The First Philippine Petroleum Public Contracting Round
(PCR-1) W01/3868
Eduardo V. Mañalac
Undersecretary
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Why Philippines?
Why Philippines?
Prospectivity?
Market?
Economics?
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PCR
PCR
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1 offers
1 offers
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easy access to lots of data
137,000 line km 2D seismic
3,600 sq km 3D seismic
144 wellsAlso available are new, high quality seismic data in NW Palawan, Sulu Sea and East Palawan basins.
PCR
5 PGS MC3D SURVEYS PGS MC3D SURVEYS –– NW NW PalawanPalawan MC3D surveys:MC3D surveys: − − NW PalawanNW Palawan –– 897 km897 km2 2 acquired 1996 acquired 1996 − − MalampayaMalampaya –– 1,112 km1,112 km22 acquired 2002 acquired 2002
Total 916 kmTotal 916 km22 3D over open 3D over open
acreage
acreage
MalampayaMalampaya High Resolution High Resolution
MC3D
MC3D –– first to be acquired first to be acquired in Asia Pacific
in Asia Pacific
Easy access to data
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Malampaya
Malampaya HDHD--MC3D MC3D ––
Open Area Data Example
Open Area Data Example
Post-Nido turbidites
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Easy access to data
Easy access to data
NW Palawan 3D, Palawan 2D, Sulu Sea NW Palawan 3D, Palawan 2D, Sulu Sea and East Palawan 2D Surveys by
and East Palawan 2D Surveys by WesternGeco
WesternGeco
~3,500 sq km 3D in NW Palawan ~4,800 line km 2D in Palawan
> 5,700 line km of 2D data in the Sulu Sea and East Palawan
basins
Covers significant area of Sandakan basin which is
analogous to the petroleum rich Baram and Tarakan deltas
Caga yan R idge Sandakan Bancauan Balabac
9 Structures Structures 5 km 2. 0 3.0 1.0 Thrust structuring
- multiple closed structures Closed anticline
Closed anticline
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Malaysia analogue
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Indonesia analogue
Indonesia analogue
TOE-THRUST STRUCTURES
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Analogue examples
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Easy access to data
Easy access to data
DATA ROOMS DATA ROOMS
Selected data – for viewing only
Reservation: email to [email protected]
Rooms Physical Virtual
Opening 5 Aug. 2003 -Feb. 2004 1 Sept. 2003 - Feb. 2004
Location Manila Manila, Stavanger, London,
Houston Description Workstation; paper and
digital data
Workstation with viewing and interpretation software
Fee USD 1000 (creditable to
data purchase) for max of 3
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PCR
PCR
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1 offers
1 offers
easy access to data
easy access to data
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Highlights of the fiscal terms
Highlights of the fiscal terms Contract Area 2,000 - 8,000 sq km
Contract Term 7 yrs. exploration + 3 yrs. extension + 25 yrs. production + 15 yrs. extension
Signature Bonus USD 50,000 - USD 250,000 Royalties None
Income Tax Tax rate: 32% - paid out of Government share
Cost Oil/Gas Cost oil limit: 70% of gross income; Capital expenditures depreciated over 5 to 10 yrs. Profit Oil/Gas Government share: 60%
FPIA up to 7.5% of gross proceeds with at least 15% Filipino participation
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SC Profit Sharing
SC Profit Sharing
$ 100.00 Gross Proceeds
7.50 less FPIA (to Contractor)
70.00 less Cost Recovery (to Contractor) 22.50 Net Proceeds
$ 13.50 60% Government Share $ 9.00 40% Contractor's Share
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Comparison of Fiscal Terms
Comparison of Fiscal Terms
0 10 20 30 40 50 60 70 Spain Argentina Portugal G. Mexico New Zealand Australia Peru Philippines Tunisia Thailand Colombia Morocco Mongolia China Indon. Gas Congo E. Indonesia PNG Vietnam India Ivory Coast Trinidad Ecuador Albania Venezuela Algeria Angola Syria Myanmar Egypt Malaysia Brunei Indonesia
Contractor share of income post gov't cut & taxes (%)
Royalty/Tax System
Royalty/Tax System
Production Sharing Contract
Production Sharing Contract
Service Agreement
Service Agreement
(Modified from Daniel Johnston & Co. , Inc.)
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Liberalized ”viability” of company
requirements
Financial qualifications related to company
working interest and work commitment
Past exploration expenditure can be cost
recoverable in new blocks
Filipino Participation Incentive Allowance
(FPIA)
Financial Qualification
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PCR
PCR
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1 offers
1 offers
easy access to data
easy access to data
excellent contractual terms
excellent contractual terms
high petroleum potential
high petroleum potential
basins/areas
22 NW Palawan SW Palawan E Palawan Sulu Sea Reed Bank Proven oil/gas provinces Surrounded and near similar oil/gas geology in Malaysia, Brunei & Indonesia Analogous to some Vietnam / S. China oil structures Proximity to proven Proximity to proven petroleum provinces petroleum provinces
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Very high success rates in NW
Very high success rates in NW Palawan Palawan
by world standards
by world standards
Success rates in NW Palawan basin (58 wildcat wells) 35% 29% 9% 9% 5%10% 3% Dry Oil Discovery Gas Discovery O&G Discovery O&G Shows Oil Show Gas Show
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Total of 46 contract
areas being offered
(total area ~222,000 sq km)
Located in shallow to
ultra deep waters close to producing fields in NW Palawan and in vast frontier areas in Sulu
Sea, East Palawan and Reed Bank
Contract areas
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Key dates
Key dates
Issuance of related circulars June 2003 Announcement / Round opening 5 August 2003
Physical data room opening August 2003 to February 2004
Virtual data room opening September 2003 to February 2004 Road shows September 2003 to November 2003 Company evaluation of areas August 2003 to February 2004
Round closing 2 March 2004 Contract awarding May 2004
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Conclusion
Conclusion
The DOE is ready to assist in any possible
way, those who may be interested to explore in the Philippines.
In PCR-1, we have new information, excellent
contractual terms and conditions and areas that are highly prospective.
27 www.doe.gov.ph/pcr/www.doe.gov.ph/pcr/
DOE Contact
DOE Contact
MR.
MR. EDUARDO V. MAEDUARDO V. MAÑÑALACALAC Undersecretary Direct line: (63-2) 840-2236 Fax no.: (63-2) 840-2138 Mobile: (63-917) 523-7781 E-mail: [email protected] DEPARTMENT OF ENERGY
Energy Center, Merritt Road, Fort Bonifacio, Taguig Metro Manila, Philippines 1201