THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
34/2001/ND-CP
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Hanoi,
July 06, 2001
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DECREE
PROMULGATING THE REGULATION ON BIDDING FOR OIL AND GAS
PROSPECTION, EXPLORATION AND EXPLOITATION PROJECTS
THE GOVERNMENT
Pursuant to the Law on Organization of the
Government of September 30, 1992;
Pursuant to the July 6, 1993 Petroleum Law and the June 9, 2000 Law Amending
and Supplementing a Number of Articles of the Petroleum Law;
At the proposal of the Minister of Planning and Investment,
DECREES:
Article 1.- To
promulgate together with this Decree the Regulation on bidding for oil and gas
prospection, exploration and exploitation projects.
Article 2.- This Decree
takes effect 15 days after its signing.
Article 3.- The Ministry
of Planning and Investment shall assume the prime responsibility and coordinate
with the Ministry of Finance and the concerned ministries and branches in
guiding the implementation of this Decree.
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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai
REGULATION
ON BIDDING FOR OIL AND GAS PROSPECTION, EXPLORATION AND
EXPLOITATION PROJECTS
(Promulgated together with the Government’s Decree No. 34/2001/ND-CP of July
6, 2001)
Chapter I
GENERAL PROVISIONS
Article 1.- Scope of
regulation
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Article 2.- Objects of
application
This Regulation applies to the bidding for oil
and gas prospection, exploration and exploitation projects in mainland areas
and offshore blocks, including the areas already returned under the provisions
of Article 19 of the Petroleum Law, for which partners have not yet been
selected or oil and gas contracts have not been signed.
Organizations and individuals that want to sign
oil and gas contracts in the forms prescribed in Article 15 of the Petroleum
Law shall all have to comply with the provisions of this Regulation.
Article 3.- Term
interpretation
In this Regulation, the following terms shall be
construed as follows:
1. "Bidders" mean organizations,
individuals and oil and gas conglomerates that register for participation in
bidding for oil and gas prospection, exploration and exploitation projects.
2. "Bid-soliciting party" means the
agency organizing the bidding as specified in Article 21 of this Regulation.
3. "Minimum workload commitment and minimum
financial commitment" mean the minimum workload and minimum expense amount
corresponding thereto, which a bidder estimates and commits itself to fulfill
in the first stage of the prospection and exploration period in the oil and gas
contract.
4. "Oil and gas conglomerate" means a
combination of 2 or more organizations and/or individuals, whereby at least one
organization or individual is carrying out at least two contracts on oil and
gas prospection, exploration and exploitation anywhere, which is established on
the basis of agreement for participation in bidding for oil and gas
prospection, exploration and exploitation projects in Vietnam.
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Article 4.- Bidding
forms
The bidding forms shall be applied on the
principles of wide-range international competition without the
pre-qualification step. All organizations and individuals meeting the conditions
mentioned in Article 5 of this Regulation shall be entitled to participate in
bidding.
Article 5.- Conditions
for bid participation
Bidders shall have to satisfy the following
conditions:
- Having financial and technical capabilities as
well as professional experiences in the field of oil and gas activities.
- Currently performing at least 2 oil and gas
prospection, exploration and exploitation contracts anywhere.
Organizations and individuals that fail to
satisfy the above-said conditions but want to participate in oil and gas
activities in Vietnam shall have to associate with the qualified organizations
and individuals to form an oil and gas conglomerate according to the provisions
in Clause 4, Article 3 of this Regulation. In this case, the qualified
organizations and individuals shall represent all the concerned parties in the
oil and gas conglomerate to participate in bidding.
Article 6.- Bidding
norms
The bidding norms stated in a bidding dossier
include:
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- The minimum workload commitment and minimum
financial commitment.
Based on the concrete potential of each area or
each block, the Prime Minister may decide to add one or a number of other
bidding norms such as the participation of Vietnam Oil and Gas Corporation, the
oil and gas expense recovery rate, signature commission, production commission,
document reference charge and training expense.
The rates of natural resource tax, enterprise
income tax and other payable taxes shall comply with the law provisions, not be
subject to bidding and be announced in the bidding dossiers.
