Chapter V
PETROLEUM OPERATIONS
Article 42. Onshore field development projects; field development project with a uniform chain of onshore and offshore petroleum installations and equipment
1. During the process of preparing an outline field development plan (ODP), if it is deemed necessary to build a uniform chain of onshore and offshore installations and equipment apart from the initial contract area serving exploitation, handling and transport of petroleum for manufacturing commercial petroleum products in order to improve the economic efficiency of the field development project, PVN shall submit a report on the guidelines for implementation of the field development project with a uniform chain of onshore and offshore petroleum installations and equipment to the Ministry of Industry and Trade of Vietnam for appraisal and submit it to the Prime Minister for approval.
2. The repurposing of forests and land (if any) of an onshore field development project or a field development project with a uniform chain of onshore and offshore petroleum installations and equipment shall be showed as follows:
a) The National Assembly shall decide on guidelines for the repurposing of forests and land for the onshore field development project before the outline field development plan (ODP) is approved according to the regulations in Clause 1 Article 46 hereof and for the field development project with a uniform chain of onshore and offshore petroleum installations and equipment before the Prime Minister approves the guidelines for implementation of the project according to the regulations in Clause 1 of this Article in case that the projects require the repurposing of land of national parks, nature reserves, landscape protection zones, forests serving researches and scientific experiments, special-use forests, watershed protection forests, or border protection forests of at least 50 hectares; land for wet rice cultivation with at least 02 crops of at least 500 hectares; protective forests for preventing wind and blocking sand and protective forests for breaking waves and blocking sea encroachment of at least 500 hectares; production forests of at least 1.000 hectares;
b) Except the case prescribed in Point a of this Clause, for the onshore field development project, the Prime Minister shall decide on guidelines for the repurposing of forests and land before the outline field development plan (ODP) is approved according to the regulations in Clause 1 Article 46 hereof; for the field development project with a uniform chain of onshore and offshore petroleum installations and equipment, the Prime Minister shall decide on the guidelines for the repurposing of forests and land as well as approve the implementation of the project as prescribed in the regulations in Clause 1 of this Article;
c) After the decision of the competent authorities on the guidelines for the repurposing of forests and land and is taken and the outline field development plan (ODP) is approved, the Provincial People’s Committee shall decide on the repurposing of forests and land for the projects to develop petroleum fields.
3. The Government shall issue regulations on documents and procedures for implementation of Clause 1, Point b and Point c Clause 2 of this Article and documents to be submitted to the National Assembly prescribed in Point a Clause 2 of this Article.
Article 43. Preparation of and approval for operating programs and annual operating budgets (AOBs)
1. On the basis of the obligations stated in petroleum contracts and programs and plans which are approved (if any), contractors shall prepare operating programs and annual operating budgets (AOBs) to be submitted to PVN for approval thereof.
2. The main contents of an operating program and AOB include:
a) Operating contents;
b) Cost estimates;
c) Plans for using human resources.
Article 44. Development, appraisal of and approval for programs of hydrocarbon exploration
1. During the period of hydrocarbon exploration, on the basis of regulations stated in petroleum contracts, contractors shall develop programs of hydrocarbon exploration to be submitted to PVN for appraisal and approval thereof.
2. The main contents of a program of hydrocarbon exploration include:
a) Overall of the petroleum contract;
b) History of exploration, quantification and extraction of petroleum (if any);
c) Materials on geology, geophysics, documentation of drilling, survey and other researches;
d) Characteristics of petroleum geology, petroleum system, petroleum resource assessment system;
dd) Implementation schedule, workload, cost estimate;
e) Plan for implementation of safety and environmental protection, including safety and incident handling and solutions to prevent and handle pollution risks;
g) Expected results, hydrocarbon exploration risks;
h) Conclusion and recommendation.
3. The contents of the appraisal of the program of hydrocarbon exploration include:
a) Assessment of the suitability of the materials on geology, geophysics, documentation of drilling, survey and other researches;
b) Assessment of the reasonableness of data on the characteristics of petroleum geology, petroleum system, petroleum resource assessment system;
c) Assessment of the feasibility and reasonableness of the implementation schedule, workload, cost estimate;
d) Assessment of the satisfaction of the safety and environmental protection requirements;
dd) Evaluation of the expected results achieved and hydrocarbon exploration risks.
4. In case there is a change of the main contents of the program of hydrocarbon exploration prescribed in Clause 2 of this Article, the contractor shall propose adjustment of the program and submit it to PVN for appraisal and approval.
5. During the process of oil and gas field development, petroleum extraction, the contractor may propose additional hydrocarbon exploration and develop the additional hydrocarbon exploration program, and submit it to PVN for appraisal and approval according to the regulations in Clause 2 and Clause 3 of this Article.
