Decision No. 04/2015/QD-TTg dated January 20, 2015 of the Prime Minister on petroleum operational safety management

THE PRIME MINISTER

Decision No.04/2015/QD-TTg dated January 20, 2015 of the Prime Minister on petroleum operational safety management

Pursuant to the Law on Government Organization dated December 25, 2001;

Pursuant to the Law on Petroleum dated December 18, 2013;

After considering the request of the Minister of Industry and Trade,

The Prime Minister hereby promulgates the Decision on the oil and gas operational safety management

Chapter I

GENERAL PROVISIONS

Article 1. Scope of application and applicable entities

1. This Decision provides provisions on the safety management in petroleum industry operations including search, exploration, mining development, extraction, mine demolition, storage, transportation of oil and gas, and oil refining, chemistry, oil and gas processing and beneficiation, also inclusive of technical services directly supporting these operations which are rendered on lands and territorial waters of the Socialist Republic of Vietnam.

2. This Decision shall apply to organizations, individuals and administrative agencies engaged in petroleum industry operations carried out on lands and territorial waters of the Socialist Republic of Vietnam.

Article 2. Interpretation of terms

Terms used herein shall be construed as follows:

1. Safety activity refers to the implementation of organizational and technical measures to be taken to prevent any emergency or accident to protect humans, environment and property.

2. Petroleum facilities include floating instruments, a complex of mobile or stationary equipment or structures which have been developed, provided and installed on lands and territorial waters in order to support oil and gas operations.

3. Competent administrative agency refers to the Ministry of Industry and Trade, Ministries and ministerial-level agencies, Governmental bodies, People’s Committees of centrally-affiliated provinces, cities and others in accordance with laws or the Government’s delegation of authority.

4. Organization, individual refers to the administrator, contractor, and other domestic and foreign entities directing oil and gas industry operations.

5. Emergency and/or incident refers to an event that happens incidentally, and causes or likely leads to an accident.

6. Accident refers to an emergency resulting in fatalities, missing or injured persons; leading to damage to property or environment; influencing production activities at petroleum structures or facilities.

7. Risk refers to the combination of probabilities that emergencies or accidents may happen, and their consequences.

8. Risk assessment refers to the careful examination of potential risks based on acceptable levels of risk and the introduction of measures sufficient to reduce risks to a reasonable and appropriate level.

9. Risk analysis refers to the systematic identification and classification of risks to humans, environment and property.

10.Conversion of construction works refers to a change made to the configuration, features and use of a structure.

Article 3. General provisions on petroleum operational safety management

1. A single organization or individual must ensure that all of gas and oil operations will be carried out in a safe manner in accordance with this Decision and other relevant laws, regardless of circumstances under which this organization or individual hires contractors to work for them.

2. Employees are obliged to comply with regulations and processes whereby the safety for humans, equipment is ensured and environment is protected.

Chapter II

CONTENT, RESPONSIBILITY OF ORGANIZATION OR INDIVIDUAL FOR SAFETY MANAGEMENT

Article 4. Safety management materials

1. Organizations or individuals shall be responsible for creating the following materials on safety management:

a) Safety management program;

b) Risk assessment report;

c) Emergency response plan.

2. The safety management program shall comprise the following main contents:

a) Safety policies and objectives;

b) Safety activity arrangement and assignment of duties to perform safety activities;

c) Safety training program; requirements for qualifications and competencies of employees;

d) List of legislative documents, national technical regulations, national standards, safety regulations, International Agreements to which Vietnam is a signatory or other standards in conformity with the generally accepted international convention on the oil and gas industry;

dd) Compliance assessment including statutory requirements (license for or certificateof technical quality, safety and environment protection, etc.);

e) Contractor safety management program.

3. The risk assessment report shall comprise the following main contents:

a) Determination of purposes and objectives of risk management;

b) Description of operations and facilities or structures;

c) Qualitative and quantitative risk determination, analysis and assessment;

d) Risk minimization measures.

