority specified in the Petroleum Law, this Decree and the relevant legal documents.

2. The Ministry of Industry and Trade shall direct and guide the Vietnam Oil and Gas Group to perform its duties specified in Articles 5, 11, 14, 17, 19, 22, 23, 24, 26 and other duties in accordance with the provisions of this Decree.

Article 83. Responsibility of the Ministries, the ministerial-level organs and the People’s Committee of provinces and centrally-run cities

1. The Ministry of Finance shall detail the implementation of regulations related to tax specified in this Decree and the relevant laws.

2. The Ministries and ministerial-level organs within their duties and powers shall perform their state management over the oil and gas activities as prescribed by law.

3. The People’s Committee of provinces and centrally-run cities within their duties and powers shall perform their state management over the oil and gas activities at the localities as prescribed by law.

Article 84. Responsibility of the Vietnam Oil and Gas Group

1. Makes reports to the Ministry of Industry and Trade

a) The annual and long-term schemes and plans for oil and gas activities;

b) The quarterly and annual general reports on the implementation and result of oil and gas activities of each oil and gas contract; the reality of implementation of field development and extraction of each field in each oil and gas contract;

c) Reports on arising incidents while conducting the oil and gas activities.

2. Makes reports as required by the competent state organs.

Article 85. Inspection and examination of oil and gas activities

1. The organizations or individuals conducting the oil and gas activities must be subject to the inspection and examination of the competent authorities as prescribed by this Decree and other relevant legal documents.

2. The inspection and examination of oil and gas activities must be done in accordance with the functions, authority and regulations of law on inspection and examination.

Chapter VIII

IMPLEMENTATION PROVISION

Article 86. Effect

This Decree shall take effect from 01/12/2015 and supersede Decree No. 48/2000/ND-CP dated 12/09/2000 of the Government detailing the implementation of the Petroleum Law, Decree No. 34/2001/ND-CP dated 06/07/2001 of the Government on issuing the Regulation on bidding of oil and gas search, exploration and extractions projects, Decree No. 115/2009/ND-CP dated 24/12/2009 of the Government on amendment and addition of some articles of Decree No. 48/2000/ND-CP detailing the implementation of the Petroleum Law and the Regulation on bidding of oil and gas search, exploration and extractions projects issued with Decree No. 34/2001/ND-CP.

Article 87. Responsibility for implementation

1. The Ministry of Industry and Trade is responsible for guiding and monitoring the implementation of this Decree.

2. The Ministers, Heads of ministerial-level organs, Heads of governmental organs and Chairman of People's Committees of provinces and centrally-run cities are liable to execute this Decree. /.