The International Comparative Legal Guide to

:

Gas Regulation 2011
A practical cross-border insight into Gas Regulation work
Published by Global Legal Group, in association with Ashurst LLP, with contributions from:
ǼLEX Ali Budiardjo, Nugroho, Reksodiputro Allens Arthur Robinson Bell Gully BNG Legal Chandler & Thong-ek Law Offices Limited CMS Cameron McKenna Cogan & Partners LLP Criales, Urcullo & Antezana Debarliev, Dameski & Kelesoska Dr Kamal Hossain & Associates Duane Morris LLP Estudio Gálvez Abogados Fortunati & Asociados Garrigues Gorrissen Federspiel Haavind AS Hogan Lovells InterJuris Abogados, S.C JeantetAssociés AARPI KALO & ASSOCIATES King & Spalding LLP Loyens & Loeff N.V. Mohamed Ridza & Co O'Flynn Exhams Pachiu & Associates Rosenberg, Hacohen, Goddart & Ephrat Schoenherr SNR Denton Studio Legale Bonora e Associati TGC Corporate Lawyers Uría Menéndez Vellani & Vellani

It is expected to take approximately 5 years to bring it on-stream from the time of a final official decision to go ahead.5-3. The proven reserves can be found under Endnote 1. and commodity sales and trading. This compares favourably with averages in the Asia Pacific region and slightly less than global levels. Ca Mau and Phu My consumption centres to improve security of supply of each.) Natural gas projects In the past five years there has been only one large new project under negotiation. In the technology area. (See Endnote 2 and Endnote 3. such as the collection. a “national trunk pipeline” that also connects the O Mon.ICLG. new production feeds into. eventually at least 3. Largescale gas development based on offshore resources began in 1995 in Vietnam. mainly in the Nam Con Son area. as compressed natural gas (CNG). Depending on the assessment of domestic gas prospects. across the Delta to Phu My and possibly extending as far as QuangNgai province. others are tributary to existing pipeline systems such as those from PM-3. 2 or 3 of which are in the north. 3. including liquefied natural gas (LNG) liquefaction and export facilities. Nam Con Son and Bach Ho offshore developments. with the production of associated gas from the Bach Ho fields. of associated gas presently flared mainly in the Bach Ho area and the tie-in of marginal gas fields. in both cases feeding distribution systems that serve industrial and commercial markets. Two major gas to power projects are in operation: Bach Ho + Nam Can Son developments feeding the Phu My power complex at over 4 BCM annually and the PM-3 development in the Malay-Tho Chu Basin. Some of these are supported by new pipelines to onshore. Forecast of World Bank in Report No. natural gas pipeline transportation and distribution/transmission network. London . 52865-VN The geography of the vision for Vietnam’s gas industry in 2025: 6-8 significant offshore developments. and new consumption draws from. Natural gas reserves and production According to BP Statistical Review of World Energy 2010. then from Block 11-2 in 2006.5 BCM/yr. Projects that await approval are still being negotiated on a case-by-case basis. Vietnam’s gas reserve is approximately 10 trillion cubic feet. feeding Ca Mau power and fertilizer plants at 1. The Power Master Development Plan (Power Master Development Plan approved 2009) and the draft National Gas Master Plan envisage gas use for energy generation in Vietnam to rise dramatically from >8 BCM in 2010 to 13/15 BCM in 2015 and 21/24 BCM in 2025. “rings” are built around Hanoi-Haiphong. This was followed in 2003 when gas from the Nam ConSon basin gas fields started to come on-stream. The refinery-petrochemical complex at Dung Quat is the first industrial development of this kind that presents sufficient market to support a new gas project. means have been found to deal with high CO2 content natural gas and to develop CBM from Vietnam’s coal resources. Gas currently accounts for about one-third of Vietnam’s total annual energy generation. Pipeline projects that may be imminent tend to be small scale.3 BCM/yr).CO.2 To what extent are Vietnam’s energy requirements met using natural gas (including LNG)? 1. Facilities have been created to collect associated and nonassociated gas from marginal and remote fields. A trunk onshore pipeline connects the main gas consuming centres from Ca Mau and OMon in the southwest. Gas now accounts for about 15% of Vietnam’s primary energy supply. Gas transmission “rings” have been created around HCMC. Pipeline In the south of Vietnam. and/or receiving and re-gasification facilities (“LNG facilities”). In 2007 came the first deliveries of gas from the PM-3 development in the offshore area jointly administered with Malaysia. If large-volume gas supply comes to the north. natural gas production including the extent to which production is associated or non-associated natural gas. A third gas to power project is presently under negotiation (Block B&52 to O Mon. natural gas storage.UK ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. each of 2-3 BCM/annum.Chapter 40 Vietnam Duane Morris LLP Giles Cooper Oliver Massmann 1 Overview of Natural Gas Sector 1. to supply the domestic market. 1. including a general description of: natural gas reserves.7 million tonnes/annum).1 A brief outline of Vietnam’s natural gas sector. Vietnam’s gas industry has a comparatively short history. import and export of natural gas. a first LNG project has been developed or is in progress for 25 BCM/annum (1. 2. This represents an approximate tripling of 338 WWW. namely Chevron’s B&52 gas prospect in the Malay-Tho Chu basin for the O Mon power project. All offshore basins that are not disputed with other countries have been explored to the degree necessary to provide reliable 1P and 2P reserves data for purposes of oil and gas production planning.

