Oil industry: revision of the law for sustainable development

Prompt and comprehensive amendment of the Oil and Gas Law in accordance with Vietnam’s energy development strategy as well as international practices will be an important lever to help this sector develop sustainably, while enhancing its important contribution to the national economy.

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The comments were made during the recent seminar “Revision of the Oil and Gas Law to Promote the Development of the Oil and Gas Industry” held recently in Vung Tau City, Bà Ria-Vung Tau Province (South ).

During the seminar, participants said that during nearly 30 years of development, the oil and gas industry has made an important contribution to the country’s economic development and ensured energy security. However, the Oil and Gas Law enacted in 1993 revealed many shortcomings in the production of oil and gas and in the attractiveness of foreign investment in this sector.

Deputy General Manager of the National Gas-Oil Group (PVN), Do Chi Thanh, suggested that delegates advise on preferential policies to restore the attractiveness of the investment environment in the oil and gas sector as well as realizing the rights and obligations of state management agencies.

Vietnam Oil and Gas Association Chairman Nguyên Quoc Thâp said the new Oil and Gas Law implies that priorities should be applied to amended oil and gas contracts so that investors can change contract details. in case of risk.

Deputy General Manager of PetroVietnam Exploration Production Corporation (PVEP), Hoàng Ngoc Trung, proposed that this new Oil and Gas Law would focus on clarifying and detailing investment procedures in oil and gas projects, investment attraction policies, and appropriate financial mechanisms to deal with risks.

In addition, the new law is expected to introduce new regulations on oil and gas contracts, without limiting contract models to attract more investors. Additionally, with oil and gas contracts that are about to expire but still have development potential, the new law is expected to add detailed regulations on investments to maintain production.

Preferential policies

Seminar “Revision of Oil and Gas Law to Promote Development of Oil and Gas Industry” in Vung Tau.

Photo: Bnews/CVN

Once enacted, the new Oil and Gas Law will be an important driving force, a necessary legal corridor for the PVEP to immediately roll out five new oil and gas contracts and increase reserves to serve oil and gas exploitation, asserted its deputy general manager.

Phan Duc Hiêu, a permanent member of the Economic Commission of the National Assembly, proposed that the new Oil and Gas Law should complete the institutional framework of basic research and exploration, drilling, exploration, discovery and up to exploitation. In addition, it must be compatible with other existing laws, creating a chain of legal procedures to save time and costs.

In addition, the new law should include competitive, long-term and flexible preferential policies based on harmonizing benefits and accessibility to each specific project, he said.

Phan Duc Hiêu also mentioned that the Law Compilation Committee of the National Assembly has added a chapter on basic investigation in the oil and gas industry.

Under this chapter, the State will encourage relevant organizations and individuals to participate in basic investigative activities of the oil and gas industry. He noted that essential investigations into the oil and gas industry carry many risks. Consequently, it must adopt more specific regulations.

The new Oil and Gas Bill will be submitted to the National Assembly Standing Committee in August and is expected to be approved by the National Assembly next October.

Year Year/CVN