You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

October 1, 2020

Vietnam Reduces Fines for Administrative Violations in Oil and Gas Sector

Subscribe to Updates

On August 26, 2020, the Vietnamese Government issued Decree No. 99/2020/ND-CP stipulating penalties for administrative offenses in the petroleum sector, and in the petrol, oil, and gas trading sector. Decree 99 will take effect on October 11, 2020, replacing Decree No. 67/2017/ND-CP dated May 25, 2017.

Decree 99 stipulates that the maximum fine in the sector of exploration and production of petroleum is VND 1 billion (approx. USD 43,000) for an individual and VND 2 billion (approx. USD 86,000) for an organization.

Broadly speaking, Decree 99 provides less strict penalties on prospecting, exploration, development, and production of petroleum compared to Decree 67, by reducing or removing the fines for certain violations that were set out under Decree 67.

For example, Decree 99 has removed the fines for failure to prepare and submit an annual work program in compliance with commitments made in a petroleum contract; the fines for commissioning offshore production works or facilities prior to certification of technical and environmental safety quality; and the fines for failing to re-calculate petroleum reserves when required by regulations.

Decree 99 has also lowered the fines in other areas. For example, Article 6 of Decree 99 provides that a fine of up to VND 400 million (approx. USD 17,250) will apply to drilling outside the petroleum contract area when the competent agency has not provided permission, provided no profit source has arisen or the illegal profit is below VND 100 million. By contrast, the monetary fine for the same violation under Decree 67 is up to 500 million VND (approx. USD 21,600). Another example is that a fine of up to VND 600 million (approx. 25,925 USD) will be imposed under Decree 99 for prospecting and/or exploring for petroleum before the petroleum contract has been approved by the competent level, provided no profit source has arisen or the illegal profit is below VND 100 million, whereas the maximum monetary fine of VND 800 million (approx. USD 34,500) is applied under Decree 67.

For more information on Decree 99, please contact us at [email protected].

Related Professionals

Industries

Energy

Location

RELATED INSIGHTS​ 

December 22, 2014
In association with Lex Mundi, Practical Law Company has published the latest edition in its series of Q&A-style guides to doing business in jurisdictions around the world. The Myanmar chapter, written by Tilleke & Gibbins attorneys, gives an overview of key recent developments affecting doing business in Myanmar as well as an introduction to the legal system; foreign investment, including restrictions, currency regulations and incentives; and business vehicles and their relevant restrictions and liabilities.
Read More
December 22, 2014
Practical Law Company, in association with Lex Mundi, has published the latest edition of its Q&A guides to doing business worldwide. The Thailand chapter, authored by Tilleke & Gibbins attorneys, presents an overview of the country’s legal system and the key laws applicable to foreign companies doing business in the Kingdom. In particular, the chapter examines the following main subjects:
Read More
December 25, 2013
The key to developing a successful business lies not only with having good entrepreneurial spirit and skills, but also with having sound knowledge of the laws and regulations that affect you and your company. To help business owners understand and navigate the ever-shifting legal landscape, Practical Law Company, in association with Lex Mundi, has published the latest edition in its series of multi-jurisdictional question-and-answer guides to doing business worldwide.
Read More
March 20, 2013
Published by Tilleke & Gibbins in association with Lex Mundi, the Guide to Doing Business in Thailand  provides a comprehensive overview of the legal environment for investors entering the Thai market. Topics covered in the guide include the political and economic situation, import and export regulations, exchange controls, tax, requirements for establishment of a business, structures for doing business, cessation or termination of a business, labor legislation, and immigration requirements. The guide provides an invaluable primer for investors new to Thailand.
Read More