Article 45. Preparation, appraisal of and approval for oil and gas resources and reserves
1. In case of discovery of commercial hydrocarbons according to in a petroleum contract area from the results of exploration and quantification of petroleum, the contractor shall make and submit a report on oil and gas resources and reserves to PVN, which will submit a report to the Ministry of Industry and Trade for appraisal and approval.
2. The main contents of the report on oil and gas resources and reserves include:
a) History of exploration, quantification and extraction of petroleum;
b) Documentation of seismic surveys and other geophysical exploration methods; documentation of drilling, survey and other researches;
c) Regional geology and field geology;
d) Reservoir parameters include geological formation of oil and gas reservoirs, well logging, field technology, results of extraction and force pump of oil, gas and water (if any);
D) Calculation of oil initially in place (OIIP) and oil and gas reserves of discovered petroleum and petroleum fields;
e) Conclusion and recommendation.
3. The contents of the appraisal of the report on oil and gas resources and reserves include:
a) Assessment of the results of exploration and quantification of petroleum;
b) Rationality of geology, reservoir models, reservoir parameters and field technology;
c) Rationality and reliability of the results of the calculation of oil initially in place (OIIP) and oil and gas reserves.
4. PVN is responsible for monitoring and summarizing oil and gas resources and reserves of petroleum fields in the territory of Vietnam and annually updating information about oil and gas resources and reserves and submitting a report to the Ministry of Industry and Trade.
5. The contractor is responsible for updating reports on the oil and gas resource and reserve of each field during 03 years from the date on which the first oil and gas flow enters into commercial production and then periodically updating them for every 05 years. In case there is a change of more than 15% in the total oil initially in place (OIIP) compared to the latest approval, the contractor shall prepare an up-to-date report on oil and gas resources and reserves and submit it to PVN, which will submit a report to the Ministry of Industry and Trade for consideration and approval according to the regulations of this Article.
6. The Government shall issue regulations on documents and procedures for submission, appraisal and approval of the report on oil and gas resources and reserves.
Article 46. Preparation, appraisal of and approval for outline field development plans (ODPs)
1. After the report on oil and gas resources and reserves is approved, the contractor shall implement the phase of petroleum field development and prepare and submit an outline field development plan (ODP) to PVN, which will submit a report to the Ministry of Industry and Trade for appraisal and approval.
2. The main contents of the ODP include:
a) History of exploration and assessment of quality and quantity of petroleum and geological models of petroleum fields as well as a plan for quantification of petroleum for the following phase;
b) Petroleum field technology and preliminary recovery factor; field development plans and methods for selection thereof;
c) Forecast of the oil production and management of oil and gas field operation;
d) Preliminary design following selected field development plans and preliminary determination of investment costs;
dd) Drilling techniques, well completion and drilling plans;
e) Plans for implementation of safety and environmental protection;
g) Economic and technical assessment and selection of appropriate field development plans at the time of preparing the report;
h) Parameters and main criteria of the plans selected as the basis of creation of an overall technical design;
i) Preliminary plans for consumption of natural gas;
k) Assessment of tech-related risk degrees, oil price fluctuations and finance affairs of the projects;
l) Estimate of progress of implementation of the projects;
m) For onshore field development projects, onshore and offshore field development projects with a uniform chain of installations and equipment, apart from contents prescribed in points a, b, c, d, dd, e, g, h, i, k and l of this Clause, the following main contents must be included according to the regulations of laws on construction: preliminary contents of land use demand; resource use needs; the project's conformity with the relevant strategy and planning; assessment of socio-economic impacts, assurance about the national defense and security of the projects;
n) Conclusion and recommendation.
3. The contents of the appraisal of the ODP include:
a) Assessment of the suitability of field technology, forecast of oil production and preliminary recovery factor;
b) Assessment of the suitability of scheduled development plans on drilling techniques and extraction techniques and plans for selection thereof; parameters and main criteria of the plans selected as the basis of creation of the overall technical drawing;
c) Assessment of the satisfaction of the safety and environmental protection requirements;
d) Assessment of the reasonableness of the preliminary assessment of economic and technical efficiency; tech-related risk degrees, product price fluctuations and finance affairs of the projects;
dd) Assessment of the conformity with related planning;
e) Contents of the appraisal under regulations of laws on construction, for the contents prescribed in Point m Clause 2 of this Article.
4. The preparation, appraisal of and approval for the ODP shall replace those of the construction investment pre-feasibility study reports of the projects in accordance with the Construction Law.
