Project Title : COAL TRADING AND INTEGRATED SERVICES Project Location/s : Bauan, Batangas Naga, Cebu Malangas, Zamboanga Sibuguey Tondo, Manila Nature of Project : Coal trading Implementing Subsidiary : PNOC-Exploration Corporation (PNOC-EC) JV Partners & Percent Equity: PNOC-EC – 100% Project Description: PNOC-EC, aside from selling the coal produced from its mine/s, it also trades coal supplied by other producers both from domestic and foreign sources. To support its trading activities, PNOC-EC presently operates terminals in Bauan (Batangas), Naga (Cebu), Malangas (Zamboanga Sibugay) and Tondo (Manila). These terminals serve as receiving ports, stockpiling, blending and screening of coal for clients availing of the services. It caters to customers from different cement, industrial plants/small boiler users, paper mills/manufacturing sectors. The two (2) coal terminals: Naga and Malangas coal terminals has the same operations centered basically on coal trading, blending and other related activities. On the other hand, the North Harbor and Batangas coal terminals provide integrated services to local/imported shipments which includes among others handling/hauling services and fuel/lubes sales. Status as of September 30, 2012: Total volume of coal sold as of September 30, 2012 totaled 220,678.109 metric tons (MT) of which 44% (96,128.511MT) came from the sale of Semirara coal; 50% (110,747.692MT) from PNOC-EC’s own production in Malangas and the 6% (13,801.906MT) came from various Cebu coal suppliers. To date, no export sale was made due to depressed condition of the market and PNOC-Management’s directive to focus on the sale of local coal.

Project Title : ZAMBOANGA SIBUGAY Project Location : COC No. 41, Zamboanga Sibugay

(Barangay Little Baguio, Municipality of Imelda and Barangay Poblacion, Municipality of Diplahan, Province of Zamboanga del Sur)

Nature of Project : Coal Mining (development and production) Implementing Subsidiary : PNOC-Exploration Corporation (PNOC-EC) Project Description: The Lumbog Coal Project is part of PNOC-EC’s long term goal of developing a second coal mine within the contract area COA No. 41. Located south of the present Integrated Little Baguio (ILB) coal mine, the Lumbog project covers an area of about 300 hectares and a resource of approximately 3.8 million metric tons (MT). The coal mine is being operated under a joint venture agreement with SK Philkor. The project is expected to commence operation by 2012 with an estimated annual coal production of 200,000 metric tons. The Integrated Little Baguio Coal Mine that was previously operated by PNPC-EC’s Joint Venture partner, the Taiwan Overseas Mining Co. (Phils) Inc. (TOMC) is now being operated by PNOC-EC starting March 16, 2009. The coal mine is located at Brgy Little Baguio, Municipality of Imelda and Brgy Poblacion, Municipality of Diplahan and is producing about 108,000 tons annually. Based on evaluation, the remaining recoverable reserves of the Integrated Little Baguio Coal Mine is about 1,000,000 tons with a life mine of 11 years. Aside from Lumbog and ILB, PNOC EC is also supervising twenty-one (21) Small Scale Coal Mining Operations within COC 41. Further, we are also exploring areas in Malongon, Lower Butong, and Lalat, which are also part of the COC. Malongon exploration activities started drilling on December 15, 2009. Actual drilling meterage as of year-end 2010 was 4,003.5 meters, exceeding the targeted total aggregate depth of 3,750 m. Liquidated damages were paid by the drilling contractor by providing additional drilling services (beyond 3,750 m.) as a result of the delay in the completion of the drilling project.

Status as of September 30, 2012:

A. Integrated Little Baguio (ILB)

Continuous repair and rehabilitation of Mine 1. For ILB Mine 2, various repairs of approximately 139 sets and grading and relagging of about 139 meters were conducted. For YTD September 2012, a total of 36,884 MT were produced from ILB Mine 1 and 20,744 MT for ILB Mine 2.

B. Lumbog Coal Project

Development at Lumbog Coal Project Main Shaft remains suspended due to power curtailment and the absence of steel arches. However, timbers sets may serve as temporary alternative underground support since the road header and blasting materials have already arrived at the project site.

Project Title : Isabela Coal Mine and Power Plant Project (COC No. 122) Project Location : City of Cauyan and Municipalities of Benito Soliven

and Naguillan, Province of Isabela Nature of Project : Coal Mining and Power Plant Operation Implementing Subsidiary : PNOC-Exploration Corporation (PNOC-EC) (100%) JV Partners and Percent Equity: PNOC EC is still in the process of firming up the

Business Plan for the Project as options for the capacity of the Power Plant is being reviewed considering the amount of mineable coal reserves, power supply and demand and social acceptability of the Project. As such, PNOC EC is still undertaking the Project on its own with plans of partnering with the private sector.

Project Brief: PNOC EC is the holder of COC 122 which straddles portions of the city of Cauayan and the municipalities of Benito Soliven in Isabel. The project consists of a coal mine production area and mine-mouth power generating facility. Liginite coal will be mined from three (3) mining areas in Cauayan City, Municipality of Benito Soliven and Municipality of Naguilian, with total reserves of 28 million metric tons. The mine will supply coal as fuel to the power plant, which will be situated in Cauayan City, with an initial capacity of 50 MW. The projects aims to promote the use of indigenous coal resources and address local energy demand requirement. Consequently, the project is expected to bring widespread economic benefits to the province of Isabela while ensuring that concerns on the environment and stakeholders remain paramount. Project Status as of September 2012:

• PNOC EC has prepared the individual case folders/profile of households and continuously doing house-to-house disclosure of the LARP entitlement to all affected households in Cauayan City and Benito Soliven. The preparation of the Terms of Reference (TOR) for the LARP pre-implementation consultancy is underway.

• The procurement for the engagement of GIS Consultant for the Grid Impact Study has been processed.

• Resolution for project endorsement was approved by the Sangguniang Panlunsod (SP) of Cauayan City and duly conformed by the City Mayor on june 15, 2012.