4. Emergency response plan

The emergency response must be based on the result produced from risk assessment activities, including the following contents:

a) Description and classification of emergencies that might occur;

b) Organization chart, responsibility assignment, personal responsibility, system for alerting emergencies, accidents or exposure to dangerous situations;

c) Processes for responding to specific emergencies;

d) Description of internal and external resources which are ready or mobilized for effective emergency response;

dd) Addresses used for contact and communication with internal affiliates and reporting to relevant competent administrative agencies in relation to the emergency response;

e)Plan for emergency response training and drills;

g) Plan for rehabilitation of facility operations, including investigating, assessing causes and consequences in order to restore and improve the safety level for facilities or structures.

The emergency response plan must correspond with thenational emergency response system of the national committee on response to emergencies, natural disasters, search and rescue, and of specific local authorities and Vietnam National Oil and Gas Group (applicable to affiliates of Vietnam National Oil and Gas Group, petroleum joint ventures and contractors).

Organizations or individuals carrying out oil and gas industry operations should collaborate in devising the general emergency response plan.

5. Materials stipulated in Clause 1 of this Article must be created, filed to superior-level administrative agencies (when appropriate) for their consideration and submitted to the Ministry of Industry and Trade for approval prior to commencement of petroleum operations, development, conversion, demolition of petroleum facilities or structures after extraction or upon completion of projects.

As for oil and gas operations carried out by the Vietnam National Oil and Gas Group, affiliates of the Group and petroleum contractors (the Vietnam National Oil and Gas Group known as a party signing the petroleum contract), materials should be prepared for submission to the Vietnam National Oil and Gas Group for consideration prior to application for the approval granted by the Ministry of Industry and Trade.

Other organizations or individuals carrying out gas and oil operations must send their materials in person to the Ministry of Industry and Trade to apply for their approval.

6. Acceptance of materials on safety management

a) Required documentation

- Application for acceptance signed by the head of the organization (the Form No.01 enclosed herewith);

- 03 (three) sets of documents on safety management in accordance with Clause 1 of this Article (in Vietnamese) signed by the head of the organization;

- Documentation sent to the Ministry of Industry and Trade in person or by mails.

b) Verification council

The Ministry of Industry and Trade shall issue the decision to establish the Assessment Council to examine materials on safety management. The number of members in the Council varies depending on characteristics, features and extent of oil and gas industry operations but are restricted to a minimum of 07 persons.

c) Verification process

- Consider the relevance and accuracy of contents of materials. When necessary, the Council can carry out the on-site inspection;

- Establish the minutes of the verification meeting (complete the Form No.02 enclosed herewith);

- Based on the minutes of the verification meeting, the Ministry of Industry and Trade can notify in writing organizations or individuals applying for consent to justification and modification requirements to clarify contents of materials. (complete the Form No. 03 of the Appendix enclosed herewith). The written notification should clearly state which contents will be justified or modified;

- Prepare the report on the verification result for submission to the Minister of Industry and Trade for consideration and decision to grant their consent (complete the form No. 04 of the Appendix enclosed herewith);

- Based on the report on the verification result, the Minister of Industry and Trade shall issue their decision to accept these materials (complete the form No. 05 of the Appendix enclosed herewith);

d) Verification time limit

- Verification duration: 20 (twenty) working days from the date on which the Ministry of Industry and Trade receives all valid materials;

- Time limit for issuance of the acceptance decision: 05 (five) working days after receiving the report on the verification result.

Article 5. Safety management system

1. Organizations or individuals must set up, maintain and develop the safety management system with assurance that all of gas and oil industry operations must be planned, implemented and maintained in conformity with requirements defined in this Decision and other relevant legal regulations.

2. The safety management system must ensure that all risks incurred in all operational stages such as design, invention, engineering, installation, test run, operation and demolition will be controlled.

3. The safety management system must be updated on a regular basis; updated information must be disseminated to relevant employees.

