Chairman of the NA’s Committee for Economic Affairs Vu Hong Thanh speaks at the session. (Photo: VNA) Delivering a report on the explanation, acquisition andrevision of the draft law, Chairman of the NA’s Committee for Economic AffairsVu Hong Thanh said that many have suggested adding midstream and downstreamoil and gas exploration and exploitation activities to the scope of the amendmentof the draft law.
Thanh said that upstream oil and gas exploration andexploitation activities are closely linked with the fields of defence, securityand foreign affairs. Therefore, it is necessary to have a separate provision inthis law.
Speaking at the session, NA Chairman Vuong Dinh Hue appreciated efforts of thedrafting agency - the Ministry of Industry and Trade, the legislature's Committeefor Economic Affairs and relevant agencies - in the study and acquisition ofopinions of deputies at the legislative body’s third session to complete thedraft law with a high quality.
He suggested the report on verification of the draft lawreview the overall objectives, viewpoints and major policy orientations.
NA Chairman Vuong Dinh Hue (C) (Photo: VNA) The draft law should also clarify the stance of the economisationof the natural resources industry; the management, exploitation and use ofpetroleum survey database; and the principles of using funds for the basic survey. It should ensure consistency among the provisions of the draft law.
Regarding the approval of oil and gas contracts, the NAChairman said that the contracts are very important, bind the responsibilitiesand obligations of the parties, can last for decades during which disputes andrisks may arise. He suggested this kind of contract be approved by thePrime Minister.
Agreeing with the top legislator’s ideas, Minister ofIndustry and Trade Nguyen Hong Dien said that a petroleum contract is a legallybinding agreement between the State and an investor (petroleum contractor) witha very long term (often more than 30 years), with many specific contentsrelated to national defence, security, sovereignty, and sea surface.
In addition, the terms of oil and gas contracts are closelyrelated to each other, so it is difficult to distinguish between the main and the auxiliaryterms.
Therefore, the regulation of the Prime Minister's authorityto approve the entire oil and gas contract is in line with the reality of oiland gas exploration and exploitation activities in Vietnam, the ministeraffirmed.
The Law on Petroleum was first introduced on July 6, 1993, and revised in 2000, 2008 and 2018. Together with guiding documents, it hasbeen facilitating the development of the oil and gas industry. However, therehave been a number of challenges emerging in the enforcement of the law. Forexamples, there are major gaps between several provisions and the changingreality as well as the robust growth of the energy sector at present. Someparts of the law are also not consistent with related laws and regulations.
A draft revised law on oil and gas was first submitted fordiscussion at the third session of the 15th National Assembly, aiming to builda law more relevant to the current situation and enhance the effectiveness andefficiency of State governance in the field. The revision also seeks to providea more unified regulatory framework and remove legal barriers forinvestors.
The amended Petroleum Law is scheduled to be tabled fordiscussion again and adopted at the upcoming fourth session of the 15thNational Assembly slated for October 20./.
VNA