Project Title: Surigao Coal Exploration Project (COC No. 140) Project Location: Tago-Cagwait, Surigao Sur Nature of Project: Coal Exploration Implementing Subsidiary: PNOC Exploration Corporation (PNOC EC) Project Brief: Awarded by the Department of Energy in July 2005, the contract area of COC No. 140 covers three coal blocks or approximately 3,000 hectares that are located in the towns of Tago and Cagwait in Surigao Sur in eastern Mindanao. The site is serviced by old logging roads and is accessible from the port of Diatagon (36 kilometers). The former PNOC Coal Corporation (PCC) conducted the mapping of the coal basin that covers the region between Surigao Norte and Davao Oriental. A number of promising areas that included the coal prospects of COC 140 were identified during the subsequent detailed exploration work. The earlier studies by PCC and the 1985 Wardell-Armstrong report estimated the presence of approximately 42 million MT of potential coal resource in Surigao Sur, consisting mainly of Miocene-age seams that are typically lignite to sub-bituminous in rank. Project Status as of September 2012: PNOC EC’s request for the 2-year extension of COC 140’s exploration phase was approved by DOE on December 5, 2011. With this approval, the PNOC EC Board in its meeting on March 27, 2012, likewise approved EC Management’s request to seek a joint venture (JV) partner to operate COC 140. PNOC EC has not yet started any activities because they are still looking for JV partners.

Project Title: Isabela Coal Exploration Project (Coal Operating Contract (COC) No. 141) Project Location: Municipality of Benito Soliven, Province of Isabela Nature of Project: Coal Exploration Implementing Subsidiary: PNOC Exploration Corporation (PNOC EC) Project Brief: The COC 141 which covers 3 blocks, equivalent to a project area of 3,000 hectares was awarded by the DOE to PNOC EC on July 5, 2005. The contract area is adjacent and located north of PNOC EC’s COC 122. It is believed that the northern extension of the coal deposit in COC 122 is located at the COC 141 project area. COC 141 is projected to augment the production of COC 122 in the long term. Project Status as of September 2012:

• PNOC EC together with the DOE-ERDB representative met with the Municipal Administrator of Benito Soliven and the Mayor of Naguilian on July 9, 2012 to request for clearance to conduct exploration activities for COC 141.

• PNOC EC also met with Congresswoman Go and staff and discussed forward plans in exploring COC 141.

Project Title: Siay Coal Exploration Project (COC No. 152)

Project Location: Municipality of Siay,

Province of Zamboanga Sibugay Nature of Project: Coal exploration Implementing Subsidiary: PNOC Exploration Corporation JV Partners and Percent Equity: PNOC EC 49%

Agusan Petroleum & Mineral Corp. 51% Project Brief: The COC 152 was signed on November 2008, where PNOC EC holds 49% and partner Agusan Petroleum and Minerals Corporation holds the remaining 51%. The COC 152 is composed of 6,000 hectares located in the Municipality of Siay, Province of Zamboanga Sibugay. It is located within the Malangas Coal Reservation. The JV partners submitted a coal exploration report to DOE in October 2010 requesting relinquishment of the COC 152 due to unfavorable drilling results. Project Status as of September 2012: PNOC EC awaiting approval from the DOE of relinquishment of COC 152. The decision to relinquish the contract is due to the fact that the project area does not host the volume of coal that could be produced economically.

Project Title: Domestic Petroleum Exploration Project Location: Offshore West Palawan, Cagayan, Mindoro, other

Philippine sedimentary basins Nature of Project: Petroleum Exploration Implementing Subsidiary: PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity: NONE Project Brief: PNOC EC continues the evaluation of the petroleum potential areas other than its existing service contracts for possible new ventures. These areas include potential blocks to be offered by the DOE under the Philippine Energy Contracting Round (PECR), and petroleum blocks offered by other SC operators. PNOC EC participated in the formal launching of the 4th Philippine Energy Contracting Round (PECR 4) on June 30, 2012. Project Status as of September 2012: The company is still awaiting the release by DOE of bid winners of PECR4.

Project Title : Energy Supply Base Project Location : Mabini, Batangas Nature of Business : Private and public warehousing, pier servicing and all

businesses related to or in support of logistic facilities for onshore and offshore exploration activities in petroleum and other energy related fields.

Implementing Subsidiary : PNOC Exploration Corporation Project Brief: PNOC-EC Energy Supply Base (ESB) is located in the municipality of Mabini, Batangas covering a total area of 19 hectares. ESB is presently carrying out business and activities such as, private and public warehousing, pier servicing and all businesses related to or in support of logistic facilities for onshore and offshore exploration activities in petroleum and other energy related fields. Currently, ESB generates income from the following services and/or activities: pier servicing, warehousing/space rentals, bunkering, truck scale, equipment rental, royalty, water supply and manpower services. Project Status as of September 2012: For YTD September 2012, ESB has a total actual vessel accommodation of 161 which was 1.8% lower compared to the targeted vessel accommodation of 164 due to low energy-related activities. ESB’s actual total area occupancy rate for YTD September 2012 registered at 47,350 sq.m., which was 15.6% lower compared to the targeted 56,100 sq. m. due to client’s reduction of leased areas and the on-going construction of ESB’s Admin. Bldg.

Project Title: Overseas Coal Project Project Location: Indonesia, Australia and other areas Nature of Project: Coal Exploration Implementing Subsidiary: PNOC Exploration Corporation (PNOC EC) Project Brief: PNOC EC is venturing into the coal mining business in Indonesia in order to ensure a stable and price-competitive supply of coal for the Philippine market. In 2008, PNOC EC signed a Memorandum of Agreement with Putra Asyano Mutiara Timur (PAMT) for the conduct of technical, legal, economic due diligence to determine the viability and commerciality of operating a coal mine project in the company’s concession area in Central Kalimatan, Indonesia. The technical due diligence started in September 2008 with reconnaissance work that mapped several coal outcrop locations and identified a number of alternative transport and shipment routes that PNOC EC could use once the company decides to produce coal from the project. Likewise, the legal due diligence commenced in October 2008 with the engagement of the consultancy services of an Indonesian law firm. However, the measured mineable coal was found to be marginal. Subsequently, on December 15, 2010, the PNOC EC Board approved the termination of the Heads of Agreement between PNOC EC and PT Putra Asyano Mutiara Timur (PAMT).

