REGULATIONS ON REMOVAL OF PETROLEUM ACTIVITIES
On December 21, 2017, the Prime Minister issued the Decision No. 49/2017/QD-TTg on removal of installations, equipment and facilities serving petroleum activities.
This Decision points out clearly that In the stage of oil and gas field prospecting and exploration, organizations and individuals are obliged to remove petroleum installations serving oil and gas prospecting and exploration activities when they are no longer needed or used for petroleum activities according to annual work programs and budget funds.
Within 1 year from the time of exploiting the first oil and gas flow, organizations and individuals shall set up the financial obligation security fund for removal of petroleum installations according to the approved plan on removal of petroleum installations. Organizations and individuals that currently exploit oil and gas but have not yet set up the financial obligation security fund for the removal of petroleum installations, they shall set up this fund immediately from February 12, 2018.
However, In case the signed petroleum contracts contain specific agreements on the financial security obligation which are different from the provisions regarding the setting up of the financial obligation security fund for the removal of petroleum installations, such agreements shall prevail.
This Decision takes effect on February 12, 2018.