(PVGAS) has announced plans to import around 3 BCM of gas annually by 2015.60% of supply. The country’s primary energy demand is met by an estimated 44% through oil. Vietnam has potential for gas export. Subsequently standard terms for production-sharing contracts were developed and promulgated. 2. PetroVietnam retains a monopoly in the purchase or reselling of any gas.Duane Morris LLP supply and demand in 15 years. foreign. Both of these two approaches are referred to in the law. State Property in Petroleum: the Petroleum Law asserts and confirms that all petroleum lying within the State’s jurisdiction. As the main gas supplier. in whom the State’s mineral rights to natural gas are vested. but not likely until the period from 2010 to 2019. in short. The main purposes of a petroleum legislative framework are to provide the basic context for and the rules governing petroleum operations in the host country. it is supplemented by the implementing Decree 48/2000/ND-CP. based on comparison between gas consumption and demand. joint venture contract or other contractual forms. For upstream projects PSAs are generally concluded between the relevant exploration and production companies and PetroVietnam. Regarding its regulatory regime. to regulate them as they are carried out by domestic.is the exclusive property of the State. which primarily acts through its subsidiary PVGAS. 18 % through gas. Finally. Due to an increasing domestic energy demand.84% of Asia Pacific.including offshore areas where it exercises exclusive economic interest over such resources . The first concept was a joint venture on the basis of which was established the Vietsovpetro agreement between Vietnam and Russian Governments. investors or companies (referred to in the Model Contract as Operators) are entitled to retain a part of the exploited petroleum to cover their investment and operation expenses (called cost recovery petroleum). 85% of gas supplied in Vietnam is consumed for power generation. Accordingly. transmission and distribution fees and on technical standardisation. Any derogation from such form must be approved by the Prime Minister. PetroVietnam Gas Corp. The Operator will be then entitled to share the remaining petroleum net of taxes and excises (called the profit petroleum).CO. economic.UK 339 Vietnam . concession. Any provisions to the contrary in other laws or rights granted or vested hereunder in derogation of The Petroleum Law allows two ways of conducting petroleum development: through forming an incorporated joint venture and through a Production Sharing Agreement. The cap of expensesrecovering oil/gas is up to 70% of the total exploited petroleum in case of petroleum investment promotion projects and 50% for other cases. there is no clearly established process for developing gas projects in Vietnam and the legal framework is characterised by a lack of clarity and transparency. Under the Model Contract. as Petroleum Agreements to which the Vietnamese party is PetroVietnam. by way of a Production Sharing Agreement (PSA). contractual rights under Production Sharing Agreement?) and what is the legal status of those rights or interests under domestic law? According to BMI’s Report. service contract. All Petroleum Agreements must follow the Model Contract. while its share of production is put at 2. periodically consider and readjust financial terms so that petroleum activities become competitive in the region. the shortage is expected to increase to approximately 4-8 BMC per year up to 2025. Government authority or authorities responsible for the regulation of natural gas development. encourage and give incentive to developers in natural gas. The Petroleum Law (enacted in 1993 and reformed in 2000) provides an overall framework for the exploration and development of gas resources and related-services. Vietnam’s gas production is slightly higher than its demand: estimated gas consumption in 2010 will account for 1.ICLG. 2 Development of Natural Gas 2. focused almost entirely on power generation. and the Model Contract. gas exploration and production is fully controlled by the State and the only company authorised to develop gas is the State-owned PetroVietnam. Current major initiatives or policies of the Government The National Strategy on Energy Development set forth the strategic development of the petroleum sector until 2020: Build up legal framework for the petroleum sector.g. licence.4 To what extent is Vietnam’s natural gas production exported (pipeline or LNG)? According to BMI’s Report. 1.20%.0bcm in 2019. 17% through coal and 17% through hydro-power. 10% for fertilizer and 5% for other industries. with only 184% demand growth.2 How are the State’s mineral rights to develop natural gas reserves transferred to investors or companies (“participants”) (e. Foreign investors may conduct gas development projects only in cooperation with PetroVietnam. and to define the principal administrative. Gas production is expected to rise from an estimated 9. which has let to delays in project development in the past. By 2014. with amendments 2000 and 2008. All project details and pricing are based on negotiations with PetroVietnam on a project-by-project basis. and current major initiatives or policies of the Government (if any) in relation to natural gas development. its share of gas consumption is forecast to be 2. The three essential elements of such a framework in Vietnam are the Petroleum Law 1993.1bcm in 2010 to 34. with the country accounting for 4. the implementing regulations (primarily Decrees and Circulars).3 To what extent are Vietnam’s natural gas requirements met through domestic natural gas production? Vietnam same are expressly superseded by this provision in the Petroleum Law. on approval of natural gas price. the Operator can sell its oil/gas entitlement freely on ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. and diversify ownership in investment and operation of electricity generation factories using natural gas. and international enterprises. and fiscal guidelines for investment activity in the sector. London WWW. Prioritise natural gas development and use.56%. especially in the natural gas sector: regulations on permission of transmission and distribution of natural gas. Encourage petroleum survey. 1. Since the 1980s Vietnam has developed a variety of contractual models to explore and develop its petroleum resources. Vietnam has opted for the coexistence of a Competent Authority and a national oil company (NOC).1 Outline broadly the legal/statutory and organisational framework for the exploration and production (“development”) of natural gas reserves including: principal legislation. Nonetheless. both onshore and offshore . The State vests the NOC with exclusive authority over the sector as the de facto Competent Authority.

the Vietnamese Government has authority to permit a greater area. data and information acquired during the conduct of Petroleum Operations are the property of the State.Duane Morris LLP the open market and transfer the profit abroad. in the development of natural gas reserves (whether as a matter of law or policy)? Vietnam For natural gas prospection. data and information All the samples. Exploration stage Upon discovery of petroleum. 3.CO. and send them to PetroVietnam for agreement on the implementation thereof. 2. recruitment and technology transfer. if any. 2. draw up an annual work programme corresponding to each period in conformity with the commitments in the Petroleum Contract regarding the time limit.g. or seek to participate. 5.3 If different authorisations are issued in respect of different stages of development (e. which is recognised by Vietnam’s Constitution. 2. PetroVietnam shall negotiate within 90 days with the bid winner on the petroleum contract on the basis of content of the bid. Ownership of fixed installations and equipment Although a contractor is permitted to install and operate and maintain fixed installations and equipment servicing Petroleum Operations. In special cases. the contractor may start early production in the contractual areas. cores. exploration appraisal or production arrangements). subject to payment of taxes. If the appraisal results show that the field is of commercial value. The Petroleum Law also sets forth a framework for Petroleum Contract as follows: 1. scope of rights. on conditions that it submits to the Competent Authority the Early Production Plans for approval. contractors may retain the areas where gas is found. and prepare the documents as outlined in question 2. The contractor and PetroVietnam must reach an agreement in the relevant petroleum contract on the terms regarding criteria to determine fields of commercial value. 4. and 2 years for the exploration period. work contents and financing. 2. please specify those authorisations and briefly summarise the most important (standard) terms (such as term/duration. London . Project and work programmes The successful bidder/party to the Petroleum Contract is required to: draw up conceptual plans and detailed plans forts activities. as well as commitments regarding training. 3. expenditure obligations). the State’s ownership interest will be assured by the following rules: 1. from the date of receiving such plans. Preemptive right over assignment of Petroleum Contract PetroVietnam shall have the preemptive right to acquire the Petroleum Contract or portion thereof in case of total or partial 340 WWW. Contractual period Vietnam consideration and approval. Ownership of samples. in special cases. the contractor and PetroVietnam shall have to submit to the Competent Authority the reserve report and the field development plans for submission to the Prime Minster for approval. Restriction of area for petroleum operation The area for prospecting and exploration under a petroleum contract shall not cover more than two (2) blocks. be extended for up to 2 more years.11. Upon notification of the bidding results. based on the appraisal report of the Ministry of Industry and Trade. Bidding process Upon notification of the invitation for bids made by PetroVietnam. Then the bids will go through processes of bid opening. of which the prospection and exploration period shall not exceed 7 years. does the State have an ownership interest. the outline plan and field development plans.. Different stages of petroleum operation are set forth by the Petroleum Law and the Decree implementing the Petroleum Law broadly as follows: 1. The contractual period of the Petroleum Contract may be extended. Upon approval of the Prime Minister. Appointment of the bidder will be submitted to the Ministry of Industry and Trade. the time limit for submitting the field reserve appraisal programmes. Within 10 working days after receiving the signed original petroleum contract. The duration of retention of such an area shall not exceed 5 years and may. The time limit for consideration and approval is 60 days for a conceptual plan and 30 days for a detailed plan. The dossier will be circulated around different ministries 2 months before it is submitted to the Prime Minister for approval. a bidder company shall within 60 days lodge its bid. cores. 2.UK ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. the term of Petroleum Contract shall not exceed 30 years. Then the contractor has to notify the reserve appraisal results to PetroVietnam. and (ii) the minimum workload and minimum financial commitments. the contractor must promptly notify and report on the study results. PetroVietnam and the contractor shall sign the petroleum contract. Prospecting and exploration stage An agreement must be reached with PetroVietnam containing minimum commitments regarding the geophysics survey volume. evaluation and appraisal of bidding results. The cost estimates for the above-mentioned minimum work commitment shall be considered the minimum financial commitment. the Ministry of Industry and Trade is authorised to grant an Investment Certificate to the investors. the ownership of such fixed installations and equipment shall belong to the State of Vietnam from the date agreed upon by the parties to a Petroleum Contract. and submit them to the Competent Authority for The State’s exclusive ownership over its natural resources is a matter of policy and law. but not exceeding a further 5 years. number of drilled wells volume and other integrated studies. exploration and exploitation projects.4 To what extent. During this stage. The State’s ownership interest is exercised by PetroVietnam that is empowered to conduct petroleum operations and to enter into petroleum contracts. evaluation and relevant documents to the Competent Authority and PetroVietnam. As stated above. If gas with commercial value is discovered but the market demand and/or conditions on pipelines and suitable treatment facilities do not exist. and then the Prime Minister shall consider and issue a formal decision on appointment of the bidder.ICLG. including its offers and commitments to fulfil the bidding norms: (i) the share of oil and gas profit to the host country. the Petroleum Law asserts and confirms that all petroleum is within the State’s jurisdiction. In case a petroleum project is shared between PetroVietnam and other party(ies). Appraisal of petroleum contract and grant of certificates A dossier for appraisal of a petroleum contract shall be submitted to the Ministry of Industry and Trade.

