What
are the various investment opportunities in energy resource exploration?
PECR 2006 – PETROLEUM AREAS ON OFFER
PECR 2006 offers nine (9) petroleum contract areas covering 7,263,900
hectares in shallow to deep waters within the prospective basins
of East Palawan and Mindoro-Cuyo as well as in the promising basins
of Cagayan, Central Luzon, Visayas and Agusan-Davao.
PETROLEUM CONTRACT AREAS ON OFFER
FOR THE PHILIPPINE ENERGY CONTRACTING ROUND 2006
Contract
Areas |
Hectarage |
Basin |
Area
1 |
860,000 |
Cagayan |
Area
2 |
684,000 |
Central
Luzon |
Area
3 |
1,084,000 |
Mindoro-Cuyo,
Block 1 |
Area
4 |
1,164,000 |
Mindoro-Cuyo,
Block 2 |
Area
5 |
648,000 |
East
Palawan, Block 1 |
Area
6 |
983,900 |
East
Palawan, Block 2 |
Area
7 |
600,000 |
East
Palawan, Block 3 |
Area
8 |
752,000 |
Visayan |
Area
9 |
488,000 |
Agusan-Davao |
Why should I invest
in the Philippines and what incentives awaits me?
FISCAL
TERMS FOR PECR 2006
| Hectarage |
~
400,000to 1,100,000 |
| Contract
Duration |
7
years extendible to maximum of 3 years for exploration; 25 years
extendible for 5 years up to maximum of 3 extensions; provided
that the total number of years of the contract from exploration
to production shall not exceed 50 years |
| Filipino
Participation Incentive Allowance (FPIA) |
1.5%
to a maximum of 7.5% of gross proceeds where the contractor
allows at least 15% participation by Filipino companies |
| Cost
Recovery |
maximum
of 70% of gross income per calendar year; 100 % recoverable
costs for non-capital expenditures and capital expenditures
depreciated over 5 to 10 years; unrecovered costs for the current
calendar year to be carried over in the succeeding calendar
year |
| Production
Sharing |
Government
= 60% of net income
Contractor = 40% of net income |
| Corporate
Income Tax Rate |
35%
of net income on petroleum operations- paid out of government
share |
| Signature
Bonus |
Minimum
of USD 50,000 |
| Prod.
Bonuses - Oil |
Minimum
of: *
USD 300,000 at start of production; USD 500,000 at 25,000 BOPD;
USD 1M at 50,000 BOPD; and USD 2MM at 75,000 BOPD |
| Prod.
Bonuses - Gas |
Minimum
of: *
USD 300,000 at start of production; USD 500,000 at 250 MMCFGD;
USD 1 M at 500 MMCFGD; and USD 2MM at 750 MMCFGD |
| Training
Allowance |
Minimum
of USD 20,000 per year during exploration period (cumulative);
Minimum of USD 50,000 per year during production year (cumulative) |
* Pro-rated
Where are potential
energy resource development sites?
What are the requirements
in applying for a Service Contract?
Requisites for documentation to be submitted by applicants in the
contracting round for petroleum are outlined in Department Circular
No. DC2006-12-0014
|
