Revisions to the Petroleum Law are necessary to help boost the oil and gas industry's development. (Photo: VNA) Nguyen Van Que, GeneralDirector of the Cuu Long Joint Operating Company - which is running the Su TuTrang (White Lion) project, said the overlaps among existing laws such as thePetroleum Law and the Law on Public Investment have been impeding theimplementation of exploration and exploitation projects.
Citing difficulties his companyfaced when operating Su Tu Trang, he said in this law, the regulation on capitalpreservation at risky projects such as oil and gas exploration and exploitationshould be amended in order to attract businesses, especially foreign ones.
The Cuu Long JOC alsoproposed Article 47 on the making, assessment, and approval of developmentplans for oil and gas wells be revised.
Trinh Viet Thang, member ofthe Members’ Council of the PetroVietnam Exploration Production Corporation (PVEP),said his firm has 35 oil and gas contracts but most of them are about to beexpired. PVEP carried out 26 projects from 2007 to 2015. However, since the Lawon Public Investment took effect in 2016, only two new projects have beensigned.
New oil and gas projects arehard to be signed and developed partly because most of Vietnam’s investmentincentives are related to exploitation zones, not the exploitation scale likein many other countries, he explained.
In addition, projects in theindustry are currently subject to regulations in many laws such as the Petroleum Lawand the Law on Public Investment. Therefore, for enterprises completelyowned by the State like PVEP, all projects in Group B (which are worth between 120billion VND (5.13 million USD) and under 2.3 trillion VND) must be submitted toauthorities at different levels, which is time-consuming and may encounteredmany problems.
Nguyen Van Que, General Director of the Cuu Long Joint Operating Company, speaks at the seminar on August 5. (Photo: VNA) He emphasised the consistent principlethat the Petroleum Law must be designed in a manner that concurrently booststhe development of the oil and gas sector and the economy as a whole; protectsVietnam’s rights and legitimate interests at sea in line with internationallaw; ensures human and property safety as well as investors’ legitimate interestson the basis of respecting Vietnam’s independence, sovereignty, territorialintegrity and national security, and adhering to the country’s laws.
Chairman of the VietnamPetroleum Association Nguyen Quoc Thap held that the law should be revised comprehensively,and even a new petroleum law should be built to meet current demand.
He pointed out that many oiland gas projects are being implemented in sensitive areas, so in many cases,they could not be offered for open international bidding. Besides, many of suchprojects are located offshore and need a large number of accompanying suppliesand services, thus causing additional expenses. All of these issues should beregulated in the new law to attract foreign investors.
Meanwhile, Deputy GeneralDirector of PVEP Hoang Ngoc Trung said the law needs to detail investment proceduresfor oil and gas projects, investment incentives, and financial mechanisms fordealing with risks.
A new law will provide an importantimpulse and necessary legal corridor for PVEP to immediately carry out five newprojects and increase reserves, he told the seminar.
Phan Duc Hieu, permanentmember of the National Assembly’s Committee for Economic Affairs, said therevised law should focus on improving the effectiveness and efficiency of oiland gas-related activities and enhancing investment attractiveness.
It also needs to be addedwith regulations on all stages from exploration to exploitation, compatiblewith other laws, and include competitive, long-term and flexible investmentincentives, according to him.
The draft revised law isscheduled to be submitted to the NA Standing Committee for consideration thisAugust and to the NA this October./.
VNA