4. The safety management system shall mainly focus on:

a) Policies, objectives pertaining to the occupational safety and environmental health, and the program or plan for fulfillment of these objectives;

b) Updated list of relevant legislative documents;

c) Specific requirements for implementation of legal regulations on occupational safety and environmental health, including:

- Procedures for operation, handling of breakdowns and maintenance of facilities, machinery and equipment;

- Safety regulations; safety warning sings mounted on production line, machinery, equipment, raw materials, chemicals and other tasks subject to strict safety standards; management and storage of materials and reports;

- Management, examination, inspection and certification of technical quality, safety, and environment protection for facilities, machinery, equipment, hazardous chemicals in accordance with applicable laws;

- Safety training;

- Requirements for qualifications and competencies relevant to specific job positions;

- Evaluation of the result of implementation of safety management programs and solutions to improving or enhancing the safety management efficiency.

d) System of safety activity arrangement: Responsibility assignment, duty performance and reporting channels;

dd) Contractor management: The contractor’s competence in safety, health and environment management must be controlled with assurance that it must be corresponding to the safety management system of organizations or individuals;

e) All of organizational, technical and technological changes and other requirements influencing risk levels must be updated, evaluated and controlled in order to ensure the continuality and consistency for the safety management system.

Article 6. Risk management

1. Organizations or individuals must ensure that all risks to all of facilities, production lines, machinery, equipment, chemicals or hazardous materials will be identified, analyzed and evaluated.

2. Risk management activities shall be composed of:

a) Qualitative and quantitative assessment of risks incurred in all stages of oil and gas operations, based on which measures to control and reduce risks shall be applied as well as it should be established that all risks fall within acceptable levels in accordance with national technical regulations introduced by the Ministry of Industry and Trade;

b) The report on the risk assessment must be updated every 5 years or when there is conversion or change of operational technology and organization. This is aimed at making the decision on oil and gas operational safety;

c) Organizations, individuals should identify which specific positions or requirements may be highly exposed to risks and need safety concerns during operations in order to take risk minimization measures.

Article 7. Emergency response

1. Organizations or individuals must establish and maintain the emergency response system whereby necessary response measures shall be implemented in an efficient manner in case of incidents or accidents that may cause harm to humans, environment or property. Given the severity of emergencies or accidents, organizations or individuals shall notify competent authorities in accordance with applicable regulations.

2. The risk assessment result shall be used as input data for emergency response activities.

3. On-site emergency response training and drills must be frequently held. Based on the risk assessment result, form and frequency of such training or drills shall be decided.The outcome of such training and drills must be examined and recorded to complete the emergency response plan.

4. Persons who visit the site for the first time should be provided with specific instructions on emergency response activities, equipment and exit ways.

Article 8. Occupational safety and environment

Organizations or individuals shall assume the following responsibilities:

1. Draw up the annual safety plan in accordance with applicable laws.

2. Provide an adequate amount of safety equipment for employees and adopt measures to improve labor conditions in a systematic manner.

3. Inform employees of measurement and test result of occupational environment and measures to control risks incurred in several positions with the monitoring parameters which exceed acceptable standards.

4. Submit the annual report on the result of the monitoring of occupational environment to superior-level administrative agencies (if appropriate), or those of centrally-affiliated cities and provinces where the applicant s office is located.

5. Comply with Vietnam’s laws on occupational conditions and environment as well as the International Agreements to which Vietnam is a signatory so as to ensure the health safety and protection for employees.

Article 9. Employee health management

Organizations or individuals shall assume the following responsibilities:

1. Carry out the health check for employees on their first days on the job and on a periodic basis in order to monitor their health conditions, occupational diseases and ensure that they will be healthy enough to work.

2. Carry out the health check to detect any occupational disease suffered by employees working in conditions likely to cause these diseases.

3. Create and store medical records and occupational disease management records until employees resign, retire or work for other organizations.

Article 10. Management of hazardous chemicals and materials

Organizations or individuals shall assume the following responsibilities:

1. Restrict use of hazardous chemicals and materials to the minimum level during oil and gas industry operations.

2. Specify and strictly control hazardous chemicals and materials which may be used, stored, manufactured or treated at workplaces, and concurrently ensure that persons involved in tasks relating to hazardous chemicals or materials have been trained to improve their awareness of hazards, skills of working safely with such hazardous chemicals and materials.

3. Create hazardous chemical and material safety notes and materials that provide proper guidance on emergency response and equipment used for supporting emergency response activities at workplaces.

4. Store, carry, use and eradicate hazardous chemicals and materials in an appropriate and safe manner and in compliance with relevant regulations.

5. Notify the public and competent authorities of locations and schedule before seismic detection activities are performed by using industrial explosives on lands and near coastal waters.