5. When changing the selected development plans or land use demands (if any) or gas consumption plans formulated in the approved ODP, the contractor shall submit the adjusted ODP to PVN, which will submit a report to the Ministry of Industry and Trade for consideration and approval. Other contents of the adjusted ODP shall be considered and approved by PVN.
6. The Government shall issue regulations on documents and procedures for appraisal of and approval for the ODP.
Article 47. Preparation, appraisal of and approval for early field development plans (EDPs)
1. After the ODP is approved, if it is necessary to have study and additional collection of information to minimize risks later, the contractor may prepare and submit an early field development plan (EDP) to PVN, which will submit a report to the Ministry of Industry and Trade for appraisal and approval.
2. The main contents of the EDP include:
a) Results of the study of characteristics of field geology;
b) Statistics and analyses of composition and properties of reservoir fluids, studies on field simulation models, field technology and extraction process design and forecast of oil production and recovery factor;
c) Information about extraction techniques and feasibility studies;
d) Well completion and drilling techniques;
dd) Description of the system of installations and equipment used in hydrocarbon extraction;
e) Explanatory report on an overall technical drawing;
g) Plans for protection of resources, environment and ecology, including safety and incident handling and solutions to prevent and handle pollution risks and decommission petroleum installations;
h) Calculation of the total investments and economic efficiency of early field development projects;
i) Assessment of tech-related risk degrees, crude oil price fluctuations and finance affairs of the projects;
k) Implementation progress;
l) Estimate of costs for decommissioning of petroleum installations;
m) Gas sale framework agreement, for gas extraction projects;
n) For onshore field development projects, onshore and offshore field development projects with a uniform chain of installations and equipment, apart from contents prescribed in points a, b, c, d, dd, e, g, h, i, k, l and m of this Clause, the following main contents must be included according to the regulations of law on construction: information on the current land use status; conditions for land recovery; construction sites; plans for connection of technical infrastructure inside and outside the petroleum installations; construction solutions and mainly used building materials; assessment of socio-economic impacts, assurance about the national defense and security of the project;
o) Conclusion and recommendation.
3. The contents of the appraisal of the EDP include:
a) Assessment of the conformity with the plans selected in the ODP;
b) Assessment of the suitability of field geology, properties of reservoir fluids, field simulation models, extraction process design, oil production and recovery factor;
c) Assessment of the suitability of drilling techniques, extraction techniques and petroleum installation and equipment system;
d) Assessment of the reasonableness of the assessment of economic efficiency; tech-related risk degrees, product price fluctuations and finance affairs of the projects; and implementation progress;
dd) Assessment of the suitability of design solutions and standards applied in an overall technical drawing;
e) Assessment of the satisfaction of the safety and environmental protection requirements;
g) Contents of the appraisal under regulations of laws on construction, for the contents prescribed in Point n Clause 2 of this Article.
4. The preparation, appraisal of and approval for the EDP shall replace those of the construction investment feasibility study reports of the projects in accordance with the Construction Law.
5. The contractor shall submit an adjusted EDP to PVN for consideration and approval in case the adjustment leads to the increase of less than 10% of the total investments in terms of the following contents:
a) Adjustment of the number and size of intra-field pipelines, adjustment of capacity of equipment to increase the project efficiency as well as increase recovery factor;
b) Optimal adjustment of location, order and number of wells to increase oil production and reserves or optimize investment;
c) Application of additional technical solutions, open of new petroleum reservoirs discovered in the process of development drilling to increase the oil production and improve the project efficiency;
d) Test extraction for increasing recovery factor;
dd) Additional drilling of infill wells.
6. The contractor shall submit an adjusted EDP to PVN for consideration and submit a report to the Ministry of Industry and Trade for appraisal and approval in other cases apart from the cases prescribed in clause 5 of this Article.
7. After completing the EDP, the contractor shall submit its results to PVN for consideration and submit a report to the Ministry of Industry and Trade and update an extraction model with statistics and analyses to prove and conclude the capacity to apply the test diagram to extraction of the entire fields.
8. The Government of Vietnam shall issue regulations on requirements for preparation of an EDP as well as documents and procedures for appraisal of and approval for the EDP.
Article 48. Preparation, appraisal of and approval for field development plans (FDPs)
1. After the ODP is approved or before the time limit for implementation of the EDP ends, the contractor shall prepare and submit an FDP to PVN, which will submit a report to the Ministry of Industry and Trade for appraisal and approval.
