Proposing incentive policies and regulatory framework for the development of marginal fields in Vietnam
Abstract
Oil and gas exploration and production activities in Vietnam have been boosted with many petroleum discoveries of large potential being put into development and production, contributing importantly to the country’s socioeconomic development with a total production of 455 million tons of oil equivalent. However, there are still a number of small and marginal fi elds which are diffi cult for development in terms of economic, technical and legislative conditions. To ensure domestic oil and gas production output, it is necessary to encourage the participation of petroleum investors in the development and exploitation of these fi elds through an incentive mechanism, which would signifi -cantly contribute to the government revenue, improve the economic effi ciency of projects and ensure energy security. This article presents a general concept of marginal fi elds, introduces international experience on marginal fi eld incentives, and proposes policies to encourage marginal fi eld development and production in Vietnam.
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