Chapter III.
PETROLEUM CONTRACTS
Article 15. Petroleum contracts shall be signed in form of production-sharing contract, joint-venture contract or other forms.
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.
Article 16. Organizations and individuals wishing to sign petroleum contracts must go through biddings or other forms prescribed by the Vietnamese Government. They must clearly explain their financial capabilities, technical levels and professional experiences in petroleum activities.
Article 17. The term of a petroleum contract shall not exceed twenty five (25) years, of which the prospection and exploration duration shall not exceed five (5) years.
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.
Article 18. The prospection and exploration area for a petroleum contract shall not exceed 2 lots (two lots)
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
Article 19. Contractors must return the prospection and exploration areas according to regulations of the Vietnamese Government.
Article 20. Contractors and Vietnam Petroleum Corporation must agree in the petroleum contracts on the work schedules and commitments to minimum financial investment in the prospection and exploration period.
Article 21. Immediately after the discovery of petroleum, contractors and Vietnam Petroleum Corporation must report and provide all necessary information on the discovery of petroleum to competent State management agencies.
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.
Article 22. The languages used for petroleum contracts signed with foreign organizations or individuals and the documents enclosed with the contracts must be the Vietnamese and a common foreign language agreed upon by Vietnam Petroleum Corporation and such foreign organizations or individuals. The Vietnamese-language and the foreign-language copies shall have the equal value.
Article 23. Petroleum contracts shall take effect after they are approved by the Vietnamese Government.
Article 24. The partial or full transfers of petroleum contracts by contractual parties shall take effect only after they are approved by the Vietnamese Government.
Vietnam Petroleum Corporation shall have the priority right to repurchase the partially or fully transferred contracts.
Article 25. Vietnam Petroleum Corporation may contribute capital to petroleum contracts. The percentage and time for capital contribution, the reimbursement of expenses for contractors and the agreement on administration shall be prescribed in the petroleum contracts in accordance with international practices in the petroleum industry.
Article 26. The contractors may sign petroleum service contracts but must prioritize the signing of such contracts with Vietnamese organizations or individuals.
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.
Article 27. Disputes arising from petroleum contracts must be settled first of all through negotiations and conciliation.
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.
Tìm kiếm
Luật dầu khí 1993 (Bản Word)