The cap set up by the Petroleum Law is up to 70% of the total exploited petroleum in case of petroleum investment promotion projects and 50% for other cases.UK 341 Vietnam Profits for reinvestment shall not be subject to reimbursement of enterprise income tax. Despite this general right to export. Share of production According to the Model Contract. Royalties According to Circular No. the Government does retain discretion to mandate restrictions on exports and/or domestic sale in some circumstances. London WWW. Royalty As described above.CO. 2. as below: Royalty amount payable in crude oil or natural gas = Daily output of petroleum subject to royalties in royalty period x Royalty rate x Number of days of petroleum exploitatio n in royalty period Royalty amount for natural gas: At present. PetroVietnam is entitled to share petroleum production net of: 1. though export duty issues will be relevant as discussed below. Corporate income tax (“CIT”) Determination of taxable income: Export duty percentage = 100% Percentag e of temporarily calculated royalties in royalty period x Export duty rate applicable to crude oil or natural gas Taxable income in tax period = Turnover from petroleum operations in tax period - Deductible expenses in tax period + Other incomes in tax period In general then. Article 28 of the Petroleum Law recognises contractors’ rights to export petroleum production without having to apply for export permits. The contractor may be exempted from CIT for a maximum period of two (2) years and entitled to the fifty percent (50%) reduction of CIT for a maximum period of two (2) subsequent years. in cash. . overseas accounts must be registered with Vietnam’s State Bank. x CIT rate Payable CIT amount in tax period = Taxable income in tax period Contractors have the right to exchange foreign currencies at commercial banks or licensed credit institutions for purposes of meeting foreign currency transaction needs or other permitted transactions. Royalties are payable in crude oil or natural gas and progressive on the basis of the total net petroleum output exploited in each royalty payment period. The rate applicable to investment promotion projects is 32%. while a further 20% may be offered to one or more strategic investors. royalty.ICLG. While PetroVietnam operates the State’s monopoly. some 5% of shares may be offered to investors. pursuant to generally-applicable Vietnamese legislation on foreign exchange management. share of production. 2. 2. there are no express restrictions of the export of production. 2. its gas subsidiary PVGAS reportedly plans to conduct an IPO on the HCM City Stock Exchange.6 Are there any restrictions on the export of production? The State derives value from petroleum operations primarily through royalties (referred to as a “tax on natural resources”). taxes)? Vietnam The basic CIT rate is 50%. or partially in cash and partially in crude oil or natural gas.7 Are there any currency exchange restrictions. the default rate of 35% will apply.g. 32/2009/TT-BT. the higher the royalty rates. or restrictions on the transfer of funds derived from production out of the jurisdiction? Determination of the payable CIT amount: Contractors have the right to open accounts in Vietnam and overseas. Exceptions are made ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. 2. corporate income taxes and share of production. Determination of payable export duty amounts: Output Projects eligible for investment promotion Other projects Up to 5 million m3/day 0% 0% Payable export duty amount Volume of exported crude oil or natural gas Export duty percentage Between over 5 and 10 million m3/day 3% 5% = x Dutiable price x Over 10 million m3/day 6% 10% The export duty percentage is determined as follows: Royalties shall be paid in crude oil or natural gas. In case of absence of such a negotiation.5 How does the State derive value from natural gas development (e. 3. 1.Duane Morris LLP assignment of Petroleum Contract bythe contractor. the smaller the export duty will be. Under this plan. Cost recovery petroleum This kind of expense is subject to negotiation of the Petroleum Contract.

