The Bach Ho oil field (White Tiger oilfield) is a major oil field in the Cuu Long basin of the East Sea located offshore due east of the Mekong Delta. (Photo: VNA)Thecomments were discussed in a “seminar on improving institutions and thedevelopment of oil and gas industry” held on June 13 in Hanoi.
Atthe seminar, participants said that during nearly 30 years of establishment,the oil and gas industry had made an important contribution to thecountry’s economic development and ensured energy security.
However,the Petroleum Law enacted in 1993 has now shown many shortcomings in oiland gas production and luring foreign investment in this sector.
EconomistNguyen Minh Phong told participants that the oil and gas industry was facing adecline in many aspects ranging from new oil and gas discoveries to a decreasein oil and gas production.
Phongsaid this was a downward trend as the world oil price strongly increased andsea disputes remain complicated.
Since1981, Vietnam has had 108 oil and gas contracts. At the moment, five contractsare being affected only. Over the last seven years, the Vietnam Oil and GasGroup (PetroVietnam) signed three new contracts only.
NguyenQuoc Thap, Vice Chairman of the Vietnam Oil and Gas Association, said thatseveral laws related to the operation of the oil and gas industry, such as Lawon Public Investment, Law on Investment and Law on Enterprise and Law onManagement and Use of State Capital enacted after Petroleum Law in1993 leading to an overlapping and duplication that needed to be handled soon.In addition, gas projects are dealing with many difficulties and are beingcarried out slowly due to the overlapping regulations and laws.
PhanDuc Hieu, a standing member of the National Assembly’s Economic Committee, saidoil and gas exploitation activities posed many risks amid the increasinginternational competition while Vietnam’s investment incentives under the lawin 1993 were no longer appropriate and attractive.
Moreover,international law was constantly changing while oil and gas activities requiredglobal compatibility, noting that Law on Petroleum in 1993 needed to be changedcomprehensively, said Hieu.
NguyenViet Son of the Ministry of Industry and Trade told the seminar that the draftrevised Petroleum Law had conducted six policies to facilitate the developmentof the oil and gas industry.
Thedraft revised Petroleum Law comprises 11 chapters and 64 articles and clarifiessix groups of policies that have been approved by the NA in ResolutionNo.17/2021/QH15.
Regardingthe draft revised Petroleum Law, Phan Duc Hieu said the National Assembly’s LawCompiling Committee added a chapter on the basic investigation in the industry.
Underthe chapter, the State will encourage relevant organisations andindividuals to participate in basic investigation activities of the oil and gasindustry. He noted that essential investigation of the oil and gas industryinvolved many risks. Therefore, it needs to conduct more specificregulations.
NguyenQuoc Thap said that oil prices fluctuated unpredictably and the draftlaw mentioned the increasing cost while failing to mention the decrease in oilprices. As a result, the law would affect oil and gas industry development.
TheVietnam Oil and Gas Association has asked the Law Compiling Committee toconduct more specific regulations relating to other laws, such as the Law onConstruction.
Thapsaid the revised Law on Petroleum needed to regulate the rights andresponsibilities of PetroVietnam in approving oil and gas projects.
TheNational Assembly will discuss the draft revised Petroleum Law this week./.
VNA