Article 11. Employee professional qualification

Organizations or individuals shall assume the following responsibilities:

1. Set out requirements for qualifications and competencies of employees who hold important safety positions.

2. Ensure that employees shall be trained for safety practices to meet requirements of their assigned tasks.

Article 12. Safety training

Organizations or individuals are obliged to ensure:

1. Persons in positions of management or those in charge of safety tasks and employees will be trained, examined and issued the Certificate (or booklet) of completion of the safety training.

2. Safety training will be held for the first recruitment and at least once a year.

3. Such activities as management, content design, organization, examination and grant of certificates (or booklets) in the safety training should be in place.

4. Main training contents

a) With regard to managerial staff

- Legal regulations, safety and fire safety regulations.

- Basic contents pertaining to the specialized technical safety within their jurisdiction;

- Management and implementation of safety regulations;

- Hazardous or harmful elements of manufacturing operations and preventive, eliminating and remedial measures;

- Emergency response plan.

b) With regard to staff in charge of safety tasks

- Training contents which are the same as the contents of training provided for managerial staff;

- Professional skills in organizing and implementing safety tasks at the facility site;

- Organizational and technical solutions to ensuring the safety during work;

- Safety regulations for facility site, production line, machinery, equipment, hazardous chemicals and materials within their management;

- Use, storage and examination of safety equipment, other work-related supporting devices or tools within their jurisdiction (including fire safety equipment);

- Basic methods of giving first aids to victims.

c) With regard to employees

Training contents should relevant to the extent and level of hazard, last performance, qualifications and job positions, including:

- Procedures for operation, handling of breakdowns, and safety regulations for machinery, equipment, hazardous chemicals and materials within area of their responsibilities;

- Methods of identifying hazardous or harmful elements of manufacturing operations, and preventive, eliminating and remedial measures;

- Use, storage and examination of safety equipment, other work-related supporting devices or tools relevant to their job positions (including fire safety equipment);

- Basic methods of giving first aids to victims;

- Emergency response procedures appropriate to their job positions, and accident rescue and life-saving procedures; use of rescue, life-saving equipment in case of emergency.

5. Training duration

a) As for initial training:

- Managerial staff must spend at least 12 (twelve) hours on training, including examination duration;

- Persons in charge of safety tasks must spend at least 16 (sixteen) hours on training, including examination duration;

- Employees must spend at least 16 (sixteen) hours on training, including examination duration.

b) Periodic training will be held at least once a year. The duration of periodic training equals a half of the duration of initial training.

c) Re-training will be held in response to change made to job positions, technologies or when employees have left their work for more than 6 months, or when they fail to pass examinations. The training duration is at least 12 (twelve) hours, including examination duration.

6. Trainer must hold university degrees or higher in disciplines in which they are providing training and achieve at least 5 years work experience relating to such disciplines.

Chapter III

SAFETY DESIGN AND CONSTRUCTION OF GAS AND OIL FACILITIES

Article 13. General requirements

1. Design, development and construction of oil and gas facilities should be uniform to the National standards, National technical regulations and the International Agreements to which Vietnam is a signatory; unless such standards or technical regulations have been adopted, organizations or individuals that carry out petroleum operations shall be allowed to apply the generally accepted international convention on the oil and gas industry and conform to the following requirements:

a) Technological safety;

b) Construction safety;

c) Fire and explosive safety;

d) Safety zone and corridor;

dd) Regulations on environmental protection;

e) Proposed load tolerance capability during operations and in case of emergency;

g) Prevention of a series of emergencies resulted from single emergencies.

2. Before deciding on solutions to design of gas and oil facilities, organizations or individuals are required to:

a) Offer their recommendations about operation, maintenance and repair of the gas and oil facility during its operations;

b) Decide which standards or technical regulations would apply to construction activities;

c) Conduct risk assessment and analysis as a basis for deciding on design solutions in terms of arrangement or selection of parts or all of the gas and oil facility;

d) Evaluate the occupational environment as an element of design in order to optimize environmental conditions during the operational process.

Article 14. Construction site

1. An oil and gas facility should be located at a safe distance from other structures such as lighthouse, marine warning signal, high-voltage transmission line, major cable and piping system in accordance with applicable regulations.

