MoIT proposes five major policy groups for amended Petroleum Law

The Ministry of Justice has officially released the dossier for the appraisal of the draft amended Petroleum Law, with the Ministry of Industry and Trade (MoIT) serving as the lead drafting agency.

As the nation enters a new era of development, the MoIT emphasizes that further upgrading the 2022 Petroleum Law is essential to meet new requirements and drive the industry forward effectively.

The primary objective of the proposed changes is to enhance the law’s feasibility, ensure consistency within the national legal system, and improve the efficiency of state management over petroleum activities.

Central to these policies is the protection of the legitimate rights and interests of contractors, investors, and organizations. By creating a more streamlined and favorable legal corridor, the government aims to support the Vietnam Oil and Gas Group (PVN), industry enterprises, and investors in conducting basic surveys and operations while simultaneously attracting more foreign and private investment into the sector.

To achieve these goals, the MoIT has proposed focusing on five major policy groups.

The first group aims to perfect and simplify administrative procedures while decentralizing the appraisal and approval process for petroleum surveys and activities to increase responsiveness.

The second policy group focuses on refining regulations governing petroleum contracts. These amendments are intended to resolve unique practical challenges encountered in Vietnam and introduce new provisions for emerging issues currently unaddressed by existing laws, thereby fostering a more conducive environment for industry operations.

The third policy pillar seeks to expand and refine investment incentives. This includes revising provisions for marginal fields, petroleum projects utilizing enhanced oil recovery techniques, and carbon capture and storage initiatives. 

The fourth policy group introduces mechanisms to develop the broader petroleum value chain, specifically targeting high-tech technical services and offshore energy development.

Finally, the fifth policy group establishes a regulatory framework for greenhouse gas emission reductions and carbon capture and storage within the petroleum sector.