Government opens up oil sector to more firms

Laws - The Government has thrown open the petroleum sector to more categories of businesses, relaxing restrictions that prevented all but a few firms from operating in the sector.

Its new Decree No 115/2009/ND-CP which amends Decree No 48/2000/ND-CP and is put into effect on February 14 next year, allows enterprises that have been set up under the Enterprise Law as well as all foreign and Vietnamese organisations and individuals to join the work.

Under the new decree, all exploration and drilling activities will have to be carried out through Viet Nam Oil and Gas Group (PetroVietnam).

It allows exploration contracts to be extended if the work is not completed on schedule unlike earlier when a fresh contract had to be signed.

The decree also supplements some regulations related to bidding for petroleum services. It allows organisations and individuals involved in petroleum exploration and drilling to hire sub-contractors.

The changes are expeced to facilitate greater participation in oil exploration and drilling by interested parties.