Philippine Energy Contracting Round 2005 Department of Energy 31 August 2005

UPSTREAM PETROLEUM

Petroleum Service Contracts Prior to Supreme Court Reversal on the Unconstitutionality of the Mining Act of 1995 6 - GEOPHYSICAL SURVEY & EXPLORATION CONTRACTS 9 - SERVICE CONTRACTS

Petroleum Service Contracts as of Today: 1 – GEOPHYSICAL SURVEY EXPLORATION CONTRACT 21 – SERVICE CONTRACTS

PROSPECTIVITY OF SERVICE CONTRACTS Production Previous Production and Planned for Reopening Discoveries but not Produced Drilled Prospects but no Discoveries Detailed Seismic but not Drilled Reconnaissance Seismic & Geophysical Data with no Drilling Little Geophysical & Geological Data

SERVICE CONTRACT CLASSIFICATION L E G E N D : 1 – with production 4 - with drilled prospects but no discoveries 2 – with previous production & planned for reopening 5 – with detailed seismic survey but not drilled 3 – with discoveries but not produced 6 – with reconnaissance seismic & geophysical data with no drilling 7 – with little geophysical & geological data

SERVICE CONTRACTS WITH PRODUCTION

SERVICE CONTRACTS WITH PREVIOUS PRODUCTION AND PLANNED FOR REOPENING

SERVICE CONTRACTS WITH DISCOVERIES BUT NOT PRODUCED

Areas on Offer Area 1 Southwest Palawan Area 2 & 3 East Palawan Area 4 Sulu Sea Map showing the current petroleum activities in the Philippines. As of to date, the Philippines has 20 Service Contracts (SCs; shown in RED) with ongoing exploration and production phases and 1 Geophysical Service Contract (GSEC; shown in BLUE) in the Reed Bank region that recently conducted a 3D seismic data acquisition. The four petroleum areas offered in this bid round (shown in ORANGE) cover offshore regions in the South China Sea and the Sulu Sea.

GEOTHERMAL

GEOTHERMAL PERFORMANCE

Geothermal Reserves and Installed Capacities Possible reserves 1,990 MWe Probable reserves 500 MWe Proven reserves 1,850 MWe Installed capacity 1,931 MWe Annual generation (2004) 10,280 GWh Total no. of GSC 9 Total producing fields 6 Target capacity addition 710 MW

COAL

Historical Performance Coal Industry Historical Performance Million Metric Ton

Coal Reserves and Annual Production In-situ coal reserves 448 MMMT Mineable reserves* 337 MMMT Annual production (2004) 2.726 MMMT Total Explo COC 15 Total Dev’t./Prodn COC 19 Total SSCMP 39 Target annual production 6 MMMT by 2014 * Computed using extraction factor for applicable mining method

COAL IMPORT- PRODUCTION RATIO 2004

CONCLUSION So what are we waiting for… Be our partner towards energy We have gas. We have geothermal and coal. We have domestic market for all. So what are we waiting for… Be our partner towards energy independence in the Philippines!

Philippine Energy Contracting Round 2005 Thank you Department of Energy 31 August 2005