2. The main contents of the FDP include:
a) Results of the EDP (if any);
b) Results of the study of characteristics of field geology;
c) Statistics and analyses of components and properties of reservoir fluids, studies on field simulation models, field technology and extraction process design and forecast of oil production and recovery factor;
d) Information about extraction techniques and feasibility studies;
dd) Well completion and drilling techniques;
e) Description of the system of installations and equipment used in extraction of petroleum;
g) Explanatory report on an overall technical drawing;
h) Plans for protection of resources, environment and ecology, including safety and incident handling and solutions to prevent and handle pollution risks and decommission petroleum installations;
i) Calculation of the total investments and economic efficiency of the projects;
k) Assessment of tech-related risk degrees, oil price fluctuations and finance affairs of the projects;
l) Implementation progress and schedule;
m) Statistics of principles and technical regulations applied in the process of petroleum drilling and extraction;
n) Gas sale framework agreement, for gas extraction projects;
o) Estimate of costs for decommissioning petroleum installations;
p) For onshore field development projects, onshore and offshore field development projects with a uniform chain of installations and equipment, apart from contents prescribed in points a, b, c, d, dd, e, g, h, i, k, l and m of this Clause, the following main contents must be included according to the regulations of laws on construction: information on the current land use status conditions for land recovery, land use demands; construction sites; plans for connection of technical infrastructure inside and outside the petroleum installations; construction solutions and mainly used building materials; assessment of socio-economic impacts, assurance about the national defense and security of the projects;
q) Conclusion and recommendation.
3. Contents of the appraisal of the FDP include:
a) Assessment of the conformity with the plans selected in the ODP;
b) Assessment of the suitability of field geology, properties of reservoir fluids, field simulation models, extraction process design, oil production and recovery factor;
c) Assessment of the suitability of drilling techniques, extraction techniques and petroleum installation and equipment system;
d) Assessment of the reasonableness of the assessment of economic efficiency; tech-related risk degrees, product price fluctuations and finance affairs of the projects; and implementation progress;
dd) Assessment of the suitability of design solutions and standards applied in an overall technical drawing;
e) Assessment of the satisfaction of the safety and environmental protection requirements;
g) Contents of the appraisal under regulations of laws on construction, for the contents prescribed in Point p Clause 2 of this Article.
4. The preparation, appraisal of and approval for the FDP shall replace those of the construction investment feasibility study reports of the projects in accordance with the Construction Law.
5. The contractor shall submit an adjusted FDP to PVN for consideration and approval in case the adjustment leads to the increase of less than 10% of the total investments in terms of the following contents:
a) Adjustment of the number and size of intra-field pipelines, adjustment of capacity of equipment to increase the project efficiency or increase recovery factor;
b) Optimal adjustment of location, order and number of wells to increase oil production and reserves or optimize investment;
c) Application of additional technical solutions, open of new petroleum reservoirs discovered in the process of development drilling to increase the oil production and improve the project efficiency;
d) Test extraction for increasing recovery factor;
dd) Additional drilling of infill wells.
6. The contractor shall submit an adjusted FDP to PVN for consideration and submit a report to the Ministry of Industry and Trade for appraisal and approval in other cases apart from the cases prescribed in clause 5 of this Article.
7. The Government shall issue regulations on documents and procedures for appraisal of and approval for the FDP.
Article 49. Combustion and discharge of gases
1. The contractor is responsible for the collection of gases after being used inside the field (if any) during the hydrocarbon extraction process and must present a plan for collection of gases in the EDP or FDP.
2. The contractor shall be permitted to combust and discharge gases in the following cases:
a) During the process of well testing to clear and clean wells; complete, repair or treat wells and to relieve pressure in wells;
b) In an emergency, in order to ensure the safety of people, assets and petroleum operations, or in case the gas treatment and transportation system is suspended due to a problem;
c) Based on the plan for annual combustion and discharge of gases related to operating security, and periodic maintenance of the petroleum field approved by PVN.
Article 50. Preparation, appraisal of and approval for decommissioning plans
1. During the period of performing operations, after ending each phase or terminating the petroleum contract, the contractor must decommission petroleum installations which are no longer used or can not be continually used for petroleum operations due to severe damage or unsuitable technology affecting the safety and efficiency of petroleum operations.
2. Within 01 year from the date of commercial production of the first oil and gas flow from the petroleum contract area, the contractor must prepare and submit a decommissioning plan to PVN, which will submit a report to the Ministry of Industry and Trade for appraisal and approval.
3. At least 01 year before the date on which the petroleum contract terminates or the extraction period ends, the contractor must update and send the decommissioning plan to PVN, which will submit a report to the Ministry of Industry and Trade for appraisal and approval.
