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​ 

March 25, 2020
The Ministry of Energy has issued an order to delay the 23rd round of bidding for petroleum exploration and production, as reported on the official website of the Department of Mineral Fuels (DMF). The 23rd round of bidding involved three exploration blocks in the Gulf of Thailand, and was previously expected to open in early April 2020, with the DMF set to return their final decision regarding concessions within the end of 2020. The delayed round of bidding would have reportedly been the first round in 13 years.
Read More
March 19, 2020
The effects of the global COVID-19 pandemic on Southeast Asia are a deep concern shared by all with connections to the region. To encourage clear understanding of the facts on the ground, Tilleke & Gibbins has prepared this high-level snapshot of the legal situation as it currently stands in each of our jurisdictions.Administrative and Judicial Functions
Read More
March 17, 2020
On March 2, 2020, the Department of Mineral Fuels (DMF) issued Notification Re: the Determination of Exploration Blocks for the Bidding for Petroleum Exploration and Production Concessions B.E. 2563 (2020). This notification, which repeals Notification of the Department of Mineral Fuels Re: the Determination of Exploration Blocks for the Bidding for Petroleum Exploration and Production Concessions B.E. 2561 (2018), allocates the areas to be used as exploration blocks for the 23rd round of bidding for petroleum and exploration production concessions.
Read More
February 14, 2020
Joseph Tomkiewicz, partner and co-chair of Tilleke & Gibbins’ energy industry team, has contributed the Thailand chapter of the new Lex Mundi Global Climate Change Law Guide . Featuring contributions from Lex Mundi member firms from around the world, the guide responds to the rapid increase of interest in global climate change policies and related issues.
Read More