2. Necessary light, sound and color signals or warning colors must be attached to gas and oil facilities in order for other means of transport to easily see at night or in bad weather conditions.

3. Gas and oil facilities located within shipping channels or navigable waters must comply with legal regulations on navigation.

Article 15. Hazardous area classification for oil and gas facilities

1. Oil and gas facilities must be classified into areas by levels of risks.

2. Material functional components of the gas and oil facility like the central control room must be located outside hazardous areas. If it is impossible to place the facility’s components outside hazardous areas, supplementary safety solutions must be provided to ensure that these components will not stop running until the operator leaves.

3. Houses connected with each offshore facility must be protected and kept distant from petroleum drilling, extraction and beneficiating zones.

Article 16. Safety equipment system

1. Drilling, extraction, beneficiating and processing system, including piping system, must be supported by safety equipment items and emergency stop system (hereinafter referred to as safety equipment system). The safety equipment system must be capable of detecting emergencies or abnormal working conditions and preventing, mitigating any damage that may occur.

2. The safety equipment system must be inspected, tested and maintained in a strict manner with the intention of making it ready for operation.

3. Positions where safety equipment items are installed must be identified on the basis of risk assessment. Emergency shutdown valves must be in place to minimize the consequence of leakage that may occur.

Article 17. Exit ways

All of oil and gas facilities must have exit ways with all of necessary rescue, life-saving equipment, warning signals, symbols in order to ensure that people are evacuated in a safe manner in accordance with applicable regulations.

Article 18. Fire fighting and prevention practices

1. Fire fighting and prevention practices must conform to legal regulations on fire safety.

2. Oil and gas facilities must be designed and equipped with system for detection and warning of fire or gas leak, alert system and firefighting system which are relevant to minimize the possibility of fire, explosion and consequences.

Article 19. Facility construction

1. Oil and gas facilities must be built in conformity with the approved design. All changes likely to cause impacts on the safety levels of such facilities as against those mentioned in the design must be explained and approved by the competent authority that grants approval for such design.

2. Development, construction and installation of oil and gas facilities must be inspected or accredited by the competent authority in accordance with applicable laws. This inspection and accreditation is aimed at affirming the conformity of these facilities with National technical regulations, National standards and the International Agreements to which Vietnam is a signatory and other standards as agreed upon in the generally accepted convention on oil and gas industry.

3. Organizations or individuals are obligated to carry outthe construction quality control in accordance with applicable laws.

4. Organizations or individuals must follow fire safety standards during their construction process.

Article 20. Facility operation

1. Before putting an oil and gas facility into operation, organizations or individuals must perform the test run.

2. As for gas and oil facilities located within shipping channels or navigable waters, before bringing them into operation, organizations or individuals must build safety corridors around the facility. Safety corridors must be alerted by using appropriate marine signals and marked on the nautical chart indicating shipping channels or regions. Safety corridors must be specified in the marine notification in accordance with applicable regulations.

3. Before the test run, each item in the facility must be subject to examination, inspection and experimentation, and must be provided with all emergency response plans and fire safety practices in place to be implemented in accordance with regulations.

4. During the test run, organizations or individuals must apply enhanced measures in order to get ready to respond to emergencies or accidents in a timely and efficient manner.

5. The facility shall be brought into operation only after the result of examination, inspection and experimentation is satisfactory and required safety standards have been met.

Chapter IV

SAFETY OPERATION OF GAS AND OIL FACILITIES

Article 21. General requirements

1. Organizations or individuals must establish and sustain necessary regulations in order to carry out oil and gas industry operations in a safe manner.

2. During the operational process, these regulations must be strictly observed. Any amendment or change must be made on a timely basis or whenever there is any change to operational conditions.

Article 22. Facility operational and maintenance management

1. Before operating the oil and gas facility, organizations or individuals must introduce procedures for operation, handling of breakdowns and maintenance of machinery, equipment and entire facility. These procedures must be widely disseminated to and practiced by employees as well as stored at the facility.

2. Before and during operation, all machinery, equipment and entire facility must be subject to examination, inspection and experimentation in accordance with laws. Rescue, life-saving equipment items are required to undergo examination or experimentation in order to ensure that they are in place in case of emergency.