Project Title : Overseas Petroleum Exploration Project Location : Indonesia, Australia and other areas Nature of Project : Coal Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : (No existing project yet) Project Brief: PNOC EC explores the possibility of establishing strategic business alliance with foreign mining companies and the viability of operating a coal mine project overseas to pursue its mandate of ensuring the stable supply of coal for the domestic market. The company conducted legal and technical due diligence for a coal concession located in Ampah, Central Kalimantan that covers an area of approximately 1,027 hectares and potential resource of 14 million metric tons. However, the measured mineable coal was found to be marginal. Subsequently, on December 15, 2010, the PNOC EC Board approved the termination of the Heads of Agreement between PNOC EC and PT Putra Asyano Mutiara Timur (PAMT).

Project Title: Service Contract 37 - Cagayan Project Location: Isabela and Quirino Nature of Project: Petroleum Exploration Implementing Subsidiary: PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity: PNOC EC 100% Project Brief:

Service Contract 37, referred to as the Cagayan block, covers 360 sq. km. in Santiago City, Isabela and Quirino provinces. It was awarded by the Department of Energy in July 18, 1990. It entered the production period in July 1997 when the San Antonio gas field was declared commercial by the DOE.

Project Status as of September 2012 Joint Venture SC meeting was conducted to seek approval for the Terms of Reference (TOR) and Instruction to Participates on the bidding of the SC block. However, TOR and Instruction to Participants required additional revision. They also conducted ocular inspection of Port Irene, Cagayan as part of pre-drilling activities for drilling of Mangosteen well. The assessment report for SC prospectivity has been completed and submitted for editing.

Project Title: Service Contract 47 – Offshore Mindoro Project Location: Offshore Mindoro Nature of Project: Petroleum Exploration Implementing Subsidiary: PNOC EC JV Partners and Percent Equity:

JV Partners Participating Interest

PNOC EC (Operator) 97% PetroEnergy Resource Corporation

2%

Basic Energy Corporation 1% Project Brief: SC 47, covering an area of 14,667 square kilometers in Offshore Mindoro was awarded on January 10, 2005 by the Department of Energy (DOE) to PNOC EC and Petronas Carigali. On January 10, 2008, PNOC EC assumed operatorship of the block after Petronas relinquished its interest in the block due to unfavorable results of the Kamia 1 well drilled in 2007. PNOC EC now holds 97% interest, with partners Petro Energy Resources Corporation and Basic Energy Corporation holds 2% and 1% participating interests respectively. Project Status as of September 2012: The project’s technical report is 95% completed. PNOC EC’s request for the extension of sub-phase 2, is still being evaluated by DOE.

Project Title: Service Contract 57- Calamian Project Location: Offshore Northwest Palawan Nature of Project: Petroleum Exploration Implementing Subsidiary: PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity China National Offshore Oil Company

International Limited (CNOOC) 51% PNOC EC 28% Mitra Energy Limited (MITRA) 21%

Project Brief: Covering an area of 7,200 square kilometers, SC 57 is located in offshore northwest Palawan, west of Calamian islands. It was awarded on September 15, 2005 by the DOE to PNOC EC. It later farmed out portions of its interest to China National Offshore Oil Company (CNOOC) and Mitra Energy Limited (MEL). Currently, the company holds 28% interest with CNOOC and MEL holding 51% and 21%. In 2008, detailed geological and geophysical studies were conducted to enhance the block’s prospectivity. A detailed seismic program is being planned to cover the most prospective leads, most of which are in deepwater locations to mature them into drillable status. However, the seismic program is contingent on the DOE’s approval of partners’ participation – which was filed in April 2006. Project Status as of September 2012: On going discussions with the Department of Energy (DOE) and the Office of the President (OP) to resolve issues about PNOC EC’s request for the approval of the Transfer of Participating Interests to CNOOC and Mitra.

Project Title : Service Contract 58 – West Calamian Project Location : Offshore NW Palawan Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC-Exploration Corporation (PNOC-EC) JV Partners and Percent Equity : PNOC-EC 50%

Nido Petroleum Ltd. (Operator) 50%

Project Brief: Service Contract 58, referred to as the West Calamian block, is a deepwater acreage covering an area of 13,440 square kilometers at a water depth of 700 to 2,000 meters. It was awarded to PNOC EC by the Department of Energy (DOE) on January 12, 2006. The block lies west of SC-57 and SC 38. PNOC EC and Nido Petroleum Ltd. of Australia currently hold 50% participating interests each, with the latter as the operator of the block.

Project Status as of September 2012: The 2D seismic data interpretation from Bikuda-Bulador Leads is ongoing.

Project Title : Service Contract 59 – West Balabac Project Location : Offshore SW Palawan Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC- Exploration Corporation (PNOC-EC) JV Partners and Percent Equity : PNOC-EC 25% BHP Billiton Petroleum Philippines 75% Project Brief: Service Contract 59, referred to as the West Balabac, covers 14,760 sq. km. in offshore Southwest Palawan. It was awarded to PNOC EC by the Department of Energy (DOE) on January 13, 2006. SC-59 is located north of recent deep-water petroleum discoveries in offshore Malaysia and may share a common petroleum system with them.

PNOC EC acquired 2,056.475 km new 2D seismic data in November 2006 using CGG Veritas’ M/V Veritas Voyager and has satisfied its obligations with the DOE for the first two sub-phases of the SC-59 work program. Follow-up seismic program involving 363.40 km of 2D data has been completed by PGS’ M/V Orient Explorer from November 29, 2009 to December 04, 2009. A large 3D seismic survey has recently been completed with a total coverage of 3,075.85 sq km.