ICLG. However. profits and other lawful revenues earned in the course of petroleum activities. after fulfilling the tax obligations. the contractor must from time to time abandon fixed installations and equipment no longer in use. transfer of the capital amount contributed pursuant to the Petroleum Contract) if: a) b) the transferee undertakes to continue to perform the Petroleum Contract concluded by the transferor. contractors have the right to transfer part or all of their interest in Petroleum Contracts (i. Similarly. However the law does require contractors to meet minimum workload and financial commitments.11 In addition to those rights/authorisations required to explore for and produce natural gas.Duane Morris LLP for certain “important projects”. In general. as described above. A safety control programme and the risk evaluation enclosed with measures to mitigate incidents and damages. has a preemptive right to acquire the Petroleum Contract or portion thereof proposed for transfer. transferrable with permission of the Prime Minister. what are the principle features/requirements of the legislation? The Petroleum Law does not require a contractor to provide any specific security or guarantee. or booked for accounting purposes under domestic law. The Civil Code defines property rights as “rights able to be evaluated in money and transferable through civil transactions.UK ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. what other principal Government authorisations are required to develop natural gas reserves (e. although it is of common sense to address them to the Competent Authority (Ministry of Industry and Trade) and PetroVietnam. including intellectual property”. Despite this. through PetroVietnam. except for the CIT rate is 25% and CIT exemptions and reductions are not applicable. Then he has obligation to make plans of well abandonment for each abandoned well. what are the principal features/requirements of the legislation? The transfer of part or whole of the Petroleum Contract must be approved by the Prime Minister and takes effect as prescribed in the modified investment certificate.e. For grade-I LPG distribution: companies must own or co-own an 342 WWW. 2. On this basis.CO. 3. Expenses for the abandonment shall be accounted as cost recovery petroleum. contractors’ rights under Petroleum Contracts. As stated above. The Petroleum Law is silent on the contents and to whom these documentations are to be addressed. 2.10 Can rights to develop natural gas reserves granted to a participant be pledged for security. occupational health and safety) and from whom are these authorisations to be obtained? Vietnam The Petroleum Law allows foreign investors to transfer abroad income from the sale of petroleum being part of recovered expenses.9 Are participants obliged to provide any security or guarantees in relation to natural gas development? A.12 Is there any legislation or framework relating to the abandonment or decommissioning of physical structures used in natural gas development? If so. Abandonment of fixed installations and equipment During the course of petroleum operations. Requirement of minimum storage capacity For LPG production or processing:companies must have an LPG storehouse (beyond the storing capacity already approved in the investment project). However.g. with a total capacity of tanks of at least 5. the contractor must make or draw up: 1. including technical solutions and the utilisation of means and equipments to overcome the incidents. The contractor must draw up plans on abandonment of fixed installations and equipment and make financial provisions for the abandonment. or booked for accounting purposes under domestic law? There are no express rules in Vietnam as to whether rights to develop natural gas reserves can be pledged for security. the Government is likely to be unwilling to recognise such rights as property rights for this particular purpose and it is notable that nothing in the accounting legislation expressly permits contractors to book such rights for accounting purposes. A report on environmental impact assessment. Emergency response plans. as specified by Decree No. The revenue derived from such a transfer is subject to CIT. the amounts of foreign currency exchange must not exceed the amount in Vietnam Dong earned by the contractor from the sale of oil and gas on the Vietnamese market.000 m3 or more under a joint venture or capital contribution contract approved by a competent authority and built under planning and according to current technical regulations. environmental.000 m3 and built under planning and according to current technical regulations to receive imported LPG from ships or other vehicles. 115/2009/NĐ-CP on trading in liquefied petroleum gas: 1. as agreed in the relevant Petroleum Contract. this obligation only binds the contractor in case of successful exploration and commercial production thereafter.8 What restrictions (if any) apply to the transfer or disposal of natural gas development rights or interests? After the conclusion and approval of a Petroleum Contract but before any petroleum operation. 2. may be considered a property right under the Civil Code and therefore prima facie able to be pledged. Vietnam 2. 2. London . Transfer of such revenue is no longer subject to a separate remittance tax. and satisfying the conditions on transfer of capital and projects according to the investment law. Abandonment of petroleum wells The contractor must always include a preliminary plan of well abandonment into the general plan of production for each well or for the whole block under the Petroleum Contract. For leasing storehouses and ports for LPG exportation or importation:companies must own or co-own LPG storehouses with a total capacity of tanks of 1. legislation on security transactions does not expressly recognise the right to pledge such rights. the State. 2. B. With regard to LGP. companies engaging in LPG activities must have minimum storage capacity.13 Is there any legislation or framework relating to gas storage? If so. 2. At present there is no specific regulation on LNG storage.

GROUP-B PROJECTS VND750billion – 1. Owning or co-owning a wharf within the Vietnamese seaport system. the land use rights will be accounted for as equity of the project.CO. In absence of specific guidance on this issue. a construction project (subject to construction legislation) or a mix of the two. Having an LPG distribution system. 1. importer. Obtaining opinions of the competent agency on the ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. If the portion from the State budget is more than 50% of total investment costs. including member enterprises. In practice. the project will be subject to process of investment assessment and supervision. As noted above in question 4. branches. Traders acting as general agents shall maintain the minimum LPG circulation reserve equal to 3 days’ supply. 2.USD75million) GROUP-C PROJECTS Under VND 75 billion (app. Investors may separately own the pipelines themselves.75 million) 2. shops or automobile LPG-filling stations or LPG supply stations and at least 40 LPG-trading agents (general agent and agents or agents) that fully satisfy conditions for agents as required by law.000 m3 for storing imported LPG from ships or other vehicles. as construction for oil and gas extraction. USD 75 million) 4. Details of the basic design of an investment project on the construction of works. London WWW. In such case. These LPG bottles must be compatible with trademarks and brands legally registered. apply. PetroVietnam may directly. Vietnamese law does not clearly state whether a project of construction and operation of pipelines is considered “a petroleum project” (subject to petroleum legislation). responsible for contributing land use rights with the other investor(s) responsible for constructing the pipelines and associated infrastructure. Conditions for a trader engaging in LPG export / import: Having a business registration certificate. such land use rights can be considered de facto full property rights over the land in question in accordance with the terms of the particular land use rights granted. both legal frameworks will.5 trillion (app. including the investment necessity/objective and the total investment.75million . Such construction projects will fall into one of three classifications: GROUP-A PROJECTS Total investment over VND 1. limitations or rules applying in respect of cross-border sales or deliveries of natural gas (including LNG). 1. 2. 5. Appraisal of the Investment Project on the construction The investment study reports on the construction must contain: 4 Transportation 4.1 Outline any regulatory requirements. but LNG is considerably likely to be subject to the same conditions and regulations: A. legislation only provides limited terms in this area and more is expected to be adopted in due course. producer or processor or a grade-I LPG distributor) shall maintain the minimum LPG circulation reserve equal to 7 days’ supply for their distribution systems and annually increase this reserve so that by 2015 this reserve will be equal to at least 15 days’ supply.2 What Governmental authorisations (including any applicable environmental authorisations) are required to construct and operate natural gas transportation pipelines and associated infrastructure? Traders acting as general agents shall maintain the minimum LPG circulation reserve equal to 3 days’ supply. . B. USD3. including additional public tender requirements.1 Outline broadly the ownership. According to the ASMA Technical Assistance for the Revision of the Existing Legal and Regulatory Framework 2003. However. or specific terms. 4. Requirement of minimum LPG volume in storage (circulation reserves) Vietnam A pipeline land strip (the land area and the space within two boundaries of the pipeline land strip) will be assigned by the State to the investor who shall have the full right to use such land strips in the process of constructing. operating and maintaining the pipelines. B. in most cases. The following outlines in brief the process applicable in the case of no State capital involvement. the Government of Vietnam is currently pursuing the establishment of a legal and regulatory framework for gas transmission and distribution. take part in the project as a party to the contract and will be. Owning at least 300. While Vietnamese law only confers “land use rights” to investors (with the State retaining ultimate ownership of land). covering the right to engage in LPG export and/or import. US D3. The primary petroleum-related aspects applicable in this area have been outlined under questions 2. 1.UK 343 Vietnam LPG wholesalers (exporter. the process of project appraisal and approval that applies to a given investment project varies on whether or not State capital is involved.5 trillion (app. installing. and therefore the project will be classified as a “State budget-funded project”. in practice. Having an LPG bottling station with a certificate of satisfaction of LPG bottling conditions. The construction of pipelines is classified. 2. or through its subsidiaries. at present. organisational and regulatory framework in relation to transportation pipelines and associated infrastructure (such as natural gas processing and storage facilities). The following is only expressly for LPG.11 above. and built under planning and according to current technical regulations. Obligation of LPG circulation reserves LPG wholesalers shall maintain the minimum LPG circulation reserve equal to 7 days’ supply for their distribution systems and annually increase this reserve so that by 2015 this reserve will be equal to at least 15 days’ supply. having storehouses of a total tank capacity of at least 3.1.ICLG. A Investment Project on the construction (feasibility study report) Details of explanations of an investment project on the construction of works. for purposes of construction legislation. 3 Import / Export of Natural Gas (including LNG) 3.Duane Morris LLP LPG storehouse with a total capacity of tanks of at least 800 m3 to receive LPG from ships or other transport vehicles. 3. The following touches on predominant construction-related points. 1. or having entered into a contract for lease of a wharf for at least one year for receiving LPG ships.3 and 2.000 LPG bottles (excluding mini bottles).

