Amendment of the Petroleum Law- Urgent and important need

Ensuring the uniformity of the legal system

According to National Assembly deputy Nguyen Ngoc Bao (Bac Ninh), in the context that crude oil production has gradually decreased in the 2016-2020 period, the compensating coefficient for oil and gas reserves has decreased at an alarming rate, the existing field reserves have reached stages of deep reduction; There should be mechanisms and policies to attract investment as well as a legal basis to promote oil and gas exploration and production.

Opinion of the National Assembly deputies that, in the process of perfecting the institution; many policies, many new laws have been promulgated related to the Law on Petroleum and oil and gas activities such as the Law on Investment, the Law on Enterprises, the Law on Management of State Investment in Enterprises or the Law on Bidding, the Law on Construction. and other laws also have an impact. Therefore, the amendment of the Petroleum Law this time to ensure the uniformity in the legal system is very necessary.

There should be mechanisms and policies to attract investment as well as a legal basis to promote oil and gas exploration and production activities.

Clarifying the concerns of the delegates, Minister of Industry and Trade Nguyen Hong Dien said that the drafting agency kept the name of the law project as the Petroleum Law (amended) to ensure the continuity of the law. laws on oil and gas, does not affect oil and gas activities, signed oil and gas contracts, especially not to cause misunderstandings with existing contractors.

Commenting on the content of the draft Law, the National Assembly deputies said that the draft was consistent with the provisions of the 2013 Constitution; compatible with relevant international treaties to which Vietnam is a contracting party. The Basic Law project dossier must ensure the provisions of the Law on Promulgation of Legal Documents. To ensure the effectiveness of the Law after it is promulgated, the delegates proposed to review and complete the draft Decree detailing a number of articles of the Law and a tentative list of guiding documents. need to be issued.

In addition, supplementing clear and specific provisions in Article 4 of the Law on the principle of ensuring specificity in basic investigation of oil and gas and upstream oil and gas activities complying with the provisions of the Law on Oil and Gas. gas; ensuring the consistency and synchronism of the legal system with respect to the contents related to the Law on Construction, the Law on Management and Use of State Capital invested in production and business at enterprises, the Law on Bidding Law on Public Investment.

Confused about the incentive mechanism?

Some National Assembly deputies said that currently, the Law project is designing two incentive mechanisms: ordinary incentives and special incentives, however, special incentives only activate when normal incentives do not. achieved, this easily prolongs the procedure time, the process of bidding, finding investors, reducing the attractiveness and effectiveness of the incentive mechanism. Therefore, the drafting committee needs to study to apply special incentives as an additional option, activated in parallel, to improve efficiency in terms of time as well as economic efficiency.

Regarding tax incentives, National Assembly deputy Pham Thuy Chinh (Ha Giang) said that the draft Law on tax policies is reduced compared to previous regulations and at a time when crude oil prices are rising. , is unstable, so it is recommended that the drafting agency need to report more on the situation forecast, review tax policies on the basis of careful consideration, assess the impact of tax reduction adjustment.

Regarding clauses 2 and 3 of Article 47 stipulating tax rates, the National Assembly deputies realized that this detailed regulation is different from those in the tax law, which will lead to breaking the unity, compatibility, and uniformity. with the current tax legal system. Therefore, the drafting agency needs to study more opinions on ensuring the consistency and compatibility of the Petroleum Law in the legal system and need to supplement regulations on the time limit for enjoying tax incentives in accordance with regulations. of the Investment Law.

One of the important contents of the Law project is to add a chapter related to basic investigation of oil and gas, however, investment incentives only apply to oil and gas activities, not including oil and gas activities. basic investigation. National Assembly Representative Phan Duc Hieu (Thai Binh) suggested that the drafting committee study and consider applying incentives for both basic investigation activities to mobilize more resources for this activity…



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