The Participating Agreement with BHP Billiton has been signed on November 24, 2009, which assigns BHP as the operator with 75% working interest in SC 59. PNOC EC as an active partner holds 25%. Project Status as of September 2012:

• 3D and 2D Seismic Data processing has been completed and interpretation of 3D and 2D dataset on-going.

Project Title : Service Contract 63 – East Sabina Project Location : Offshore Southwest Palawan Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity: PNOC EC (Operator) 50%

Nido Petroleum 50% Project Brief: The SC 63 East Sabina was awarded on November 24, 2006. It was formerly the Area-1, one of the four blocks offered by the DOE under the Philippine Energy Contracting Round (PECR) in 2005 which was jointly applied for by the PNOC EC and Nido Petroleum. The Service Contract is under 7-year work program divided into 5 subphases. It is now on its 2nd subphase which is an integration of the original subphase 2 and subphase 3. Project Status as of September 2012: PNOC EC completed well specific shallow gas study on 14 July 2012 and review of the draft report is on-going. In the well planning and initial preparations for drilling, EC is awaiting for the geomechanics study while the preparation of basis of design for the Apribada prospect is ongoing.

Project Title : Jatropha Plantations Project Location : Various locations Nature of Project : Jatropha plantation development and maintenance Implementing Subsidiary : PNOC-Alternative Fuels Corporation (PAFC) Total Project Cost : P500 Million Project Brief : In order to pursue the national government goal of diversifying the country’s energy resources and reducing dependence on imported fuel, the PNOC – Alternative Fuel Corporation (AFC) undertake the development, production and distribution of biodiesel as an alternative fuel source through the establishment of Jathropa plantations.

The project will be carried out in partnership with various farmers-cooperatives, local government units, other government agencies and private entities. Plantation areas were identified in various locations around the country. The project will be initiated through the establishment of production nurseries where Jathropa seedlings will be propagated and subsequently transferred to plantation areas.

Project status as of September 2012: The following are the results of PAFC’s negotiation with the cooperatives/LGUs for the signing of the amended contract /closure/termination: Out of the 21 contracts to be negotiated and signed, 18 (from various areas) has already been signed, 2 contracts (Zambales and Surigao del Norte –Mainit) was terminated as of October 31, 2011. The remaining 1 (Rizal, Montalban) was signed on December 23, 2011 (notarial date).

Project Title : Petrochemical Industrial Estate Project Project Location : PNOC-AFC Industrial Park, Mariveles, Bataan Nature of Project : Manage, operate and develop some 530 hectares

of land in Bataan as a Petrochemical Industrial Estate known as “Petrochemical Park”

Implementing Subsidiary : PNOC-Alternative Fuels Corporation (PAFC) Brief Background: In 1993, the then President Fidel V. Ramos directed the Philippine National Oil Company to spearhead its development and promotion of the Philippine petrochemical industry hence, PNOC was assigned a land area of about 530 hectares in Limay and Mariveles, Bataan to embark on the development of the country’s first petrochemical complex and to promote private sector investments in petrochemical plants, which will produce low and high-density polyethylene (LDPE and HDPE), polypropylene (PP), polyvinyl chloride (PVC) and ethylene glycol.

Project Status as of September 2012:

At present, Petrochemical Park’s locator still remained at three, namely: NPC Alliance (NPC A), Philippine Resins Industries, Inc. (PRII) and Philippine Polypropylene Inc. Jetty rehabilitation

The 122 days extension granted by PAF to its contractor JDL started on August 6, 2012. Currently, JDL is working on the wrapping of the open piles of the jetty to prevent damage of the facility. Said work is already part of the 122 days extension. As of the latest inspection on September 28, 2012 by PAFC, ACO Consultant and JDL, they agreed that the total accomplishment of the jetty rehabilitation was 60.42%.

Amendment to P.D. 949

The Committee Report (CR) on Senate Bill No. 2916 has been filed and will be sponsored by Sen. Escudero upon resumption of session in October 2012.

Kampac Oil PAFC and Kampac Oil M.E. FSZO, Inc. is currently discussing/ negotiating on the time frame that will be spent on the conduct of the feasibility study by Kampac for the proposed development of about 125 hectares of land as industrial & energy city.  

Project Title : Persistent Organic Pollutants (POPS) Project Project Location : PNOC-AFC Industrial Park, Mariveles, Bataan Nature of Project : Hosting and operation of the polychlorinated

biphenyls (PCBs) destruction facility to be located at the PNOC-AFC Industrial Park

Implementing Subsidiary : PNOC-Alternative Fuels Corporation (PAFC) Brief Background : The PNOC-AFC has partnered with Department of Environment and Natural Resources (DENR) under the funding of United Nations Industrial Development Organization (UNIDO) for the implementation of the POPS project. The project is part of a global program which will introduce and apply a non-combustion technology to destroy polychlorinated biphenyls (PCBs) wastes. PCB destruction equipment and its installation will be funded and provided by UNIDO while PNOC is in charge of the building structure and other civil works. POPs operation is expected to lasts for 5 years to destroy/treat a total estimated PCB waste of 6,000 tons for the entire Philippines.

Project Status as of September 2012:

After the successful treatment of the 2,800 kgs of polychlorinated biphenyls (PCB) oil from Goodyear Philippines, Inc. in March 2012, the commercial testing of the destruction of low level PCB waste was temporarily stopped due to the breakdown of the sodium manufacturing equipment on April 16, 2012. IPM pulled out some parts of said equipment to undergo repair.

On June 19, 2012 PAFC hauled liquids from MERALCO of 6.6 metric tons and used the liquid transfer system. During the process however, PAFC observed unusual noise and the speed of the transfer was unusually slow. The operation was stopped and PAFC requested IPM to check the liquid transfer unit. On June 21, 2012 IPM engineers checked the unit and found no physical damage but experienced the same PAFC observation when the equipment was run.

IPM claimed on July 3, 2012 that both the sodium manufacturing equipment and the liquid transfer unit have been repaired.

The resumption of the commercial testing which was scheduled October 12, 2012 was again put on hold because Kinectrics, the Canadian equipment provider did not arrive as scheduled.