3. Organizations or individuals must carry out timely repair and replace out-of-order equipment to ensure safety for humans, environment and entire facility.

4. All operations which may endanger humans, environment and entire facility must be immediately halted.

Article 23. Communication

Oil and gas facilities where persons are regularly working must be equipped with immobile and portable communication devices to facilitate internal communication or connection with lands, ships or planes during normal operations or in case of emergency in any time.

Article 24. Drilling and well activities

1. Before drilling and well activities that take place, organizations or individuals must adopt instructions for these activities. These instructions are composed of all issues relating to safety practices, procedures and matters relating to organization and assignment of responsibilities.

2. Technical specifications of equipment items used for supporting well operations and maintenance activities must be shown in operational and maintenance procedures and enclose the normal operating range.

3. Drilling activities and well operations must be implemented in a safe manner and in compliance with predetermined procedures. Measures to prevent blowout or leakage must be applied.

Article 25. Closure and decommissioning of well

1. If wells have not been or do not continue to be used, measures to close or decommission such wells will apply in accordance with applicable regulations.

2. In case of permanent closure of wells, all equipment operating in deep waters and causing no impact on nautical operations and environment shall remain in accordance with the generally accepted international convention on oil and gas industry and regulations laid down by Vietnam s competent authorities.

3. When extracting oil from wells, explosive materials are prohibited from being used for cutting supporting steel tubes. Under special circumstances, such cutting by using purpose-made explosive materials shall be permitted by competent authorities for explosive materials.

Article 26. Facility conversion

Before the facility conversion, occupational risk and environmental assessment must be performed to decide on the conversion method. This facility conversion shall not be allowed to make the safety level and occupational environmental requirements reduced. This conversion is required to follow national technical regulations, national standards, International Agreements to which Vietnam is a signatory or other standards in conformity with the generally accepted international convention on the oil and gas industry.

Article 27. Diving and underwater operations

1. When carrying out diving operations, organizations or individuals are required to ensure that all of these diving operations shall be safe and carried out by relevant trained and healthy persons. During the diving process, rescue and life-saving operations must be in place.

2. Before carrying out underwater operations, organizations or individuals must prepare the plan in which the implementing process, equipment to be used and safety methods to be applied must be detailed.

Article 28. Transportation of people and cargos

1. Organizations or individuals must provide necessary and safe means to carry people or cargos.

2. Cargos, equipment and raw materials must be clearly labeled to differentiate types of commodities, equipment items, raw materials and provide clear information about consignor, sending address, consignee and delivery address.

3. Organizations and individuals must search and retrieve lost commodities if such cargos are likely to pose a threat to other operations or contaminate environment, and notify the competent administrative agency.

4. Organizations or individuals must issue regulations on weather conditions in which transportation of people and cargos are permitted. Use of people-carrying baskets at offshore oil and gas facilities in bad weather conditions shall be prohibited.

Article 29. Grant of work permits

1. Organizations or individuals shall issue regulations on grant of work permits in writing to employees to work on fire and ignition sources, do work at height, within restricted space, and enter or leave dangerous areas, and work in positions where they are prone to fall down water and do other dangerous work, and ensure that appropriate measures and continual supervisory actions shall be taken to prevent emergencies or accidents.

2. Before carrying out dangerous and complicated operations which are not specified in normal working procedures, analysis and assessment of levels of hazards to such work should be conducted and relevant safety methods should be applied as well.

Article 30. Watchstanding ships

1. Watchstanding ships must be in place on a continual basis in order to ensure timely response to emergencies that may occur on offshore oil and gas facilities where persons are regularly working.

2. Organizations or individuals can share the same watchstanding ship to ensure the continuity of watchstanding activities and timely emergency response.

Article 31. Safety zone and corridor

1. Safety zone around an oil and gas facility must be established and protected by employing necessary methods.

2. Distance between the safety zone and drilling and extraction facilities must be 500 (five hundred) meters offshore from the furthermost end in all directions with regard to immobile facilities, and from anchorage positions with regard to portable facilities.

3. As for ashore facilities including gas processing, oil refinery, oil chemistry factories, storage facilities, piping system and other auxiliary facilities, the coverage of a safety zone and corridor must conform to legal regulations.

