1. Highlights of the Offers

2. PETROLEUM

3. Areas on Offer SW Palawan Area 1 E Palawan Area 2 & 3 Sulu Sea Area 4
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.

4. Contract terms for Petroleum
Contract Area
12,000 sq km to 15,000 sq km
Contract Term
7 yrs. Exploration + 3 yrs. Extension + 25 yrs. Production + 15 yrs. extension
Signature Bonus
USD 50,000 to USD 150,000
Income Tax
Tax rate: 32% - paid out of Government share
Cost Oil/Gas
Cost Oil Limit: 70% of gross income; CAPEX depreciated over 5 to 10 yrs.
Government share: 60%; FPIA up to 7.5% of gross proceeds
with at least 15% Filipino participation
Profit Oil/Gas
The table shows the summary of the fiscal terms used by the DOE.
Training Allowance
USD 20,000/yr during exploration; USD 50,000/yr during
production (both cumulative)
State Participation
None
Royalties: Oil/Gas
None

5. GEOTHERMAL

7. Geothermal Prospect Areas
Daklan, Benguet 60 MW
Natib, Bataan MW
Mabini, Batangas 20 MW
Montelago, Mindoro Oriental MW
Biliran, Biliran MW
Amacan, Compostela MW
Tiwi, Albay ( for direct application)
Sta. Lucia-Iwahig, Puerto Princesa, Palawan ( for direct application)
Mambucal, Murcia, Negros Occidental ( for direct application)
Malabuyoc, Cebu (for direct application)
Camiguin, Camiguin Province (for direct application)

8. SERVICE CONTRACT Per PD 1442
TERMS OF A GEOTHERMAL
SERVICE CONTRACT Per PD 1442
Exploration period: 5 years + 2 years extension
Production period: 25 years + 18 years extension
INCOME TAX
32% of net proceeds (paid out of Government Share)
TAX-EXEMPTION
on machinery, equipment, spare parts and materials to be imported
RECOVERY OF OPERATING EXPENSES
90% of gross income per year
10-year depreciation of capital expenditures
PROFIT SHARING SCHEME
Contractor: 40% of Net Proceeds
Government: 60% of Net Proceeds

9. COAL

11. Coal Prospect Areas No.of coal blocks Polillio Island, Quezon 2
Tagkawayan, Quezon 1
Calatrava, Negros Occidental 1
Candoni/Bayawan, Negros Oriental 3
Malangas, Zamboanga Del Norte 6
Gigaquit, Surigao del Norte 6
Tandag-Tago-Lianga-Bislig, Surigao Del Sur 17
Total 36

12. HIGHLIGHTS OF CONTRACT TERMS FOR COAL
2 years exploration period + 2 years exploration period extension years development and production period + 3-year extensions not exceeding 12 years
Signature Bonus
Negotiable
Cost Recovery
90% of gross income; capital expenditures depreciated over 5-10 years
Taxes
Exempted from all national taxes except income tax
Profit Share
Government: 30% of the Net Proceeds
Contractor: 70% of the Net Proceeds
Importation
Tax-exemption for equipment, machinery, spare parts and materials to be imported

13. SELECTION CRITERIA Work Program
ASPECT
KEY ELEMENTS
WEIGHING FACTOR
(INDICATIVE)
Work Program
Resource exploration strategies and methodologies
Development concepts
Utilization and production approach
40%
Financial Qualifications
Evidence of available funds
Finance track record
Other sources of financing
30%
Technical Qualifications
Technical resources
Experience and track record of the company
20%
Other
Management of health, safety and the environment (HSE)
Human resource development program
Programs for community welfare and development
10%

14. PECR TIMETABLE Announcement 31 August 2005
31 August to 29 November 2005
Physical Data Room opening
Road shows
August to September 2005
Submission of proposals
29 November 2005
Schedule of activities for the bid round which began last May 2005 on the moratorium on new applications.
The Physical Data Room is also being opened in conjunction with the PECR Petroleum Areas launching ceremony.
01 December 2005 to 31 January 2006
Evaluation of proposals
     
Processing and negotiation
01 February to 31 May 2006
Awarding of contracts
From 01 June 2006

15. Energy Center, Merritt Road Fort Bonifacio, Taguig City
DOE Contact
Mr. Guillermo R. Balce
Undersecretary
Direct line: (632)
Telefax: (632)  
DEPARTMENT OF ENERGY
Energy Center, Merritt Road
Fort Bonifacio, Taguig City
Metro Manila
Philippines 1201