Project Title : Costa Verde Project, Rosario, Cavite Project Location : Rosario, Cavite Implementing Subsidiary : PNOC Development and Management Corporation JV Partners and Percent Equity : Sta. Lucia Realty

Project Brief The PNOC-Development and Management Corporation (PDMC) entered into a joint venture agreement with Sta. Lucia Realty and Development, Inc. for the development of Costa Verde Project. The area covers about 32 hectares and was subdivided into 539 saleable lots. PDMC owns 51% shares in the joint venture while 49% goes to Sta. Lucia Realty.

Project Status as of September 30, 2012: As of September 30, 2012, a total of 18 residential lots were sold.

Project Title : EL Pueblo, Sta. Mesa Project Location : Sta. Mesa, Manila Nature of Project : Condominium Project Implementing Subsidiary : PNOC Development and Management Corporation JV Partners and Percent Equity : Phoenix Sun International Corporation

Project Brief This is a 4.7-hectare lot of PNOC in Anonas Street, Sta. Mesa Manila sold to Phoenix Sun International Corporation in the amount of P304.3 million. PDMC now owns eighty-seven (87) condo units at El Pueblo with an aggregate area of two thousand twenty five (2,025) square meters. This was realized by virtue of a provision in the contract to sell executed between Phoenix Sun International Corp. and PDMC, which state that the latter can buy a portion of the property with the total contract price is P23.757 million. The said units are being marketed and sold by El Pueblo Marketing Corporation (EPMC), a marketing subsidiary of Phoenix Sun International Corporation . As its marketing agent, PDMC pay a marketing commission equivalent to ten (10) percent of total contract price.

Project Status as of September 30, 2012:

As of YTD September 2012, a total of nine (9) units have been sold, leaving a balance of 48 units to be sold for the remainder of the year.

Project Title : GMA Abot-Kayang Pabahay at Palupa Socialized Housing Project

Project Location : Rosario, Cavite Nature of Project : Socialized Housing Project for qualified beneficiaries

who are residents of Rosario, Cavite Implementing Subsidiary : PNOC Development and Management Corporation

Project Brief Covers land area of 25 hectares to be subdivided into a minimum of 40m2 and maximum of 100m2 lots for a total of 3,631 lots for awarding to informal dwellers already occupying the property. The project commenced on December 10, 2001. The remaining lots unsold are currently occupied by residents who are not willing to comply with EO 59 requirements such as submission of application forms, records of income, marriage contract, processing fee of P500 etc. Project Status as of September 30, 2012: For YTD September 30, 2012, PDMC received PhP7.5M from LGU Rosario for the sale of Socialized housing project.

Project Title : UPLB Land Project Development Agreement Project Location : University of the Philippines (UP) Los Baños, Laguna Nature of Project : Evaluation and assessment of the potential

of the UPLB land grants and other real estate for purposes of supporting the UP System in accordance with RA 9500

Implementing Subsidiary : PNOC Development and Management Corporation JV Partners and Percent Equity : University of the Philippines

Project Brief The University of the Philippines (UP) was declared a national university by virtue of Republic Act No. 9500. Under Sec. 22 of RA No. 9500, the UP System shall be supported by the State through, among others, land grants and use of other real properties. To carry out the intents of these grants, UP may enter into joint ventures for the use of real properties provided that the same shall not result in the alienation of the real properties. UPLB has approximately 14,665 has. of land grants consisting of the university campus, tree farms, experimental sites, field laboratories, stations and the Makiling Forest Reserve. UP has identified PDMC as the exclusive estate manager of UPLB’s land grants and other real estate not exclusively used for educational purposes and shall be the lead developer and owner’s representative in the development of said properties for purposes of supporting the UP System in accordance with RA 9500. In September 2009, PDMC and UP entered into a Memorandum of Agreement which covers a 3-year period from September 2009. PDMC envisions a unique development model for UPLB that focuses on optimizing resource potential with utmost consideration for sustainable development objectives and climate change mitigation and adaptation, combining existing plans and programs of UPLB into a holistic development plan. The ultimate goal of the Master Plan is to transform UPLB into a model of integrated sustainable resource development and climate resilience through green projects in water and water supply, renewable energy, transport, forest management, agriculture, ecotourism, real estate, waste management and livelihood. The development plan shall optimize existing infrastructure and resources and ramp-up projects to commercial-scale providing savings in costs, revenues and economic benefits to all stakeholders and communities involved.

Required documents are still being prepared and collated by PDMC for submission to UP. Project Status as of September 30, 2012 The prospective investor for the UPLB project found out that the project was not feasible because of the high project cost. Currently, PDMC is looking at reducing the project cost to make it viable.

Project Title: Buguias Tinoc Geothermal Project – 20MW Project Location: Ifugao, CAR

Operator: Magma Energy Resources, Inc. JV Partners and Percent Equity: PNOC RC – 5% Magma Energy Resources, Inc. – 95% Nature of Project: Geothermal Exploration Implementing Subsidiary: PNOC RENEWABLES CORPORATION Project Brief A Memorandum of Agreement (MOA) for the development of Buguias Tinoc Geothermal Field was forged between Magma Energy Resources, Inc. (Magma) and PNOC Renewables Corporation (PRC). PRC has 5% share on the project. Magma has offered PRC the right to buy into the company on a “fully mitigated risk of exploration” basis by allowing and facilitating, effectively, the deferral of payment on PRC’s proportionate subscription though and until the completion of the exploratory phases of the work program and providing further that such payments remain at the sole discretion of PRC. The “fully mitigated risk of exploration” means that if geothermal resources in commercial quantity could not be established then the private sector stockholders shall solely bear the loss on the irreversible investment incurred through and until the abandonment point. Magma has conducted planning and engagement of engineering services for the resource assessment thru remote sensing. Project Status as of September 2012: Aerial survey and geologic report has been done. However, the NCIP permit is still being processed. The project has been granted a 2-year project extension by the DOE.