LPG supply stations. LPG storehouses with a total capacity of tanks. approval of natural gas price. concerned ministries and branches and provincial-level People’s Committees in devising and publicising a national plan on development of LPG-trading establishments. Provincial People’s Committees devise plans on development of LPG-trading establishments. capacity reservation or facility expansions) allocated? An LPG distributor must satisfy the following conditions or obtain the following authorisations: 1. almost all distribution systems are currently State-owned. The National Strategy on Energy Development recommends diversifying modes of ownership and eliminating monopoly until 2020. how does an entity obtain the necessary land (or other) rights to construct natural gas transportation pipelines or associated infrastructure? Do Government authorities have any powers of compulsory acquisition to facilitate land access? Vietnamese law is silent about this issue. The Ministry of Industry and Trade assumes the prime responsibility for. 4.000 m3 or more. transportation and distribution cost. For group-B and group-C projects: Provincial-level Industry and Trade Services. and inspect and supervise the implementation of such plans after they are approved. ports for LPG exportation or importation which can accommodate ships of a tonnage of 5. can impose a duty on a competitors.” 5 Transmission / Distribution As noted above. 115/2009/NĐ-CP dated 2 November 2009. Decree No. this must be conducted within the framework proposed in the National Strategy on Energy Development: “Important responsibilities of management of natural gas are: grant of Transportation and Distribution permit.ICLG. access to gas transportation pipelines Theoretically. Land granted to foreign-invested investor entities will usually take the form of land lease. how are the costs (including costs of interconnection. the Competition Law company to grant access to other regulations have not been widely commercial sector.UK ICLG TO: GAS REGULATION 2011 . usually in the first instance via the Ministry of Industry and Trade. Appraisal and approval of technical designs and working drawing designs Construction permit Are parties free to agree the terms upon which natural gas is to be transported or are the terms (including costs/tariffs which may be charged) regulated? After the filing of an application. There are currently no legal provisions relating to co-operation or access between different transportation systems. C. though such used in practice in any Vietnam 2. 4.4 How is access to natural gas transportation pipelines and associated infrastructure organised? 5. Although the law does not prohibit private ownership. a construction permit shall be granted by Provincial People’s Committees for grade A and grade B construction projects and by district-level People’s Committees for other constructions. and how is co-operation between different transportation systems established and regulated? To date. Vietnamese law provides that the State manages all land on behalf of the people of Vietnam and. and inspecting and supervising the implementation of the approved planning.2 What Governmental authorisations (including any applicable environmental authorisations) are required to operate a distribution network? Vietnamese law is silent on this issue and in practice access must be negotiated on a case-by-case basis with PetroVietnam and the Government. Appraisal: once positive opinions have been obtained.3 In general. can the regulator or a new customer wishing to transport natural gas compel or require the operator/owner of a natural gas transportation pipeline or associated infrastructure to grant capacity or expand its facilities in order to accommodate the new customer? If so. but to date no such regulations have been issued. 4. ensuring their conformity with the national master plan. and coordinates with. the State does have power to compulsorily acquire land though subject to compensation obligations. including LPG production or processing plants. However.CO. then incorporate them in their local socio-economic development master plans.7 Vietnam will be legally recognised.6 Outline any third-party access regime/rights in respect of natural gas transportation and associated infrastructure. it is not known when the right to 344 WWW. LPGbottling stations. LPG storehouses with a total capacity of tanks and cisterns of 5.000 tonnes or more. However.1 Outline broadly the ownership. the investor must proceed to have the project formally appraised. For example. while land granted to domestic investors may either be in the form of lease or longterm ‘allocation’. 4. and cisterns of under 5. 5. a pipeline land strip will be allocated by the State to the project investor who shall have the full right to use such land strip in accordance with the particular terms of the relevant land use rights certificate granted.Duane Morris LLP Investment Project (officially within 10-20 working days): For projects group-A projects: The Ministry of Industry and Trade. the National Strategy on Energy Development encourages competition on the field implying freedom of agreement on terms and conditions of transportation of natural gas. 4. Grade-I LPG distribution: a business registration certificate. including specialised LPG-trading stores. covering the registration for LPG trading. as such. owning or co-owning an LPG storehouse with a total capacity of tanks of at least 800 m3 to receive LPG from ships or other transport vehicles. automobile LPG-filling stations. There are no specific regulations on this issue in Vietnamese law at present. organisational and regulatory framework in relation to the natural gas transmission/distribution network. technical standards. D.5 To what degree are natural gas transportation pipelines integrated or interconnected. assigns the Ministry of Industry and Trade to promulgate regulations on LPG trading agents. Obviously. Vietnam’s gas pipelines have been exploited independently from other systems and each other.000 m3.

