Vietnam proposes new legal framework for oil and gas carbon capture

Vietnam’s Ministry of Industry and Trade has proposed a new legal framework to regulate carbon capture and storage (CCS) activities specifically linked to the oil and gas sector. This proposal is a new addition to the existing regulatory landscape, distinguishing it from Decree No. 45/2023/ND-CP.

The draft decree requires rigorous assessments of CO2 storage potential before implementation. These assessments must include geological characteristics, tectonic history, fault systems, and three-dimensional reservoir hydrodynamic simulations. Furthermore, the framework mandates detailed risk assessments regarding CO2 leakage, the impact of injection on pressure zones and neighboring oil and gas reservoirs, and potential risks to human health, the environment, and natural resources.

Under the proposal, contractors may be permitted to incorporate CCS activities into their existing oil and gas contracts. The framework also aims to address technical and safety requirements for operating and decommissioning CCS facilities, recoverable project costs, carbon credit revenue, and accounting mechanisms. Other specialized matters, such as environmental protection and emission reduction verification, will continue to be governed by relevant specialized laws.