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On July 01, 2023, the Government issues the Decree No. 45/2023/ND-CP detailing a number of articles of Law on Petroleum.
Accordingly, Article 18 prescribes the criteria for selecting contractors for the signing of petroleum contracts as follows:
- Information about the qualifications of the bidder, including:
- Technical and financial capacity, available funding sources for the execution of petroleum operations;
- Experience in executing petroleum operations, petroleum contracts (in case of contractor consortium, capacity and experience of contractors shall be determined by the sum of capacity and experience of members of contractor consortium);
- Relevant contracts and agreements that have been and are being implemented (if any);
- Regarding technical condition criteria appropriate to each oil block:
- Minimum work obligations (new seismic acquisition, reprocessing of seismogram, quantity of wells);
- Field development and extraction obligations;
- Methods of implementation and optimal technology for petroleum operations that fulfill of requirements pertaining to environmental protection and reduction of carbon dioxide emission;
Criteria regarding economic conditions appropriate to each oil block, including:
- Taxes conforming to tax laws and surcharges when oil price surges;
- Host country’s profit oil, profit gas ratio; participating interests of the host country (via the PVN) upon making first commercial discovery within the area covered by petroleum contracts (if applicable);
- Participating interests of PVN or subsidiaries thereof when designated to participate as contractors;
- Percentage of costs recovered;
- Financial commitment corresponding to minimum work obligations; commitment to other financial obligations (commissions, training costs, donations to petroleum scientific research and technology development fund).
