Deputy Tran Hong Nguyen of Binh Thuan province proposes the addition of regulations on selecting contractors providing goods and services for oil and gas production at the National Assembly session.

Deputy Tran Hong Nguyen of Binh Thuan province said the addition will ensure fair competition and transparency if an oil and gas contract involves foreign contractors, Petrovietnam, and 100% Petrovietnam-owned businesses.  

Petroleum is the property of the Vietnamese people which is represented by the State of Vietnam and is subject to uniform management by the State of Vietnam, according to the National Assembly Standing Committee. As oil and gas are mostly exploited in the waters and closely linked with national defense, security and sovereignty, there should be regulations on selecting contractors providing goods and services for oil and gas production.  

Article 30 of the draft revised Petroleum Law stipulates that a petroleum contract must include principles on selecting contractors for oil and gas production. Article 59 of the revised law, which deals with the contractor’s obligation to inform Petrovietnam of the selection of contractors providing goods and services for oil and gas production, has now included the contractor’s obligation to ensure fair competition, transparency, and effectiveness in selecting contractors providing goods and services for oil and gas production.  

Workers on an offshore platform.

The National Assembly Standing Committee has made it clear that the Petroleum Law is not designed to serve Petrovietnam. The law only stipulates Petrovietnam’s rights and obligations in Article 60. When Petrovietnam works as a contractor in an oil and gas contract, it will have the same rights and obligations as other contractors.

The company also has to follow other laws governing economic groups. Therefore, the Petroleum Law has no regulations on Petrovietnam’s and 100% Petrovietnam-owned businesses’selection of contractors providing goods and services for oil and gas production

The draft revised Petroleum Law contains a regulation requiring a contractor to select contractors providing goods and services for oil and gas production (Article 59) but experts argued that this regulation fails to stipulate how the selection process should be done.        

In addition, according to Article 1 of the Bidding Law, selecting contractors for oil and gas production is not covered by this law.  

Experts agreed that the supplement of regulations to the draft revised Petroleum Law is necessary to close the loophole in existing laws.