Project Title: 60 MW Abuan Hydropower Project Project Location: Ilagan, Isabela Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Abuan Hydropower Project. The Abuan Hydropower Project is a reservoir type hydropower development along the Abuan River 6.5 km upstream of its confluence with the Pinacanauan de Ilagan River. It will be located in Barangay Villa Imelda, Ilagan, Isabela. The project has a potential capacity of 60 MW and is estimated to generate about 172 GWh of electricity per year. The proposed project will be connected to the Luzon grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of Isabela, the rest of Cagayan Valley provinces and cities and other areas in the island of Luzon. Project Status as of September 2012: The project has been surrendered to the DOE based on the feasibility study report submitted showing that the project is non-feasible for run-of-the river.

Project Title: 18 MW Dulangan Hydropower Project Project Location: Baco, Oriental Mindoro Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Dulangan Hydropower Project. The Dulangan Hydropower Project is a run of the-river type hydropower development along Dulangan River. It will be located in the Municipality of Baco, Oriental, Mindoro. The project has a potential capacity 18 MW and is estimated to generate about 62 GWh of electricity per year. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers in the island of Mindoro. Project Status as of September 2012: The request for extension of the service contract is still pending.

Project Title: 20 MW Jalaur Hydropower Project Project Location: Calinog, Iloilo Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Jalaur Hydropower Project. The Jalaur Multi Purpose Project is a reservoir/impounding type of hydropower development along Jalaur River. It will be located in the Municipality of Calinog, Iloilo. The project has a potential capacity of 20 MW and is estimated to generate about 58.10 GWh of electricity per year. The proposed project will be connected to the Visayas grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of the island of Panay and other islands in the Visayas. Project Status as of September 2012: The project has been formally surrendered to the DOE, however, PNOC RC will apply for a new hydro project contract for the NIA project.

Project Title: 45 MW Nalatang B Hydropower Project Project Location: Kabayan, Benguet Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Nalatang B Hydropower Project. The Nalatang B Hydropower Project is a run-of-the-river type of hydropower development along Natalang River. It will be located in the Municipality of Kabayan, Benguet. The project has a potential capacity of 45 MW and is estimated to generate about 207.6 GWh of electricity per year. The proposed project will be connected to the Luzon grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of CAR and the rest of Luzon. Project Status as of September 2012: The request for the extension of service contract is still pending.

Project Title: 11 MW Okoy Hydropower Project Project Location: Valencia, Negros Oriental Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Okoy Hydropower Project. The Okoy Hydropower Project is a run-of-the-river type hydropower development along Okoy River. It will be located in Barangay Palinpinon, Valencia, Negros Oriental. The project has a potential capacity of 11 MW and is estimated to generate about 24.91 GWh of electricity per year. The proposed project will be connected to the Visayas grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of the island of Negros and other islands in the Visayas. Project Status as of September 2012: Final Feasibility Report is now under review; Initial Environmental Examination (IEE) has been submitted to DENR; has obtained endorsement from the LGU; NWRB water rights application is on-going. PNOC-RC has pending request for the project for an extension of service contract.

Project Title: 33 MW Pacuan-Guinobaan Hydropower Project Project Location: La Libertad, Negros Oriental Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Pacuan-Guinobaan Hydropower Project. The Pacuan Guinobaan Hydropower Project is a pump-assisted hydropower development along the Pacuan and Guinobaan Rivers. The project has two components: the power generation and the pumping components. The project will be located in Barangay Balogo, Guihulngan and Barangay Pacuan, La Libertad, Negros Oriental. The proposed project has a potential capacity of 33 MW and is estimated to generate about 118 GWh of electricity per year. The proposed project will be connected to the Visayas grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers in the island of Negros and other islands connected to the Visayas grid. Project Status as of September 2012: Technical Feasibility Study has been done; On-going IEC activity and acquisition of government permits and clearances. The project has pending request for extension of service contract.

Project Title: 20 MW Pasil B Hydropower Project Project Location: Lubuagan, Kalinga Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Pasil B Hydropower Project. The Pasil B Hydropower Project is a run of the-river type hydropower development along Pasil River. It will be located in the Municipality of Lubuagan, Kalinga. The project has a potential capacity of 20 MW and is estimated to generate about 78.9 GWh of electricity per year. The proposed project will be connected to the Luzon grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of CAR and other provinces in the island of Luzon. Project Status as of September 2012: The conduct of the project’s Feasibility Study has been awarded to EDCOP/FDC.

Project Title: 22 MW Pasil C Hydropower Project Project Location: Lubuagan, Kalinga Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Pasil C Hydropower Project. The Pasil C Hydropower Project is a run of the-river type hydropower development along Pasil River. It will be located in the Municipality of Lubuagan, Kalinga. The project has a potential capacity of 22 MW and is estimated to generate about 82.5 GWh of electricity per year. The proposed project will be connected to the Luzon grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of CAR and other provinces in the island of Luzon. Project Status as of September 2012: Information Education Communication (IEC) activities still ongoing.

Project Title: 24 MW Saltan B Hydropower Project Project Location: Balbalan, Kalinga Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Saltan B Hydropower Project. The Saltan B Hydropower Project is a run-of-the-river type hydropower development along the Saltan River. It will be located in Barangay Salegseg, Balbalan, Kalinga. The project has a potential capacity of 24 MW and is estimated to generate about 110.6 GWh of electricity per year. The proposed project will be connected to the Luzon grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of CAR and other provinces in the island of Luzon. Project Status as of September 2012: Conduct of Feasibility Study awarded to EDCOP/Filipinas Dravo Corporation (FDC).

Project Title: 5.4 MW Siaton Hydropower Project Project Location: Siaton, Negros Oriental Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Siaton Hydropower Project. The Siaton Hydropower Project is a run-of-the-river type hydropower development along Siaton River. It will be located in Barangay Apoloy, Siaton, Negros Oriental. The project has a potential capacity of 5.4 MW and is estimated to generate about 18.4 GWh of electricity per year. The proposed project will be connected to the Visayas grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers of the island of Negros and other islands in the Visayas. Project Status as of September 2012: PRC is still reviewing the final feasibility report submitted by EDCOP. Information Education Communication (IEC) activities is still ongoing.

