Petroleum Fiscal Issues and Policies for Fluctuating Oil Prices in Vietnam
The 1998 lowest level of international oil prices, triggered Viet Nam's request for technical assistance, to not only evaluate the petroleum fiscal system in comparison to other countries' competitiveness in international oil contracts�...
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| Format: | ESMAP Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/02/1047450/petroleum-fiscal-issues-policies-fluctuating-oil-prices-viet-nam http://hdl.handle.net/10986/20299 |
| Summary: | The 1998 lowest level of international
oil prices, triggered Viet Nam's request for technical
assistance, to not only evaluate the petroleum fiscal system
in comparison to other countries' competitiveness in
international oil contracts' best practice, but also to
evaluate options for flexible gas production contracts,
including fiscal incentives for oil, and gas development of
economically marginal fields. Since this report was
prepared, in early 1999, oil prices have risen, and, the
Petroleum Law was amended by mid 2000, hence, a later report
will discuss revisions, and evaluate the total fiscal
package. Nonetheless, the analyses reveal Viet Nam's
contractual terms, concluding the country deals effectively
with variations in economic conditions resulting from water
depths; but ineffectively in dealing with field sizes,
essentially creating the situation for small fields to
remain uneconomic; moreover, it does not deal specifically
with variations in economic conditions: actually it strongly
discourages the development of fields with low-well
productivity, deep wells, or high facility costs; and,
although the country adequately deals with high oil prices,
it does not deal effectively with low oil prices, instead,
this instantly creates prevailing, uneconomic oil fields.
Enhancements for flexible oil, and gas contracts, suggest
rate of return sliding scales, and formulas based on
cumulative production. |
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