Chapter II
BIDDING PROCEDURES
Article 7.- Bidding
procedures
The bidding procedures include the following
steps:
- Elaboration and approval of the bidding plan;
- Notification of the invitation for bids;
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- Distribution of bidding dossiers;
- Reception, opening and evaluation of bids;
- Appraisal, approval and announcement of
bidding results;
- Negotiation on the oil and gas contract;
- Ratification and signing of the oil and gas
contract.
Article 8.- Bidding plan
The bid-soliciting party shall elaborate a
bidding plan for areas or blocks, send it to the Ministry of Planning and
Investment for appraisal and submission to the Prime Minister for approval.
The bidding plan shall include the following
contents:
- The preliminary evaluation of the oil and gas
potential of each area or block;
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- The bidding norms;
- The bid-evaluation method.
Article 9.- Notification
of the invitation for bids
Based on the already approved bidding plan, the
bid-soliciting party shall issue a bid-invitation notice. The bid-invitation
notice shall be published for 10 consecutive days on two daily papers and on
information network in Vietnamese and English languages. It may also be sent
directly to organizations and individuals interested in blocks open for bid
invitation.
The bid invitation notice shall consist of the
list of areas or blocks open for bid invitation, their coordinates and
boundaries as well as the maps thereon; the timetable for document reference
and other details on the bid-invitation procedures.
Article 10.-
Registration of bid participation
The bidders shall send the bid-soliciting party
bid-participation registrations, which are made according to the form set by
the latter. The time limit for the registration of bid participation shall not
exceed 60 days as from the last day of publishing the bid-invitation notice.
When registering bid participation, the bidders
shall have to explain their financial and technical capabilities and supply
documents on the formation of the oil and gas conglomerate, if such a
conglomerate participates in the bidding.
The bidders may receive the bidding dossiers and
have the right to access to the documents already listed in the bidding
dossiers after registering bid participation.
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Based on the already approved bidding plan, the
bid-soliciting party shall prepare bidding dossiers and distribute them to the
bidders.
The contents of the bidding dossiers include:
1. The bidding norms prescribed in Article 6 of
this Regulation;
2. The bid evaluation method prescribed in
Article 16 of this Regulation;
3. The timetable of the bidding process and
other details on bidding procedures;
4. The list of basic documents and information
on the areas or blocks open for bid invitation.
Article 12.- Bids
Bids shall be prepared by the bidders based on
the bid-soliciting party’s requirements in the bidding dossiers. A bid’s contents
include:
1. The bidder’s offers regarding the bidding
norms prescribed in Article 6 of this Regulation;
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Each bid shall be made in two copies in
Vietnamese and English languages. The currency used in the bids shall be US
dollar.
The bidders shall send their bids to the
bid-soliciting party within 60 days as from the date of distributing the
bidding dossiers. The bids shall be considered valid when they meet all the
requirements of the bidding dossiers and are submitted within the prescribed
time limit. Those bids submitted late without notification made 15 days before
the prescribed time limit and without acceptance by the bid-soliciting party
shall be considered invalid.
Article 13.- Bid
opening
The bid-soliciting party shall have to organize
bid opening strictly according to the time prescribed in the bidding dossiers.
Participants in the bid opening include the representative of the
bid-soliciting party and members of the bid-evaluating team as specified in
Article 15 of this Regulation. The bidders�
representatives may also attend the bid opening.
Article 14.- Keeping
confidentiality of bids
The bid-soliciting party and bid-evaluating team
shall have to manage bids according to the regime of managing
"confidential" dossiers and ensure the confidentiality of all
information in the bids throughout the bidding process. All supplements made by
bidders to already opened bids shall be invalid and shall not be considered.
Article 15.-
Organization of bid evaluation
The bid-soliciting party shall set up a
bid-evaluating team, consisting of the bid-soliciting party�s specialists. If deeming
necessary, the bid-soliciting party may invite specialists from ministries and
branches to join the bid-evaluating team. The working regulation of the
bid-evaluating team shall be stipulated by the bid-soliciting party. The bid
evaluation shall be conducted within 20 working days as from the date of bid
opening.