4. Within 02 (two) nautical miles from the furthermost ends of offshore facilities and from both sides of piping system, ships or means of transport shall not be allowed to anchor, except for those directly supporting oil and gas operations.

5. Unauthorized persons shall not be permitted to enter and operate in the safety zone, unless otherwise stipulated by competent authorities.

Chapter V

INSPECTION, INVESTIGATION AND REPORTING SYSTEM

Article 32. Safety inspection

1. The Ministry of Industry and Trade shall preside over, collaborate with relevant authorities in inspecting safety practices of organizations or individuals carrying out oil and gas operations.

2. Establishment of the Inspection Team and safety inspection activities must follow statutory procedures and processes.

3. If any violation against provisions laid down in this Decision is found, the Inspection Team shall exercise their right to temporarily suspend all or part of oil and gas operations. The Inspection Team shall send a written notification of temporary suspension and suggest solutions to competent authorities.

4. Organizations or individuals shall be responsible for facilitating the Inspection Team s task performance. In respect of offshore facility inspection, organizations or individuals shall assume their responsibility to make necessary arrangement for means of transport, accommodations and meals during their visit period.

5. Organizations or individuals shall take responsibility to sufficiently and punctually comply with inspection conclusions and requests for remedial measures to be taken.

6. Organizations or individuals shall have the right to petition against these conclusions of the Inspection Team. Whenever there is none of conclusions given by competent authorities, organizations or individuals still have to comply with the conclusions given by the Inspection Team.

Article 33. Incident or accident investigation

1. Organizations or individuals carrying out oil and gas operations must declare, investigate, report and keep a tally of accidents, incidents in accordance with laws.

2. On the basis of investigation, organizations or individuals must analyze and define reasons for such incidents or accidents, and propose remedial and preventive measures to avoid recurrence of similar ones.

Article 34. Reporting system

1. Organizations or individuals must enumerate, aggregate and store materials, and file reports in accordance with this Decision.

2. Within a permitted period of 15 last days of each quarter, affiliates of the Vietnam National Oil and Gas Group, oil and gas joint ventures and contractors must provide the Vietnam National Oil and Gas Group with the report on implementation of approved materials on safety management and accident, incident and/or emergency updates (if available). The report must evaluate the efficiency in safety management and preventive measures to avoid recurrence of similar accidents, incidents and/or emergencies.

3. From December 15 to December 31 every year, the Vietnam National Oil and Gas Group, organizations or individuals carrying out oil and gas operations (exclusive of those stipulated in Clause 2 of this Article) must send the report on safety management activities to the Ministry of Industry and Trade. The report must evaluate the efficiency in safety management activities and preventive measures to avoid recurrence of similar accidents, incidents and/or emergencies.

Chapter VI

IMPLEMENTARY PROVISIONS

Article 35. Implementation

1. The Ministry of Industry and Trade shall assume the following responsibilities:

a) Preside over, collaborate with relevant Ministries or industries and the People’s Committees of centrally-affiliated cities and provinces in carrying out the state management of safety practices in oil and gas operations;

b) Provide guidance on implementation of this Decision;

c) Authorize safety management authorities of the Ministry to carry out verification to approve materials on safety management in accordance with regulations laid down in Clause 6 Article 4 hereof;

d) Examine and handle violations, deal with complaints or denunciations against safety in oil and gas operations.

2. Ministries, ministerial-level agencies and Governmental bodies shall assume the following responsibilities:

Within their assigned tasks and delegated powers, they are responsible to collaborate with the Ministry of Industry and Trade to carry out the state management of safety in oil and gas operations in accordance with laws and this Decision.

3.People’s Committees of centrally-affiliated cities and provinces shall assume the following responsibilities:

Carry out the state management of safety in oil and gas operations within areas in accordance with regulations laid down in laws and this Decision.

Article 36. Effect

1. This Decision shall come into force from March 16, 2015 and replace the Decision No. 41/1999/QD-TTg of the Prime Minister dated March 8, 1999 on promulgating the regulations on petroleum operational safety management.

2. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of the People’s Committees of centrally-affiliated cities and provinces, Heads of divisions, agencies, and other organizations or individuals related to oil and gas operations in Vietnam shall be responsible to enforce this Decision./.