3 Vietnam How is access to the natural gas distribution network organised? Art 47 of the Competition Law prohibits restriction to the access to the network for a company wishing to join the network and satisfying the conditions for admission or withdrawal. importer. LPG-trading agent having a business registration certificate. a certificate of satisfaction of security and order conditions granted by a competent police office.CO. 5. 5. measuring devices have been inspected and corrected under regulations. which is still valid. producer or processor or a grade-I LPG distributor) must maintain the minimum LPG circulation reserve equal to seven days supply for their distribution systems and annually increase this reserve so that by 2015 this reserve will be equal to at least 15 (fifteen) days’ supply.4 Can the regulator require a distributor to grant capacity or expand its system in order to accommodate new customers? Vietnam law does not expressly regulate this issue. Investors may have some recourse to the principle of non-discrimination set forth in Art 47 of the Competition Law for admission or withdrawal of a member of the network. 5. 3. and having a certificate of satisfaction of fire prevention and fighting conditions. organisational and regulatory framework in relation to natural gas trading. investors may find difficulties enforcing such provisions in practice. 2. having an LPG and bottled LPG storehouse of a capacity of at least 2. equipment subject to stringent requirements on automobile LPG filling safety has been inspected and registered under regulations.1 Outline broadly the ownership. There is no specific regulation for natural gas trading. 115/2009/NĐ-CP on LPG as described ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. measuring devices have been inspected and corrected under regulations. Moreover. and having entered into an agency contract of a term of at least 1 year.Duane Morris LLP owning at least 300. covering the registration for sale of bottled LPG. 5. Bottled LPG-sales outlets having a business registration certificate. Please include details of current major initiatives or policies of the Government or regulator (if any) relating to natural gas trading. and a slip of results of inspection of equipment of LPG supply stations subject to stringent safety requirements. trademarks and brands already registered with competent authorities under law. having an LPG distribution system consisting of bottled LPG-selling stores or automobile LPG-filling stations. which is still valid. which is still valid. however it is useful to refer to Decree No. with an eligible LPG wholesaler or general agent. However to the extent such activity would focus on State targets. covering the registration for LPG trading agency. and having an attached LPG distribution system. and at least 20 LPG-trading agents (general agent and agents or agents). having entered into a bottled LPG purchase contract of a term of at least 1 year. having an LPG-bottling station with a certificate of satisfaction of LPG bottling conditions. depending on the potential impact of the project on the environment. and having a certificate of satisfaction of fire prevention and fighting conditions and a certificate of satisfaction of security and order conditions granted by a competent police office. 6 Natural Gas Trading 6.ICLG. London WWW.000 LPG bottles of all kinds (except mini bottles).5 What fees are charged for accessing the distribution network. the procedures and obstacles are likely to be significant in practice.UK 345 Vietnam . Traders acting as general agents shall maintain the minimum LPG circulation reserve equal to three days supply. An investor may otherwise want to access an existing network through merger and acquisition activity. 6. if such refusal constitutes discriminatory treatment and places such company at a competitive disadvantage. However. subject to negotiation. Generally any fees would be negotiated on a case-by-case basis. 5. with an eligible agent or general agent or LPG wholesaler. covering the registration for LPG trading agency. Automobile LPG-filling stations having a construction permit accompanied with a project or design approved by a competent authority. having a bottled LPG-selling store or an automobile LPGfilling station. the Investor must obtain an Environment Impact Assessment or just make an Environmental Protection Commitment. and having entered into an agency contract of a term of at least 1 (one) year. 115/2009/NĐ-CP provides some framework on this issue through requirement of minimum storage in Art 52: LPG wholesalers (LPG exporter. and at least 10 agents.6 Are there any restrictions or limitations in relation to acquiring an interest in a gas utility. with an eligible LPG wholesaler. It is noted however that Decree No. or the transfer of assets forming part of the distribution network (whether directly or indirectly)? There is no express legal regulation on this matter and therefore these issues are subject to negotiation between any new prospective member and the network or otherwise specified in the network’s conditions for admission and withdrawal. due to an absence of detailed regulations on this relatively new field of law in Vietnam. LPG-trading general agent having a business registration certificate.000 LPG bottles or bottled LPG of all kinds (except mini bottles). Conditions on LPG supply stations having a construction permit accompanied with a project or design approved by a competent authority. and having a certificate of satisfaction of fire prevention and fighting conditions and a certificate of satisfaction of security and order conditions granted by a competent police office. consisting of bottled LPG-selling shops or LPG supply stations or automobile LPG-filling stations. 4. and are these fees regulated? There is very limited regulation on this matter in Vietnam.

thereby causing loss to customers.2 What range of natural gas commodities can be traded? For example. 7. organisational and regulatory framework in relation to LNG facilities.ICLG. or impeding technical or technological development. 1.e.Duane Morris LLP in part in questions 5. agreements to share consumer markets or sources of supply of goods and services. in the natural gas sector? 5. and collusion in order for one or more parties to win a tender for supply of goods and services. 3. agreements to impose on other enterprises conditions for signing contracts for the purchase and sale of goods and services or to force other enterprises to accept obligations which are not related in a direct way to the subject matter of the contract.4 Outline any third-party access regime/rights in respect of LNG Facilities. imposing disadvantageous conditions on customers. practices mentioned above applied for enterprise or group of enterprises in a dominant market position.3 Is there any regulation of the price or terms of service in the LNG sector? Where a petroleum product is sold to the public. 6. 8. 8. 3. 2.6 above. applying different commercial conditions to the same transactions aimed at creating inequality in competition. 3. and 4 enterprises have a market share of seventy five (75) percent or more in the relevant market.. What power or authority does the regulator have to preclude or take action in relation to anti-competitive practices? The Competition Law 2004 specifies a number of criteria of an anticompetitive conduct: A.1 – 5. Any enterprise or group of enterprises in a dominant market position shall be prohibited from carrying out the following practices: 1. impede or do not allow other enterprises to participate in the market or to develop business. mergers.e.6 above. purchased or sold. agreements which exclude from the market other enterprises which are not parties to the agreement.) in accordance with this Law. technological Vietnam There is no specific regulation on this issue. agreements which prevent. London . etc. thereby causing loss to customers. 7. 7. restraining production or distribution of goods or services. 3 enterprises have a market share of sixty five (65) percent or more in the relevant market. however as the construction of operation of LNG facilities may be subject to both petroleum and construction legislation. 3. its price will fall under a scale fixed by the Government and readjusted from time to time. The remaining points are prohibited irrespective of the market share of participants. to 346 WWW. 2. B.3 The Competition Council is equipped with the following powers to preclude and take action in relation to anti-competitive practices: (a) (b) to control the process of economic concentration (i. agreements to restrain technical or developments or to restrain investment. There are no specific regulations on this issue in Vietnam at present.1 – 5. 2. joint ventures. but it is useful to refer to LPG regulations generally which allows LPG to be traded at stations or bottled according to national standards. For regulations on trading of LPG.2 What Governmental authorisations are required to construct and operate LNG facilities? The agreements at points 1. Abuse of dominant market position A group of enterprises shall be deemed to be in a dominant market position if they act together in order to restrain competition and fall into one of the following categories: (a) (b) (c) 2 enterprises have a market share of fifty (50) percent or more in the relevant market. agreements to restrain or control the quantity or volume of goods and services produced. the natural gas commodity and the distribution thereof) be traded? Vietnam 4. or anti-competitive practices. 5. 4 and 5 above are prohibited when the parties to the agreement have a combined market share of thirty (30) per cent or more of the relevant market. please refer to questions 5. and abuse of monopoly position in order to change or cancel unilaterally a signed contract without legitimate reason.CO.2 above for general outline on relevant points. The authority responsible for the regulation of competition aspects is the Competition Council. 7. 2. to accept jurisdiction over files for request of exemption. limiting the market. 8 Competition 8. There are no specific regulations for LNG. fixing an unreasonable selling or purchasing price or fixing a minimum re-selling price goods or services.UK ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. however it is useful to refer to regulations on LPG for general principles. Agreements in restraint of competition agreements either directly or indirectly fixing the price of goods and services. 7 Liquefied Natural Gas 8. it is useful to refer to questions 2. selling goods or providing services below total prime cost of the goods aimed at excluding competitors. including the gas sector. There are no specific regulations on this. and preventing market participation by new competitors. who is responsible for every sector.1 Which Governmental authority or authorities are responsible for the regulation of competition aspects. 6. can only “bundled” products (i. 4.3 and 4. 7.1 Outline broadly the ownership. 6.2 zTo what criteria does the regulator have regard in determining whether conduct is anti-competitive? Any enterprise in a monopoly position shall be prohibited from carrying out the following practices: 1. imposing conditions on other enterprises signing contracts for the purchase and sale of goods and services or forcing other enterprises to agree to obligations which are not related in a direct way to the subject matter of the contract.