4. The main contents of the decommissioning plan include:
a) List and description of means, equipment complexes and construction structures of petroleum installations to be decommissioned;
b) Solutions and technical plans for decommissioning petroleum installations;
c) Waste management and marine pollution control plan, environmental monitoring plan, environmental incident prevention and response plan, safety assurance plan during the decommissioning of petroleum installations;
d) Estimate of decommissioning costs, plans and progress of appropriation of funds to ensure the obligation to decommission petroleum installations;
dd) Progress of decommissioning petroleum installations.
5. Contents of the appraisal of the decommissioning plan include:
a) Assessment of the suitability of the list of means, equipment complexes and construction structures of petroleum installations to be decommissioned;
b) Assessment of the suitability of solutions and technical plans for decommissioning petroleum installations;
c) Assessment of the suitability of the waste management and marine pollution control plan, environmental monitoring plan, environmental incident prevention and response plan and safety assurance plan;
d) Assessment of the suitability and reasonableness in the estimate of decommissioning costs, plans and progress of appropriation of funds to ensure the obligation to decommission petroleum installations as well as the operating progress;
6. The contractor shall submit an adjusted decommissioning plan to PVN in case there is an increase in size or number of petroleum works, equipment or/and wells, thereby increasing less than 20% of decommissioning costs compared to the estimated costs mentioned in the latest approved decommissioning plan.
7. During the period of implementing the petroleum exploitation and development project, if it deems that a petroleum installation which has failed can not be repaired or is unsafe to be used, the contractor shall submit a decommissioning plan to PVN for consideration and approval.
8. The contractor shall submit an adjusted decommissioning plan to PVN, which will submit a report to the Ministry of Industry and Trade for appraisal and approval in the following cases:
a) There is an increase in size or number of petroleum works, equipment and wells or change of requirements for technology, techniques and slippage in service prices, thereby increasing at least 20% of decommissioning costs compared to the estimated costs mentioned in the latest approved decommissioning plan;
b) Decommissioning of petroleum installations must be partially implemented in case it is not determined in the approved decommissioning plan, decommissioning is suspended or the installations are left in place.
9. The Government shall issue regulations on documents and procedures for appraisal of and approval for the decommissioning plan.
Article 51. Decommissioning trust funds
1. Financial security in decommissioning of petroleum installations shall be done by the method of setting up a fund.
2. Within 01 year from the date of commercial production of the first oil and gas flow from the petroleum contract area, the contractor must prepare a decommissioning trust fund. This fund is annually allocated on the basis of the approved decommissioning plan and transferred to PVN. The fund annually allocated of each contractor is related to the participating interest of such contractor prescribed in the petroleum contract and is included in the recovery cost of the petroleum contract.
3. Before the petroleum contract terminates or the extraction period ends, the contractor must complete the allocation and transfer of the decommissioning trust fund.
4. The decommissioning trust fund shall be managed by PVN in a manner that is in accordance with the regulations of law and meet requirements for decommissioning according to the approved decommissioning plan. In the period of using this fund, PVN shall pay the amount of money of this fund into a commercial bank in which the State holds a controlling interest; and interests generated annually after fulfilling financial obligations according to relative laws shall be recorded as an increase in the decommissioning trust fund.
5. In case the balance of the decommissioning trust fund does not meet necessary demands in the decommissioning of petroleum installations, the contractor must make an additional contribution to ensure the fulfillment of the obligation to decommission petroleum installations. In case the fund for decommissioning of petroleum installations is not completely used, the remainder shall be refunded to the contracting parties according to regulations of the petroleum contract.
6. The Government shall issue regulations on the allocation, transfer, management and use of the decommissioning trust fund.
Article 52. Decommissioning
1. The contractor shall decommission petroleum installations according to the approved decommissioning plan. Petroleum installations must be decommissioned in a manner that meets requirements for safety and environmental protection in accordance with laws.
2. The contractor shall submit a proposal to leave part or the whole petroleum installations in place, suspend or terminate the decommissioning of petroleum installations to PVN, which will submit a report to the Ministry of Industry and Trade for approval.
3. The contractor must immediately decommission part or whole of petroleum installations which are severely damaged; petroleum installations which are seriously degraded but can not be repaired affecting the safety of petroleum operations.
4. During the extraction period, the contractor is entitled to decommission each part or several of petroleum works and equipment and destroy the wells which are included in the approved decommissioning plan but are no longer used in order to reduce operation and maintenance expenses according to the regulations in Clause 7 Article 50 of this Law.
5. The Government shall issue regulations on documents and procedures for submission, appraisal of and approval for the proposal to leave in place, suspend decommissioning of part or the whole petroleum installations.
Tìm kiếm
Luật Dầu khí 2022 (Bản Pdf)
Luật Dầu khí 2022 (Bản Word)