Regulations on offshore investment in oil and gas activities

On October 15, 2024, the Government issues the Decree No. 132/2024/ND-CP on prescribing offshore investment in oil and gas activities.

Sources of offshore investment capital in oil and gas activities include money and other lawful assets of the investors, including equity and loans in Vietnam that are transferred abroad, recovered expenses, profits and distributions from oil and overseas oil and gas projects retained for offshore investment.

Offshore investment capital is used to contribute capital, pay for shares, purchase capital contributions, fulfill arising guarantee obligations (if any) and other financial obligations of the investors in accordance with the laws of the host countries, oil and gas contracts, licenses and other relevant agreements to carry out offshore oil and gas activities and implement overseas oil and gas projects from the time of project formation to the time of project completion and fulfillment of all obligations as prescribed.

To carry out activities of forming an overseas oil and gas project or implementing an overseas oil and gas project, an investor may establish or jointly establish an operating company in Vietnam, the host country or a third country, in accordance with the law of the host country and the oil and gas contract.

Investors may transfer part or the whole of overseas oil and gas projects in conformity with oil and gas contracts, relevant agreements and licenses, laws of the host countries and concerned countries, and this Decree.  The authority competent to decide on investment in an overseas oil and gas project is the authority competent to decide on the transfer of such a project.

This Decree takes effect on December 05, 2024.