Tiếng Việt- 1 Decree No. 95/2015/ND-CP dated 16 October 2015, detailing some articles of the Petroleum Law
- 2 Decree No.97/2013/ND-CP of August 27, 2013, providing for the sanctioning of administrative violations in the domains of petroleum, petrol and oil trading, and liquefied petroleum gas trading
- 3 Decree No. 115/2009/ND-CP of December 24, 2009, amending and supplementing a number of articles of the Government''s Decree no. 48/2000/ ND-CP detailing the petroleum law and the regulation on bidding for petroleum survey, exploration and exploitation promulgated together with decree no. 34/2001/ND-CP
- 4 Decree of Government No. 145/2006/ND-CP of November 30, 2006 providing for the sanctioning of administrative violations in the petroleum domain
- 5 Decree No. 34/2001/ND-CP of July 06, 2001, promulgating the regulation on bidding for oil and gas prospection, exploration and exploitation projects.
- 6 Decree of Government No. 48/2000/ND-CP of September 12, 2000 detailing the implementation of The Petroleum Law
- 7 Decree No. 84-CP of December 17, 1996, of the Government detailing the implementation of the Petroleum Law
- 1 Law No. 35/2018/QH14 dated November 20, 2018 amendments to some articles concerning planning of 37 Laws
- 2 Law No. 10/2008/QH12 of June 03, 2008, amending and suppplementing a number of article of the Petroleum Law.
- 3 Law No. 45/2005/QH11 of June 14, 2005, on import tax and export.
- 4 Law No.19/2000/QH10, amending and supplementing a number of articles of the Petroleum Law, passed by the National Assembly
| THE STANDING COMMITTEE OF NATIONAL ASSEMBLY | SOCIALIST REPUBLIC OF VIET NAM |
| No. 18-L/CTN | Hanoi, July 6, 1993 |
In order to efficiently protect, exploit and use the petroleum resources for developing the national economy, expanding cooperation with foreign countries;
Pursuant to Articles 17, 29 and 84 of the 1992 Constitution of the Socialist Republic of Vietnam;
This Law prescribes activities of petroleum prospection, exploration and exploitation within the territory, exclusive economic zone and continental shelf of the Socialist Republic of Vietnam.
The Vietnamese State protects the ownership rights of Vietnamese and foreign organizations and individuals conducting petroleum activities in Vietnam over their investment capital, assets and other legitimate interests.
Article 3. In this Law, the following terms and phrases shall be construed as follows:
1. “Petroleum” means crude oil, natural gas and hydrocarbon in gaseous, liquid, solid or semi-solid form in the natural state, including sulphur and the like accompanying hydrocarbon, but excluding coal, agrillaceous rock, bitum or other minerals, from which oil can be extracted.
2. “Crude oil” means hydrocarbon in liquid form in natural status, asphalt, ozokerite and liquid hydrocarbon obtained from natural gas by method of condensation or extraction.
3. “Natural” gas means the entire hydrocarbon in gaseous form, exploited from drilling wells, including wet gas, dry gas, drilling-well head gas and remaining gas after extraction of liquid hydrocarbon from wet gas.
4. “Petroleum activities” mean activities of prospecting, exploring, developing fields of, and exploiting petroleum, including activities in direct service of these activities.
5. “Petroleum contracts” mean documents signed between Vietnam Petroleum Corporation and organizations or individuals for conducting petroleum activities.
6. “Petroleum services” mean activities related to petroleum prospection, exploration, field development and exploitation, which are conducted by subcontractors.
7. “Lot” means an area delimited with geographical coordinates and determined for petroleum prospection, exploration and exploitation.
8. “Contractors” mean Vietnamese or foreign organizations, individuals, that are permitted to conduct petroleum activities on the basis of petroleum contracts.
9. “Subcontractors” mean Vietnamese or foreign organizations, individuals, that sign contracts with contractors or petroleum joint-venture enterprises for provision of petroleum services.
10. “Petroleum joint-venture enterprises” mean joint-venture enterprises set up on the basis of petroleum contracts or on the basis of agreements signed between the Vietnamese Government and foreign governments.
Article 7. Organizations and individuals conducting petroleum activities must buy insurance for means and facilities in service of petroleum activities, environmental insurance and other insurances as provided for by Vietnamese law, in accordance with international practices in petroleum industry.
Article 8. The prospection and exploration area for a petroleum contract shall be determined on the basis of lots delimited by the Vietnamese Government.
Where petroleum activities have been licensed but are banned or temporarily banned, the Vietnamese Government shall satisfactorily settle damage caused to organizations and/or individuals by such bans or temporary bans.