Project Title: 5.4 MW Sicopong Hydropower Project Project Location: Sta. Catalina, Negros Oriental Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Brief Background: In line with the enactment of the “Renewable Energy (RE) Law”, providing fiscal and non-fiscal incentives, PNOC RC’s pursuit for the development of new and renewable energy sources becomes more viable and promising. Hence, in order to be eligible for such incentives, PNOC RC has secured the appropriate registration and accreditation as an RE developer from the Department of Energy (DOE) for the proposed exploration and development of Sicopong Hydropower Project. The Sicopong Hydropower Project is a run-of-the-river type using the potential of the Sicopong River for power generation. Based in the proposed design scheme, major structures of the project will be located in three Municipalities of Negros Oriental, namely, Pamplona, Sta. Catalina and Tanjay City. The proposed diversion weir will be located in Bgy. Calicanan in Pamplona while the powerhouse in Bgy. Amio, Sta. Catalina and portion of the headrace will pass through the area of Tanjay City. The project has a potential capacity of 17.8 MW and is estimated to generate about 30.62 GWh of electricity per year. The project will be connected to the Visayas grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers in the island of Negros and other islands connected to the Visayas grid. Project Status as of September 2012: The project is not feasible. Service Contract was formally surrendered to DOE.

Project Title : MAIBARARA GEOTHERMAL PROJECT Project Location : Laguna, Philippines Project Phase : Pre-Exploration/Confirmation Phase Implementing Subsidiary : PNOC Renewable Corporation JV Partners and Percent Equity : Petro Energy, Trans Asia and PNOC-RC Project Brief Service Agreement for the development of Maibarara Geothermal was recently awarded to Petro Energy Resources Corp. The Maibarara geothermal field is the second resource discovered in the Makiling-Banahaw (Mak-Ban) contract area situated in Laguna, Philippines. It was considered for development by Philippine Geothermal, Inc. (PGI now Chevron) in partnership with the National Power Corporation (NPC) in 1994. Maibarara is located at the western foot at Mt. Makiling, a stratovolcano about 3 kilometers northwest of Bulalo geothermal field. A Joint Venture Agreement among PetroGreen Energy Corporation (PetroGreen), PNOC Renewables Corporation (PRC), and Trans-Asia Oil and Energy Development Corporation was forged on May 19, 2010 wherein the parties agreed to pool their resources together and enter into a joint venture to develop and operate the Maibarara Geothermal Field in Laguna and Batangas. They further agreed that they would establish as Joint Venture Company (JVC), which shall be duly incorporated under the laws of the Republic of the Philippines with the corporate name of Maibarara Geothermal, Inc. PRC has 10% stake in the project.

Parties subscription to the authorized capital stock of the JVC are as follows:

Name of Stockholder

Number of Shares

Par Value

(In PhP)

Amount Subscribed

(in PhP)

Amount Paid-up (in PhP)

% of ownership

PetroGreen Energy Corp.

1,828,125 100.00 182,812,250.00 45,703,125.00 65%

PNOC Renewables Corp.

281,250 100.00 28,125,000.00 7,031,250.00 10%

Trans-Asia Oil and Energy Development Corp.

703,125 100.00 70,312,500.00 17,578,125.00 25%

TOTAL 2,812,500 281,250,000.00 70,312,500.00 100% Project Status as of September 2012:

Construction of the fluid collection re-injection system (FCRS), power plant and transmission line is ongoing. They are expected to be completed by May 2013.

Project Title: Mainit Sadanga Geothermal Project – 20MW Project Location: Mt. Province, CAR

Operator: Magma Energy Resources, Inc. JV Partners and Percent Equity: PNOC RC - 5% Magma Energy Resources, Inc. - 95% Nature of Project: Geothermal Exploration Implementing Subsidiary: PNOC RENEWABLES CORPORATION Project Brief The Mainit Sadanga Geothermal Project also has Magma Energy Resources, Inc. (Magma) as JV Partner of PNOC Renewables Corporation (PRC). PRC has 5% share on the project. The Joint Venture Undertaking was legalized thru a Memorandum of Agreement (MOA). Magma has offered PRC the right to buy into the company on a “fully mitigated risk of exploration” basis by allowing and facilitating, effectively, the deferral of payment on PRC’s proportionate subscription though and until the completion of the exploratory phases of the work program and providing further that such payments remain at the sole discretion of PRC. The “fully mitigated risk of exploration” means that if geothermal resources in commercial quantity could not be established then the private sector stockholders shall solely bear the loss on the irreversible investment incurred through and until the abandonment point. Magma has conducted planning and engagement of engineering services for the resource assessment thru remote sensing. Project Status as of September 2012: For the period covered, no status update given for the activities being undertaken by Magma Energy Resources, Inc.

Project Title : Camsur Geothermal Project (Formerly Mt. Isarog Geothermal Project) Project Location : Camarines Sur

Implementing Subsidiary : PNOC Renewables Corporation

JV Partners and Percent Equity : 100% PNOC-RC Pre-Development

Project Brief

PNOC-RC was awarded a Renewable Energy Contract by the Department of Energy last February 19, 2010. Under RE contract, PNOC-RC committed to explore and develop the geothermal resource in Mt. Isarog into 2 Phases from Pre-Development to Development Phase.

The Pre-Development Phase is scheduled for completion within two (2) years and consists of activities from securing permits, review and validation of previous works and the conduct of fieldworks involving: geology, geochemistry, hydrology, geophysics and other discipline necessary to determine and establish the geothermal potential of the Mt. Isarog area. An exploratory well is programmed after all the pre-development works are completed and result has established a geothermal resource justified for well drilling.

The Development Phase comes in after a declaration of commercial viability of the geothermal prospect for power generation use among others. This is expected to be established only after the drilling of an exploratory well and two (2) confirmatory wells to establish the capacity of the field. Under the RE Contract, PNOC-RC is given 25 years to operate the geothermal field with option to extend by another 25 years.

