Asia Pulse Pte Ltd | Thursday, December 31, 2009

The Vietnamese 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.

The government's new Decree No 115/2009/ND-CP, which amends Decree No 48 2000/ND-CP and goes 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 organizations and individuals to participate.

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. Previously, a new contract had to be signed under that scenario.

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

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

(C) 2009 Asia Pulse Pte Ltd.