g FOR 2008 FOR 2008 FOR 2008 FOR 2008 Department of Energy - PowerPoint PPT Presentation

CCOP CCOP- -EPPM Project 3 (P3) Metadata on Natural Resources in the EPPM Project 3 (P3) Metadata on Natural Resources in the CCOP Region CCOP Region CCOP Region CCOP Region Davao, Philippines Davao, Philippines 7- -9 October 2009 9 October 2009 PHILIPPINE ANNU PHILIPPINE ANNUAL REPOR PHILIPPINE ANNUAL REPOR PHILIPPINE ANNU AL REPORT AL REPORT OF OIL AND GAS A OF OIL AND GAS A OF OIL AND GAS ACTIVITIES OF OIL AND GAS A OF OIL AND GAS ACTIVITIES OF OIL AND GAS ACTIVITIES OF OIL AND GAS A OF OIL AND GAS ACTIVITIES TIVITIES TIVITIES TIVITIES TIVITIES g FOR 2008 FOR 2008 FOR 2008 FOR 2008 Department of Energy Department of Energy p p gy gy Novelwin Novelwin A. Santos A. Santos Shelly Grace A Santiago Shelly Grace A Santiago Shelly Grace A. Santiago Shelly Grace A. Santiago

Outline Outline Outline Outline � Oil and Gas Exploration Activities p � Exploration Areas � Production, Developm ent, and Transportation � Production Data � Exploration Data � Fiscal Regim e ( Contract System ) Fiscal Regim e ( Contract System ) � I nvestm ent Cam paign I nvestm ent Cam paign � Privileges of the Service Contractor � Data availability and accessibility � Areas for offer A f ff

Sedim entary Basins Exploration Areas of the Philippines 1. Cagayan Valley 2. Ilocos 3. West Luzon 4. Central Luzon Valley 5 5. Bicol Shelf Bicol Shelf 6. Southeast Luzon 7. Mindoro-Cuyo Platform 8. East Palawan 9. Northwest Palawan 10 Southwest Palawan 10. Southwest Palawan 11. Reed Bank 12. Sulu Sea 13. West Masbate-Iloilo 14. Visayan 15. Cotabato 15. Cotabato 16. Agusan-Davao

Exploration Areas EXISTING PETROLEUM EXISTING PETROLEUM SERVICE CONTRACTS SERVICE CONTRACTS • 34 Active Service 34 Active Service Contracts Contracts • 1 Active Geophysical 1 Active Geophysical Survey & Exploration Survey & Exploration Survey & Exploration Survey & Exploration Contract (GSEC) for Contract (GSEC) for conversion to SC conversion to SC co co e s o e s o to SC to SC

OFFSHORE NW PALAW AN PRODUCTI ON Galoc (1988) 0 4 MMBO (EPT) 0.4 MMBO (EPT) Malampaya (2001-present) 2.3 MMBO (2008-present EPT) 817 BCFG 38 MMBC 1.9 MMBO (EPT) (2001-2002) W. Linapacan (1992-1996) 8.5 MMBO Cadlao (1981-1991) ( ) 11.2 MMBO Nido (1979-present) Matinloc complex (1982-present) 18.7 MMBO 12 MMBO

Transportation Installation Transportation Installation p 2 CNG t ti 2 CNG stations Malampaya ~ 2.4-3.7 2.4 3.7 51 CNG Buses 51 CNG Buses TCF 34 operational

Philippine Petroleum Production 8 0 0 2 7 0 0 2 6 0 0 2 5 0 0 2 4 0 0 2 3 0 0 2 2 0 0 2 1 0 0 2 0 0 0 2 9 9 9 1 8 9 9 1 7 9 9 1 6 9 9 1 5 9 9 1 4 9 YEAR 9 1 3 9 9 1 2 9 9 1 1 9 9 Malampaya Condensate 1 0 9 9 1 9 8 9 1 8 8 9 1 7 TOTAL GAS TOTAL GAS 8 TOTAL OIL 9 1 6 8 9 1 5 8 9 1 4 8 9 1 3 8 9 1 2 8 9 1 1 8 9 1 0 8 9 1 9 7 9 1.E+08 1.E+07 1.E+06 1.E+05 1.E+04 1.E+03 1.E+02 1 OE) olume (in BO Vo