The above-said fixed works and equipment shall belong to the Vietnamese State’s ownership from the time agreed upon by parties to petroleum contracts.
The petroleum contracts must comply with the model contract promulgated by the Vietnamese Government, comprising the following principal contents:
1. The legal status of organizations, individuals participating in the contracts;
2. The contractual objects;
3. The area limits and schedule for return of contractual areas;
4. The contractual term;
5. Conditions for termination of contracts ahead of time or for prolongation of contractual term;
6. Commitments on work schedules and financial investment;
7. Rights and obligations of the contractual parties;
8. The recovery of investment capital, the profit determination and division; the host country’s rights over fixed assets upon capital reimbursement and contract termination;
9. Conditions for transfer of rights and obligations of contractual parties; Vietnam Petroleum Corporation’s right to contribute investment capital;
10. Commitment to training and prioritized use of Vietnamese labor and services;
11. Responsibility to protect environment and ensure safety while conducting petroleum activities;
12. Procedures for settlement of disputes arising from contracts.
Apart from the provisions in the model contract, the contractual parties may agree on other terms, which are not contrary to this Law and Vietnamese legislation.
The term of petroleum contracts for deep-water, offshore areas and the term of contracts on natural gas prospection, exploration and exploitation shall not exceed thirty (30) years, of which the prospection and exploration duration shall not exceed seven (7) years.
The terms of petroleum contracts may be prolonged but for not more than five (5) years and the propection and exploration duration may be prolonged but for not more than one (1) year, at the requests of contractors and the prolongation must be decided by the Vietnamese Government.
Petroleum contracts may terminate ahead of time provided that the contractors must fulfill all committed obligations and such termination must be agreed upon by the contractual parties.
In special cases, the Vietnamese Government may permit the prospection and exploration area of more than 2 lots (two lots) for a petroleum contract, which, however, must not exceed
If deeming that the discovered petroleum is of commercial value, the contractors must immediately realize the program for reserve appraisal, make reports on deposits, field development and exploitation charts and submit them to the competent State management agencies for approval.
Vietnam Petroleum Corporation shall have the priority right to repurchase the partially or fully transferred contracts.
Vietnam may undertake flight services by itself or sign joint-venture contracts with foreign countries for the provision of flight services in service of petroleum activities.
In cases where the disputing parties cannot reconcile with one another, their disputes shall be settled under the provisions of Vietnamese laws if the disputing parties are Vietnamese organizations and/or individuals; or under the provisions of the Law on Foreign Investment in Vietnam if they are foreign organizations and/or individuals.
RIGHTS AND OBLIGATIONS OF CONTRACTORS
Article 28. The contractors shall have the following rights:
1. To enjoy preferences and guarantees as provided for by Vietnamese law;
2. To use gathered specimen, data and information for petroleum activities;
3. To recruit laborers for performance of jobs under petroleum contracts on the basis of prioritizing the recruitment of Vietnamese laborers;
4. To hire subcontractors in accordance with the provisions of this Law and international practices in the petroleum industry;
5. To be exempt from import tax on equipment and supplies necessary for petroleum activities and be exempt from re-export tax when the imported equipment are not installed at fixed places or when the supplies are not used up according to the provisions of Vietnamese laws;
6. To own their petroleum shares after fulfilling the financial obligations towards the Vietnamese State;
7. To export their petroleum shares as agreed upon in the petroleum contracts.
8. To recover investment capital as agreed upon in the petroleum contracts;
9. The contractors being foreign organizations and individuals may transfer their investment capital and profits earned in the process of petroleum activities abroad according to the provisions of the Law on Foreign Investment in Vietnam.
The subcontractors being foreign organizations and individuals may also enjoy the rights prescribed at Point 9, Article 28 of this Law.
Article 30. The contractors shall have the following obligations:
1. To comply with the Vietnamese law;
2. To fulfill the commitments inscribed in the petroleum contracts;
3. To pay assorted taxes, fees according to the provisions of Vietnamese laws;
4. To transfer technologies, to train, employ Vietnamese cadres and workers and ensure the laborers’ interests;
5. To apply measures for environmental protection;
6. To report on their petroleum activities to competent State management bodies and Vietnam Petroleum Corporation;
7. To supply documents for inspection teams;
8. To clear the works and remove equipment and means upon termination of petroleum activities at the requests of competent State management agencies;
9. To sell on the Vietnamese market part of the petroleum under their respective ownership when so requested by the Vietnamese Government.
Article 32. Petroleum-exploiting organizations and individuals must pay natural resource tax.
The natural resource tax shall be calculated on the actually exploited output in the tax payment period for each petroleum contract.
The natural resource tax rates prescribed for crude oil shall range from six percent (6%) to twenty five percent (25%) or higher in special cases.