Article 16.- Evaluation
of bids
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The bids shall be ranked according to the
bid-evaluation results. The first-ranking bidder shall be the bid winner and
entitled to negotiate an oil and gas contract with Vietnam Oil and Gas
Corporation. Where the two parties fail to reach agreement on the oil and gas
contract within the time limit prescribed in Article 19 of this Regulation or
the bid winner voluntarily withdraws, the second-ranking bidder shall be
invited to negotiate the oil and gas contract on the basis of the conditions
offered by such bidder.
Article 17.- Appraisal
of bidding results
The Ministry of Planning and Investment shall
assume the prime responsibility for appraising the bidding results. The
appraisal of the bidding results shall be conducted by an inter-branch working
team, consisting of representatives of the Ministries of: Planning and
Investment; Finance; Justice; Science, Technology and Environment, and
Construction; the State Bank of Vietnam and the Government’s Office. The
working regulation of the inter-branch working team shall be stipulated by the
Ministry of Planning and Investment. The appraisal of the bidding results shall
be conducted within 15 working days as from the time the documents related to
the bidding results are fully received.
The Ministry of Planning and Investment shall
submit to the Prime Minister the bidding result-appraisal report.
Article 18.-
Notification of the bidding results
The bid-soliciting party shall notify the bidders
of the bidding results and notify the bid winner of the plan for negotiation of
the oil and gas contract according to the provisions of the Petroleum Law.
Article 19.-
Negotiation of the oil and gas contract
Vietnam Oil and Gas Corporation shall have to
negotiate with the bid winner on the oil and gas contract on the basis of the
bidding norms in the bid already appraised and approved according to Article 17
of this Regulation. The negotiation of the oil and gas contract shall be
conducted within 90 days as from the date of notification of the bidding
results. Past this time limit, if the negotiation of the oil and gas contract
with the bid winner has not yet been completed, Vietnam Oil and Gas Corporation
shall report such to the Prime Minister, asking for permission to start the
negotiation with the second-ranking bidder or cancel the bidding results and
reorganize the bidding. In special cases, the bid-soliciting party may ask for
the Prime Minister’s permission to prolong the negotiation process. The
prolonged duration of negotiation shall not exceed 60 days after the
prolongation is permitted by the Prime Minister.
Chapter III
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Article 20.- Procedures
for bidder appointment
The bidder appointment shall be conducted
according to the following steps:
- The bid-soliciting party shall submit to the
Prime Minister the bidder appointment, clearly stating the area or block
subject thereto, the reasons therefor, the to be-appointed partner and the
bid-assignment norms and conditions.
- The Prime Minister shall consider and decide
the bidder appointment based on the appraisal report of the Ministry of
Planning and Investment and the written opinions of the concerned agencies.
- To negotiate the oil and gas contract.
Chapter IV
IMPLEMENTATION
PROVISIONS
Article 21.- The
bid-soliciting party
The bid-soliciting party is the bid-organizing
body, having the responsibility to elaborate the bidding plan, prepare and
distribute bidding dossiers, supply documents and information on the block open
to bidding to bid-participating organizations and individuals, receive and
manage bids, organize bid evaluation and negotiation of oil and gas contracts
after the bidding results are approved. Pending a new decision of the Prime
Minister, the Vietnam Oil and Gas Corporation shall act as the bid-soliciting
party.
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Bidders shall not have to pay guarantee for bid
participation.
Article 23.-
Implementation effect
This Regulation shall apply to the selection of
partners for signing oil and gas contracts in order to implement oil and gas
prospection, exploration and exploitation projects.
The Bidding Regulation issued together with
Decree No. 88/1999/ND-CP of September 1, 1999 and Decree No. 14/2000/ND-CP of
May 5, 2000 shall not apply to the bidding for oil and gas prospection,
exploration and exploitation projects.
Article 24.- Inspection
and handling of violations
The bid-soliciting party shall have to observe
this Regulation. The bidding result-appraising agencies shall have to inspect
such observance through the process of appraising the bidding results so as to
report thereon to the Prime Minister for consideration and handling. The report
on the Regulation observance shall constitute a separate session of the bidding
result-appraisal report. All violations of the Regulation shall be handled
according to current legislation.