In any event.CO. including procedures applying in the context of disputes between the applicable Government authority/regulator and: participants in relation to natural gas development. 2. only one incorporated joint venture was created by Vietnam and Russia (Vietsovpetro). and the economic concentration is prohibited because the enterprises participating in the economic concentration have a combined market share in the relevant market of more than fifty (50) percent. transportation or associated infrastructure. The Petroleum Law only applies to Petroleum exploration and production activities carried out within the territory. PetroVietnam and contractors prefer to address their dispute to the Singapore International Arbitration Center (SIAC). The legal representative of enterprises participating in an economic concentration in the category required to provide notification stated above may conduct procedures for the economic concentration at the authorised State body in accordance with the laws on enterprises. the exclusive economic zone and the continental shelf. For other activities related to petroleum. joint-venture contract or other contractual forms. the legal representative of such enterprises must notify the administrative body for competition prior to carrying out the economic concentration. to which Vietnam is an official member: National Treatment (Art. 4): Equal treatment for nationals of all trading partners in the WTO. transportation or associated infrastructure or distribution assets? If so. to the body in the next higher hierarchy. for instance the Vietnam – US BTA provides a fuller mechanism of protection: Principle of National Treatment (Art. 10. But since Decree 48/2000/NĐ-CP only sets forth a model production-sharing contract. Principle of Fair and Equitable Treatment (Art. distribution or other) by foreign companies? The Model Contract encourages parties to the Petroleum Contract to submit their dispute to London Petroleum Institute. Within this scope of operations. A file for notification of an economic concentration Acceptance of jurisdiction over file for notification of economic concentration (within seven working days from the date of receipt) Reply to notification of economic concentration Principle of non-discrimination features prominently in GATT and GATS. 3): Each Party shall accord to nationals of the other Party treatment no less favourable than it accords to its own nationals with regard […] intellectual property rights. (c) (d) (e) 8. or proposed acquisitions of development assets. or if the decision is made by such head. and distribution network owners or users in relation to the distribution/transmission of natural gas. Carrying out economic concentrations 10 Dispute Resolution 4. processing or storage of natural gas. contractors must address their appeal to decisions firstly to the head of such Governmental body. and do not entail unreasonable time limits or unwarranted delays. 11): ensure that enforcement procedures of IP rights are not unnecessarily complicated or costly.Duane Morris LLP forward its opinion to the Minister of Trade for a decision or to submit the same to the Prime Minister for his decision. Does the regulator (or any other Government authority) have the power to approve/disapprove mergers or other changes in control over businesses in the natural gas sector. transmission and distribution and trading. it means that this kind of contract is a preference one.1 Are there any special requirements or limitations on acquisitions of interests in the natural gas sector (whether development. and this fits the international practice in the sector.2 To what extent is regulatory policy in respect of the natural gas sector influenced or affected by international treaties or other multinational arrangements? to investigate competition cases concerning practices in restraint of competition and unfair competitive practices. what criteria and procedures are applied? How long does it typically take to obtain a decision approving or disapproving the transaction? In the case where enterprises participating in an economic concentration have a combined market share in the relevant market of from thirty (30) percent to fifty (50) percent. To date. such as refining. to deal with and impose fines in respect of unfair competitive practices. to provide a written reply to the enterprise which submitted the file. 9. 3): Equal treatment for foreign and domestic individuals and companies. The procedure is as follows: 1. and to fulfil other duties in accordance with law. Minimum protection by WTO is normally widened by bilateral agreements.1 Provide a brief overview of compulsory dispute resolution procedures (statutory or otherwise) applying to the natural gas sector (if any). foreign investors can only carry out activities under a petroleum contract that may be signed in the form of a production- ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd.ICLG. the investment and company legislations will apply. If the dispute is between contractors and a Government authority.4 Vietnam sharing contract. In practice. then contractors can lodge a claim to the court to request review of the court over decisions made by Government authority. Vietnam’s Government has discretion to grant foreign ownership in excess of such commitments.UK 347 Vietnam . within a time limit of forty five (45) days from the date of receipt of a complete file for notification of an economic concentration. Any restrictions on foreign ownership stakes in a given sector are based on Vietnam’s WTO service sector commitments that generally follow a phased-in approach over time. Most Favoured Nation (Art. only after having received a written reply from the administrative body for competition that the economic concentration is not within the prohibited category. The written reply of the administrative body for competition must confirm that the economic concentration belongs to one of the following categories: (a) (b) the economic concentration does not fall within the prohibited category. The administrative body for competition shall be responsible. 3. London WWW. transportation pipeline and associated infrastructure owners or users in relation to the transportation. 9 Foreign Investment and International Obligations 9. If all appeals are unsuccessful.

36 0. Endnotes Endnote 1 Proven Reserves At end 2009 At end 1989 Trillion cubic metres Indonesia 2. the content of such documents are not readily made public.2 Is Vietnam a signatory to.38 1. dated 9 March 2006. Foreign arbitral awards may be enforced in theory but.91 0. it is unlikely that any foreign entities have obtained judgment against Government authorities pursuant to litigation before domestic courts to date. and Decision No.9 0. (ii) Unfortunately. in no more than 300 words.65 0.34 12.3% 49.1 0. that Vietnam will increasingly have to rely on gas imports to meet its increasing domestic demand.18 1.4 Pakistan 0.36 0.2% * Thailand 0.29 0. enforcement in practice is likely to be cumbersome and timeconsuming.2% 11.3% 38.5% 23.38 84.27 0. In terms of Vietnam’s long term policy strategy.6 0.26 0. With respect to domestic awards or judgments. London . and has it duly ratified into domestic legislation: the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.57 20. As Vietnam elects the unilateralism model in treaty law. Vietnamese courts may base on public policy to refuse recognition of foreign judgments or awards.9 Papua New Guinea 0. there are two key regulations governing master plan on oil and gas of Vietnam: (i) Decision No.62 At end 2008 Trillion cubic metres 3.0 Myanmar 0.4% 85. a treaty is effective and binding from date of signature of the Government without any requirement for a legislative body to ratify. special difficulties arise in practice considering question marks over the independence of the judiciary in Vietnam and power of State organs in particular to influence decisions. As with other countries.57 0.Duane Morris LLP Vietnam 10. It should be clear. and/or the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“ICSID”)? 10. a summary of any new cases.18 Trillion cubic feet Trillion cubic metres Share of total R/P ratio 112. dated 18 February 2009. against Government authorities or State organs (including any immunity)? Court cases are generally not publicised in Vietnam.43 0. enforcing foreign court judgments in Vietnam is all but impossible due to an absence of judicial recognition treaties for the vast majority of countries.44 15. vision to 2025.7 0.35 0.84 32. 11 Updates 11.1 0.2% 20. 386/QD-TTg.ICLG.UK ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd. 10.68 0.2 Other Asia Pacific 0.1 Please provide.23 0.especially questions of State monopoly vs.9 (Source: BP Statistical Review of World Energy. or seeking to enforce judgments or awards.6 Vietnam _ 0. Predictions about Vietnam’s long-term strategy regarding gas development . However. vision to 2025. of the Prime Minister approving master plan for development of oil and gas sector until 2015.17 0.CO.7% 44.5 3. trends and developments in Gas Regulation Law in Vietnam.34 0.70 0. 2010) 348 WWW.3 Is there any special difficulty (whether as a matter of law or practice) in litigating. 233/QD-TTg.55 At end 1999 Trillion cubic metres 2.44 0.36 12. With regards to offshore cases.3 Malaysia 1. again.61 2. privatisation and of competitive market prices .are thus hard to make.0 0.4 Have there been instances in the natural gas sector when foreign corporations have successfully obtained judgments or awards against Government authorities or State organs pursuant to litigation before domestic courts? Vietnam Vietnam is a signatory to both the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and ICSID.48 2.23 0.56 24.1 2. however. of the Prime Minister approving strategy for development of oil and gas sector until 2015.

