4b1 summary of laws.pdf

7/28/2019 4b1 Summary of laws.pdf

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Republic of the PhilippinesDEPARTMENT OF ENERGY

THE PHILIPPINE ENERGY CONTRACTING ROUND

LLAAWWSS &&IISSSSUUAANNCCEESS

Laws and Issuances Governing Petroleum Exploration

1. Oil Exploration and Development Act of 1972 (PD 87)

The Act, conferred by Presidential Decree 87, provides the legal basis for the

exploration and development of indigenous petroleum resources in thecountry authorizing the grant of service contracts entered into thru public

bidding, or through negotiations.

2. Presidential Decree 1857

This law amended certain sections of PD 87 offering improved fiscal and

contractual terms to service contractors with special reference to deepwateroil exploration.

3. Guidelines on Philippine Energy Contracting Round (PECR)

a. DOE Circular No. DC2010-03-0005

Providing additional guidelines for a transparent and competitive system ofawarding service/operating contracts for coal and petroleum prospective

areas amending for this purpose Department Circular No. 2006-12-0014.

b. DOE Circular No. DC2009-04-0004

Reiterating a transparent and competitive system of awarding

service/operating contracts for coal, geothermal and petroleum prospectiveareas repealing for this purpose Department Circular No. 2006-12-0014.

c. DOE Circular No. DC2006-12-0014

Reiterating a transparent and competitive system of awardingservice/operating contracts for coal, geothermal and petroleum prospective

areas, repealing for this purpose Department Circular No. 2003-05-005 andDepartment Circular No. 2005-04-004.

d. DOE Circular No. DC2005-04-004

Investment Promotion and contracting rounds for Geothermal and Coal

Prospective Areas.


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e. DOE Circular No. 2003-05-006

DC 2003-05-006 provides the guidelines to the financial and technicalcapabilities of a viable petroleum exploration and production company.

4. Incentives

a. DOE Circular No. 94-01-01

The allowance of seven and one-half percent (7.5%) of the gross proceedsgranted to Contractor when the aggregate participation in the Contract by

one or more Filipino citizens and/or companies is at least fifteen percent(15%) in respect of the drilling of a well by the Contractor in water depthsbeyond 200 meters, whether within or outside a Deepwater Area.

b. OEA Circular No. 92-10-05

The allowance of seven and one-half percent (7.5%) of the gross proceedsgranted to Contractor when the aggregate participation in the Service

Contract by one or more Filipino citizens and/or companies is at least fifteenpercent (15%) in respect of a Deepwater Contract.

c. OEA Circular No. 87-12-003

The sliding scale allowance from one and one-half percent (1.5%) to seven

and one-half percent (7.5) of the gross proceeds granted to the Contractorwhen the aggregate participation in the Contract by one or more Filipinocitizens and/or companies is from fifteen percent (15%) to thirty percent(30%).

5. Other Applicable Guidelines

a. Department Circular 2007-04-0003

Procedures governing the transfer of rights and obligations in a Petroleum

Service Contract.


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Other national measures

Philippine Environmental Policy Act (Presidential Decree 1151)

Enacted in 1977, this act requires the government and the private sector to

undertake environmental impact assessments of their project activitieswhich may significantly affect the quality of the environment.

Philippine Environmental Code (P.D. 1152)The Code provides a detailed prescription on the management of air quality,

water quality, land use, natural resources and waste.

Environmental Impact Statement System (P.D. 1586)

The decree which took effect in 1978 provides details on Environmental

Impact Statement System.

National Integrated Protected Areas System Act of 1992The act, by virtue of Republic Act No. 7586, provides for the establishment

and management of national integrated protected areas system, defining itsscope and coverage. Section 14 of the NIPAS Act specifies the survey of

energy resources in protected areas solely for data gathering. Anyexploitation and utilization of energy resources found within NIPAS areas

shall be allowed only thru passage of law by Congress.

The Indigenous People's Rights Act of 1997 (Republic Act8371)

Establishes implementing mechanisms to protect and promote the rights ofindigenous cultural communities/indigenous peoples.

4b1 summary of laws.pdf

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