The Prime Minister

Nguyen Tan Dung

APPENDIX

DOCUMENT TEMPLATE
(Issued together with the Prime Minister’s Decision No. 04/2015/QD-TTg dated January 20, 2015)

Template No. 01

Dear the Ministry of Industry and Trade,

Pursuant to regulations laid down in Article 4 of the Prime Minister’s Decision No. /2015/QD-TTg dated…… on providing regulations on petroleum operational safety management.

We hereby request the Ministry of Industry and Trade to consider, approve materials on safety management for…………..

Attached documents:

- Safety management program for……………………………….;

- Risk assessment report for…………………………………………;

- Emergency response plan for………………………………………./

Template No.02

MINUTES

Meeting over verification of safety management materials

Upon the request of…………….in the official document No. ......dated......... for approval granted by the Ministry of Industry and Trade for materials………….

Today, at/in……… on……..,

The verification council is considering the materials............

I. COMPOSITION OF THE MEETING

1. Mr. ……………………………………………………………………, the Chairman of the Council;

2. Mr………………………………………………………………………., the Council member(s)

Stakeholders:

1. Mr. .............................................................................................................................

2. Mr. .............................................................................................................................

Report-writing consultancy unit:

1. Mr. .............................................................................................................................

2. Mr. ...........................................................................................................................

II. MEETING CONTENTS

III. CONCLUSIONS AND RECOMMENDATIONS

The verification council has verified conclusions towards safety management materials of............;

The Council hereby request……………to improve materials in accordance with………….in the meeting.

Given improved materials, the Council will report to the Minister of Industry and Trade for approval for materials on safety management of………………./.

Template No.03

Dear………………,

Upon the request of…………….in the official document No. ......dated......... for approval for materials on safety materials. After consideration, the Ministry of Industry and Trade hereby request………………..to additionally provide the followings:

- (list out additional contents).

- .....................................................................................................................................

- .....................................................................................................................................

Supplemented documentation must be submitted to the Ministry of Industry and Trade before ………..at the address of the Ministry of Industry and Trade, No. 54 Hai Ba Trung, Hoan Kiem district, Hanoi.

Telephone number: ..........................................................................................................

Fax: ...............................................................................................................................

Email address: ................................................................................................................

Template No.04

REPORT ON VERIFICATION RESULT

MATERIAL………

Dear the Minister of Industry and Trade,

The Ministry of Industry and Trade has received the official dispatch of ………No. …….dated on requesting approval for materials on safety management for…………….

On ……….., the Verification Council has carried out the verification of their application and on-site inspection (if any), and requested supplementation of documentation (if available) and completion of the report upon request.

The verification council hereby reports to the Minister on the following results:

I. COMPOSITION OF MATERIALS

1. Written request for approval of……….., enclosing comments of the direct management organization.

2. Materials ....................................................................................................................

II. VERIFICATION OPINIONS OF THE COUNCIL

The verification council carries out verification of materials............

1. Verification contents

.......................................................................................................................................

2. Conclusions and recommendations

On………., the applicant has completed materials in accordance with conclusions given in the meeting and they are attached along with the official dispatch No. ....................................................................................

The Verification Council agrees to the Minister’s request for decision on approval for materials on safety management for the facility………… of ............................................................................................................

Looking forward to the Minister’s kind consideration and approval decision./.

Template No.05

DECISION

Approval for materials………

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Government’s Decision No. 95/2012/ND-CP dated November 12, 2012 on defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Prime Minister’s Decision No. /2015/QD-TTg dated……, 2015 on providing regulations on petroleum operational safety management;

At the request of…………….in the official document No. ......dated......... for approval granted by the Ministry of Industry and Trade ………….;

Given the report of the Verification Council No…..dated………,201….;

At the request of……………,

HEREBY DECIDES

Article 1.To approve materials on safety management for the facility…….of………

Article 2.To implement recommendations or proposals specified in materials………in order to ensure the safety for the facility.........................................................................

Article 3.This Decision shall come into force from the signing date.

The Chief of the Ministry Office, the Director of the General Department of Energy, Heads of units….., the General Director of …….., shall be responsible for enforcing this Decision./.