0% Vietnam 6.9 1.0 4.UK 349 Vietnam .6 3.0 10.3% Other Asia Pacific 7.5 36.3% 2.9 2.3 26.8 7.4% 0.2 12.8 37.6 0.7 13.8 30.3% 1.1 12. 2010) Endnote 3 Vietnam annual gas production ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd.3 64.3% Thailand 23.6 64.4 11.7 71.1% Myanmar 12.0 28.7 24.6 69.6 13.9 7.0% 0.5 37.9 8.1 36.1 3.4% 0.1 7.5 12.9 6. London WWW.Duane Morris LLP Endnote 2 Production* Billion cubic meters 2005 2006 2007 2008 2009 Change 2009 over 2008 3.7% 0.ICLG.3 67.5% (Source: BP Statistical Review of World Energy.4% Pakistan 3.8 4.2 70.CO.9 62.1% Papua New Guinea 35.4% Malaysia 61.1 63.5 13.6% 1.5% Vietnam 2009 share of total Indonesia 71.0 1.7 4.5 -6.7 -3.

New Zealand. Throughout this expansion. Massmann is the only foreign lawyer in Vietnam who is presenting to the National Assembly of Vietnam in Vietnamese language and teaching International law in Vietnamese language at the Ministry of Justice in Hanoi. Many of the firm’s attorneys come to Duane Morris after having held senior positions in government agencies and large corporations. 13th Flor 83B Ly Thuong Kiet Street Hoan Kiem District. Hanoi Vietnam Vietnam Tel: Fax: Email: URL: +84 8 3824 0231 +84 4 3946 1311 gtcooper@duanemorris. and a graduate of the University of Canterbury in Christchurch. where lawyers work with each other to better serve their clients Lawyers who are leaders in a range of legal disciplines and have diverse backgrounds join Duane Morris in order to use the latest technology. cultural and charitable organisations and with community groups across the country.ICLG.CO.duanemorris.uk Giles Cooper practices in the area of corporate law with a focus on international law in Southeast Asia. London . Duane Morris’ clients also benefit from the contributions of professional-level support staff who maintain the firm’s technological and administrative infrastructure and enable lawyers to focus on providing valuable counsel and service to their clients. Duane Morris now has offices in many major markets and continues to expand across the country and overseas. Leadership and Experience Duane Morris lawyers hold leadership positions in bar associations. retaining and promoting talented female and minority lawyers. Duane Morris has long been committed to recruiting.uk Tel: Fax: Email: URL: +84 4 3946 2205 +84 4 3946 1311 omassmann@duanemorris. second state exam 1997. professional support staff and other resources in pursuit of clients’ goals. securities. offers innovative solutions across diverse industries in the United States and internationally to address the legal and business challenges of today’s evolving global markets .com www. Certificate of Professional Practice. New Zealand. mergers and acquisitions. Duesseldorf Germany. Hanoi Vietnam Oliver Massmann Duane Morris Vietnam LLC Unit V1307/1308. a full-service law firm of more than 650 attorneys. He is a barrister and solicitor of the High Court of New Zealand and a registered foreign lawyer in Vietnam. contract negotiation and drafting.UK ICLG TO: GAS REGULATION 2011 © Published and reproduced with kind permission by Global Legal Group Ltd.co. Technology and Infrastructure Trade publications have placed Duane Morris in the upper echelon of firms in terms of utilizing technology. Growth and Culture Evolving from a partnership of prominent lawyers in Philadelphia more than a century ago. accessing sophisticated research software. Cooper is a graduate of Victoria University in Wellington. first state exam and Ministry of Justice.co. Throughout its more than 100-year history. and other knowledge-sharing tools. Mr. Institute of Professional Legal Studies. Mr. 13th Flor 83B Ly Thuong Kiet Street Hoan Kiem District. Duane Morris has fostered a collegial culture. Mr. privatisation and equitisation. Areas of Practice: International Commercial and Corporate Law Construction Law Securities and capital markets Labour and Employment Law Major projects Education: University of Victoria. Duane Morris LLP. matters related to oil and gas companies and telecoms. (Hons).duanemorris. He is admitted to the Bar Association in Berlin and a licensed foreign lawyer in Vietnam. 1996 Oliver Massmann practices in the area of corporate international taxation and on power/water projects. 350 WWW. as well as in educational. Mr. and general commercial matters for multinational clients in relation to investment and doing business in Vietnam. Massmann is a 1994 graduate of Bochum Law University. New Zealand). The firm’s leadership believes this culture is truly unique among large law firms. banking and finance.B.com www. and employment law. Cooper has experience with foreign investment and commercial law related to construction. and that outstanding legal work is best accomplished by skilled professionals who respect each other and work well together. This range of experience is further enriched by the diverse backgrounds of the firm’s attorneys.Duane Morris LLP Vietnam Giles Cooper Duane Morris Vietnam LLC Unit V1307/1308. mergers and acquisitions. information-rich databases. 1998 University of Canterbury (Christchurch. Duane Morris remains committed to preserving the collegial culture that has attracted so many talented attorneys. LL. many of whom hold leadership roles at the firm. Hundreds of lawyers working around the globe quickly communicate and collaborate using the firm’s integrated computer network.

co.The International Comparative Legal Guide to: Gas Regulation 2011 Other titles in the ICLG series include: Business Crime Cartels & Leniency Class Actions Commodities and Trade Law Competition Litigation Corporate Governance Corporate Recovery & Insolvency Corporate Tax Dominance Employment & Labour Law Enforcement of Competition Law Environment Law & Climate Change International Arbitration Litigation & Dispute Resolution Merger Control Mergers & Acquisitions Patents PFI / PPP Projects Pharmaceutical Advertising Product Liability Public Procurement Real Estate Securitisation Telecommunication Laws and Regulations To order a copy of a publication.uk . please contact: Global Legal Group 59 Tanner Street London SE1 3PL United Kingdom Tel: +44 20 7367 0720 Fax: +44 20 7407 5255 Email: sales@glgroup.uk www.ICLG.co.

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