Unlocking new energy value chains

The draft Law on Petroleum (amended) in 2026, with many groundbreaking points, is expected to be a leverage to ensure energy security, meet the target of double-digit economic growth, and promote energy transition in Vietnam. Dr. Nguyen Quoc Thap - Chairman of the Vietnam Petroleum Association - shared his views on this issue with a reporter from the Vietnam News Agency (TTXVN).

Mr. Nguyen Quoc Thap, Chairman of the Vietnam Petroleum Association. Photo courtesy of Le Dong/TTXVN.

The 2022 Petroleum Law is considered to have created an important legal foundation for oil and gas exploration and production. So, what are the reasons why this law still needs to be amended, sir?

The 2022 Petroleum Law has introduced progressive provisions that have positively impacted oil and gas activities in general and Vietnam's energy landscape. Accordingly, many oil and gas contracts have been signed recently, whereas in previous years they were impossible to implement; the number of oil and gas projects put into operation has also increased; and basic exploration activities have been restarted.

In particular, dry oil production has recovered and is trending upwards since 2025, and is expected to continue increasing in 2026 compared to 2025, while previous years have been in decline.

However, given the country's development needs, the potential of the oil and gas industry, and its ability to attract investment, this amendment to the Law aims to strengthen oil and gas activities, bring more new projects/fields into production, and increase the number of active projects. This will help realize national growth targets. Therefore, the Vietnam Oil and Gas Association believes that this amendment to the Oil and Gas Law is an inevitable and objective requirement.

The draft amended Petroleum Law proposes expanding its scope to include the energy value chain, offshore energy, and carbon storage technologies. What are your thoughts on this proposal?

This is a positive proposal because the energy value chain and offshore activities are often closely linked to the oil and gas sector. Furthermore, the implementation of activities such as CO2 disposal and energy storage is also linked to oil and gas contracts. Therefore, integrating these contents into the revised draft of the Oil and Gas Law is a very progressive step.

Besides the above proposal, what are the other new points in this revised draft of the Petroleum Law, sir?

Firstly, this revised draft of the Law on Oil and Gas improves and simplifies procedures, strengthens and decentralizes authority in the appraisal and approval of project implementation steps and oil and gas activities.

Secondly, it is necessary to supplement and improve regulations on oil and gas contracts and oil and gas operations.

Thirdly, it is necessary to supplement and improve the mechanisms, policies, and regulations on investment incentives in oil and gas activities.

Fourth, the regulations cover mechanisms and policies for developing the oil and gas value chain, including high-tech services and offshore energy. Fifth, the regulations establish frameworks for reducing greenhouse gas emissions, and for carbon capture and storage in oil and gas operations. These are crucial aspects addressed in this revised draft of the Oil and Gas Law.

PV Drilling VIII self-elevating drilling rig. Photo: Doan Manh Duong/TTXVN

What contributions has the Vietnam Petroleum Association made to this draft of the revised Petroleum Law, sir?

The Vietnam Petroleum Association and I have been involved from the initial drafting process to the present day, resulting in a fairly complete revised draft.

However, the Vietnam Petroleum Association continued to review the final draft and found that some proposals were still incomplete and required further input to ensure feasibility.

Specifically, the Vietnam Petroleum Association hopes that the issue of licensing for offshore energy projects and CO2 landfill (CCS) projects will be included in this draft law.

The second point to be added to the draft Law concerns shortening the negotiation and signing process for oil and gas contracts in bidding or direct contracting activities. Accordingly, model oil and gas contracts, when approving bidding or direct contracting plans, must be designed separately, avoiding the situation where generic contract templates cause negotiations to take a long time.

The third point concerns the issue of investor selection. Currently, the draft law is quite progressive, but during implementation, the Petroleum Association has found that there are still areas where the licensing time could be shortened, as well as the time for selecting investors or for existing investors to renew investment contracts to continue implementing existing contracts.

If the draft amended Petroleum Law is passed, how do you think it will facilitate the operations of the Vietnam National Energy and Industry Corporation ( Petrovietnam ) in its new development phase?

According to the planned schedule, during its upcoming second session, the 16th National Assembly will consider and approve the amended Petroleum Law, thereby promoting investment in oil, gas, and energy.

In particular, the amended Petroleum Law will have the greatest impact on Petrovietnam's operations because the Group is authorized by the government and the Ministry of Industry and Trade to perform state management functions, while the decentralization and delegation of power under this draft amended Petroleum Law is very significant. Therefore, Petrovietnam's responsibilities and tasks will be much greater than in the past. In addition, as investors, Petrovietnam and its member units such as the Vietnam-Russia Oil and Gas Joint Venture - Vietsovpetro, the Exploration and Production Corporation (PVEP), as well as foreign investors, will have many opportunities to participate in oil and gas and energy activities in general offshore Vietnam.

Thank you very much, sir!

Source: https://baotintuc.vn/kinh-te/mo-khoa-chuoi-gia-tri-nang-luong-moi-20260503112343091.htm