Name of recommendations: Policies of supporting PVEP

Status: Has not been responded

Recommended by units: The PetrolVietnam Exploitation Production Cooperation (PVEP)

Official letter: 1389/PTM - VP, dated: 2017-06-13

Recommended contents:

- For PVEP / PVN Exploration & Production Risk Fund: PVEP / PVN shall be allowed to deduct up to 30% of PVEP / PVN's profit after tax (extracted from PVEP / PVN used for all PVEP / PVN exploration projects. (explained in item 1 of the attached appendix).

- Allocation of Petroleum Projects costs: To permit PVN to approve the allocation of exploration and development of PVEP's ineffective Petroleum Projects to improve the quality of PVEP's assets). (explained in item 2 of the enclosed appendix).

- To allow PVEP / PVN to have a mechanism to ensure taxable income for CIT calculation, deduct reasonable expenses from business expenses (corporate management expenses, financial expenses (interest. ..) and expenses allocated in the period of unsuccessful investments in the past ... (explained in item 3 of the enclosed appendix).

- For the mines that are being exploited ineffectively (Lam Son, VRJ), PVEP / PVN we recommend the Government to approve the policy to stop exploitation of these mines as soon as possible to cut losses for the project and apply a the Non-Profitable Mine Operating Mechanism (as approved by the Government for Song Doc mine, block 46/13).