P t P t Petroleum Resources Petroleum Resources l l R R TOTAL DI SCOVERED UNDI SCOVERED ( MBBLOE) 2 6 8 3 ,5 0 0 3 ,6 0 0 OI L ( MBBL) 3 .8 2 4 .7 2 8 .5 GAS ( TCF) CONDENSATE 1 0 9 5 6 1 6 5 ( MBBL)

Historical Seism ic Data Acquisition i i i

Seism ic Data Seism ic Data 2 D 3 D ( ln-km ) ( l k ) ( sq. km ) ( k ) TOTAL TOTAL 4 6 3 5 0 0 4 6 3 ,5 0 0 8 2 4 7 8 ,2 4 7 2 0 0 7 1 2 ,0 1 0 1 ,6 8 0 2 0 0 9 3 ,3 0 0

Discove ery 6 5 4 3 2 1 1 0 Historical Drilling Activity Discovery Wells Drilled ( 1 8 9 0 – 2 0 0 8 ) Year 45 40 35 30 25 20 15 10 5 0 s Drilled Well

W ell Data W ell Data W ells Drilled Discovery 2 0 0 8 7 2 TOTAL 5 6 3 5 3

THE PETROLEUM SERVI CE CONTRACT SYSTEM • Regalian Doctrine “All “All energy resources belong to the b l t th State” • The Government, through the Departm ent of Energy ( DOE) , coordinates and supervises all p activities related to the energy exploration, development and exploration, development and production.

Petroleum Law Petroleum Law Petroleum Law Petroleum Law Presidential Decree No. 8 7 : “The Oil id i l “ h il Exploration and Developm ent Act of 1 9 7 2 ” 9 2 ” • Geophysical Survey and Exploration Contract G h i l S d E l ti C t t ( GSEC) • Non-Exclusive Geophysical Perm it ( NEGP) • Non-Exclusive Geophysical Perm it ( NEGP) • SERVI CE CONTRACT ( SC) SYSTEM ( ) * Philippine Energy Contracting Round

Fiscal Term s Royalty/ ies : None Cost Oil : 7 0 % of gross incom e Depreciation Depreciation : : Double Declining Balance or Double Declining Balance or Straight Line Method I ncom e Tax I ncom e Tax : : 3 2 % paid out of Gov’t share 3 2 % paid out of Gov t share Profit Oil : 6 0 - 4 0 ( Governm ent – Contractor share) Contractor share) FPI A : 7 .5 % m axim um @ 3 0 % participation ( m inim um of participation ( m inim um of 1 5 % participation) State Participation : Not required

Fiscal Term s Contract Area : 8 0 0 -1 5 ,0 0 0 km 2 ( Offshore) , ( ) 5 0 0 -7 ,5 0 0 km 2 ( Onshore) Contract Term : 7 yrs exploration + 3 yrs Contract Term : 7 yrs exploration + 3 yrs extension 2 5 yrs production + 1 5 yrs 2 5 yrs production + 1 5 yrs extension Signature Bonus : US$ 5 0 ,0 0 0 – US$ 2 5 0 ,0 0 0 Signat re Bon s US$ 5 0 0 0 0 US$ 2 5 0 0 0 0 Other Bonuses : Negotiable ( Discovery & P Production) d ti ) Training Fund : Negotiable

Privileges of the Service Contractor � Service Fee of up to 40% of net proceeds o up o 0 o p o d � Cost reimbursement of up to 70% of gross income i � Filipino Participation Incentive Allowance p p (FPIA) of up to 7.5% of gross income (minimum of 15% participation) ( p p ) � Exemption from all national taxes except income taxes income taxes � Free market determination of crude oil and natural gas prices

Petroleum Data Petroleum Data Petroleum Data Petroleum Data • Energy Data Center of the Philippines Department of Energy • • Web Mapping Software Web Mapping Software http://pdq.doe.gov.ph/pdq

DOE W eb Map DOE W eb Map ap ap http://pdq.doe.gov.ph/pdq eb eb O O

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