Terms of Reference (TOR) for the bidding of Pre-Exploration Studies and manpower requirements for individual contracting of surface study activities has been finalized.

The consultation meetings (workplans and the affected sites) with the Camsur Provincial Board, Naga City Mayor John G. Bongat and the city council, and DENR Regional technical Director Felix C. Mendoza on Sept. 20-22, 2010 showed positive results for the project.

Project Status as of September 2012:

• Conducted initial geologic mapping assessment and geochemical analysis of surface manifestations in GOA.

• Perception, socio-economic and ecological survey in four barangays in Goa as part of the Initial Environmental Examination Report.

• Awaiting for the result of the request for Service Contract extension from DOE.

• Conducted pre- Field Base Investigation meeting with NCIP

• Bidding activities (MT/TEM) negotiated bidding, pre-FS eligibility review.

Project Title: PETROLEUM SHIPPING PROJECT - M/T Emilio Jacinto Nature of Project: Tanker Vessel Implementing Subsidiary: PNOC-Shipping and Transport Corporation Year Built: 2007 Tanker Cost: PhP 413,674,631 Type of Contract: 10 Years Time Charter Contract Cargo Capacity: 30,000 MB Project Description: The M/T PNOC Emilio Jacinto is one of the two (2) double-hulled tanker vessels acquired by PSTC being used to transport petroleum black products exclusively for Petron. The vessel is a sleek and compact tanker with DWT of 4,800 MT and a cargo capacity of 30,000 MB. Dimension is 90.38 meters long, 13.80 meters wide and has a depth of 7.28 meters. It was built by Taizhou Zhong Xing Shipyard of China in 2007. The vessel is under Time Charter Contract with Petron for 10 years from 2007 to 2017. Status as of September 30, 2012: The vessel is continuously trading as of September 30, 2012.

Project Title: PETROLEUM SHIPPING PROJECT - M/T LAPU-LAPU Nature of Project: Tanker Vessel Implementing Subsidiary: PNOC-PSTC Year Built: 2007 Tanker Cost: PhP 456,465,148 Type of Contract: 10 Years Time Charter Contract Cargo Capacity: 32,000 MB Project Description:

In line with PSTC’s plan to modernize its fleet, the company acquired two double-hulled tankers in 2008. The acquisition of the double-hulled tankers was also aimed to comply with world standards set by the International Maritime Organization (IMO) and to demonstrate its cooperation with Petron’s Limited Alliance program, which puts a premium on service and safety.

The first of the two tankers was named Lapu-Lapu. Ruian Jiang Nan Ship Preparing Ltd. of China built the vessel in 2007, with a top speed of 12 knots, dimension of 97.5 meters long, 15.6 meters wide, and with a depth of 5.7 meters. The vessel has modern loading and discharging capability that can lift 32,200 barrels of industrial fuel oil in one single loading. Its maiden voyage was in March 2008. The vessel is under a time charter contract for 10 years with Petron Corporation and is entitled to income tax holiday under EO 226 for six (6) years. Status as of September 30, 2012: As of September 30, 2012, the vessel was continuously trading.

Project Title : VESSEL DISPOSAL PROJECT - M/T ANTONIO M. LUNA Nature of Project : Tanker Vessel Implementing Subsidiary : PNOC-Shipping and Transport Corporation Cargo/Capacity : 25,000 MB Type of Contract : Consecutive Voyage Charter Party (CVCP) Year Built : 1994 Year Acquired : 2003 Tanker Cost : PhP226,914,519 Project Description: The M/T Gen. Antonio Luna is a single-hull, double-bottom tanker bought from South Korea in 2003. It is 80.16 meters long and 14 meters wide with a draft of 6 meters. It is a second-hand tanker that was built in 1994. The vessel displaces 3,800 DWT and can carry up to about 25,000 barrels of oil. It is powered by Ssangyong Man B&W diesel engines with break horsepower of 2,285 at maximum revolution per minute (rpm) of 775. Status as of September 30, 2012: The Consecutive Voyage Party Contract (CVCP) with Petron expired in December 2010. Meanwhile, the vessel was under CVCP spot contract (need basis only) with Petron until end of December 2011. As of September 30, 2012, the vessel was on lay-up status at Limay, Bataan Anchorage. The vessel is currently awaiting disposal.

Project Title: PETROLEUM SHIPPING PROJECT - MT JOSE P. RIZAL

Nature of Project: Tanker Vessel Implementing Subsidiary: PNOC – PSTC Year Built: 2003 Tanker Cost: PhP 226,553,879 Type of Contract: 7 Years Time Charter Contract Cargo Capacity: 25,600 MB Project Description: PSTC imported the first secondhand Chinese made vessel named M/T Yong Jie No. 28 in year 2005, which was reflagged and renamed as M/T Dr. Jose P. Rizal. It is a single-hull, double bottom tanker, more than 90 meters long, about 14 meters wide and has a draft of 5.45 meters. The vessel weighs 3,300 tons, powered by Wuxi Side diesel engine, and carries a kilowatt rating of 1500 or 2010 horsepower at maximum rpm of 550. M/T Dr. Jose P. Rizal started commercial operation with Petron Corporation under Consecutive Voyage Charter Party (CVCP) from May 2005 to May 2006 and was replaced by a 7-year Time Charter Contract by Petron effective May 2006. It was granted six (6) years Income Tax Holiday (ITH) from May 12, 2005 to May 13, 2011. Status as of September 30, 2012: M/T Jose Rizal’s Time Charter Contract with Petron expired in December 2011. Retrofitting of the vessel from single to double-hull that commenced on December 5, 2011 was completed on February 14, 2012. Completed drydocking & compliance with SIRE and Class requirements in April 2012. Trading documentation completed on June 11, 2012. As of September 30, 2012, the vessel was continuously trading. It is currently on a 1-year Spot Contract w/ Petron commencing in August 2012. Its first voyage after retrofitting was on August 27, 2012.