Decision No. 198/2006/QD-TTg dated August 29, 2006 of the Prime Minister approving the Scheme on the formation of the Vietnam National Oil and Gas Group
THE PRIME MINISTER OF GOVERNMENT
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, August 29, 2006
APPROVING THE SCHEME ON THE FORMATION OF THE VIETNAM NATIONAL OIL AND GAS GROUP
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 26, 2003 Law on State Enterprises;
Pursuant to the November 29, 2005 Law on Enterprises;
Pursuant to the Government's Decree No. 153/2004/ND-CP of August 9, 2004, on organization and management of state corporations and transformation of state corporations and independent state companies after the parent company-subsidiary company model;
At the proposal of the Management Board of the Vietnam Oil and Gas Corporation,
Article 1.- To approve the Scheme on the formation of the Vietnam National Oil and Gas Group, with the following contents:
1. To form the Vietnam National Oil and Gas Group under multiple ownership with the State holding the dominant share of capital on the basis of reorganizing the Vietnam Oil and Gas Corporation and its member units. The Vietnam National Oil and Gas Group shall have modern technologies and management level and a high degree of specialization, deal in various business lines, in which oil and gas exploration, exploitation, processing and distribution constitute the main one; closely combine production and business activities with scientific and technological research and application and training; and act as the core for the Vietnam's oil and gas industry to develop in a sustainable manner, raise its competitiveness, effectively integrate into the international economy and ensure energy security for national development.
2. The Vietnam National Oil and Gas Group shall consist of:
a/ The parent company ' the Vietnam Oil and Gas Group - which is a state company having the function of signing and supervising the performance of petroleum contracts with foreign countries; executes national key projects on oil and gas; makes financial investment in other enterprises; holds the right of dominance over subsidiary companies through capital and properties assigned by the State for management, technologies, brands and markets; and is formed on the basis of reorganizing the managerial and executive apparatus, assisting bodies and project management units of the Vietnam Oil and Gas Corporation.
b/ Corporations operating after the parent company-subsidiary company model, with the parent companies having 100% of their charter capital held by the Vietnam Oil and Gas Group:
- Petroleum Exploration and Exploitation Corporation (to be formed on the basis of reorganizing units operating in oil and gas survey, exploration and exploitation);
- Gas Corporation (to be formed in the basis of reorganizing PetroVietnam Gas Company, gas production and wholesale units, joint-venture factories and gas project management units);
- Power Production and Trading Corporation (to be established when power plants invested by the Vietnam Oil and Gas Group are put into operation);
- Oil Refinery Corporation (to be established when oil refinery plants invested by the Vietnam Oil and Gas Group are put into operation).
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