The natural resource tax rates prescribed for natural gas shall range from zero percent (0%) to ten percent (10%).
The Vietnamese Government shall prescribe the specific tax rates within the above-mentioned tax rate brackets, depending on the geographical, economic and technical conditions of oil fields and crude oil or natural gas output.
In special cases, organizations and individuals conducting activities of petroleum prospection, exploration and exploitation may enjoy income tax exemption or reduction. The income tax exemption or reduction shall be provided for by the Vietnamese Government.
The subcontractors being foreign organizations or individuals and registering their operations in Vietnam shall have to pay income tax according to the provisions of the Law on Foreign Investment in Vietnam.
The subcontractors being foreign organizations or individuals that fail to register their operations in Vietnam shall have to pay tax according to the provisions of Vietnamese laws.
Foreign organizations and individuals conducting petroleum activities shall have to pay tax on transfer of profits overseas according to the provisions of the Law on Foreign Investment in Vietnam.
STATE MANAGEMENT OVER PETROLEUM ACTIVITIES
Article 38. The State management over petroleum activities shall cover the following contents:
1. Deciding on strategies, plannings, plans and policies for development of the petroleum industry;
2. Promulgating normative documents on management of petroleum activities;
3. Examining, inspecting and supervising petroleum activities;
4. Deciding on delimitation and adjustment of lots or areas for petroleum prospection, exploration and exploitation;
5. Deciding on undertakings and forms of cooperation with foreign countries;
6. Approving petroleum contracts;
7. Deciding on policies to promote or limit petroleum export in order to ensure the State’s interests, taking into account the contractors’ interests;
8. Directing, guiding and examining branches and localities in their activities related to petroleum activities;
9. Settling matters related to the rights to conduct petroleum activities, handle violations of this Law.
The petroleum-State management agencies shall be set up under the Law on Organization of the Government to perform the function of State management over petroleum activities.
The ministries and other State agencies shall perform the function of State management over petroleum activities according to their respective tasks and powers.
INSPECTION OF PETROLEUM ACTIVITIES
When conducting inspection of petroleum activities, the inspection teams shall have the powers:
1. To request relevant organizations and individuals to supply documents and give answers on matters necessary for the inspection;
2. To apply measures of technical examination on the field;
3. To suspend or propose competent State agencies to suspend petroleum activities threatening to cause accidents or serious loss of human lives, property or petroleum resources and environmental pollution;
4. To handle according to competence or propose competent State agencies to handle violations.
Organizations and individuals are entitled to complain about decisions of the inspection teams according to the provisions of Vietnamese laws.
Violating individuals who commit criminal acts shall be examined for penal liability according to the provisions of Vietnamese law.
Article 47. This Law and other law provisions of Vietnam shall also apply to:
1. Works, means, equipment in service of petroleum activities in the exclusive economic zone and continental shelf of the Socialist Republic of Vietnam;
2. Works, means and equipment of Vietnamese organizations and/or individuals in service of petroleum activities on the basis of cooperation with foreign countries in regions falling beyond the jurisdiction of the Socialist Republic of Vietnam.
Article 50. The previous provisions contrary to this Law are hereby all annulled.
The Vietnamese Government shall detail the implementation of this Law.
Article 51. This Law takes effect as from September 1, 1993.
This Law was passed on July 6, 1993 by the IXth National Assembly of the Socialist Republic of Vietnam, at its Third Session./.
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| NATIONAL ASSEMBLY |
- 1 Decree No. 95/2015/ND-CP dated 16 October 2015, detailing some articles of the Petroleum Law
- 2 Decree No.97/2013/ND-CP of August 27, 2013, providing for the sanctioning of administrative violations in the domains of petroleum, petrol and oil trading, and liquefied petroleum gas trading
- 3 Decree No. 115/2009/ND-CP of December 24, 2009, amending and supplementing a number of articles of the Government''s Decree no. 48/2000/ ND-CP detailing the petroleum law and the regulation on bidding for petroleum survey, exploration and exploitation promulgated together with decree no. 34/2001/ND-CP
- 4 Decree of Government No. 145/2006/ND-CP of November 30, 2006 providing for the sanctioning of administrative violations in the petroleum domain
- 5 Decree No. 34/2001/ND-CP of July 06, 2001, promulgating the regulation on bidding for oil and gas prospection, exploration and exploitation projects.
- 6 Decree of Government No. 48/2000/ND-CP of September 12, 2000 detailing the implementation of The Petroleum Law
- 7 Decree No. 84-CP of December 17, 1996, of the Government detailing the implementation of the Petroleum Law
- 8 1992 Constitution of the Socialist Republic of Vietnam