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, 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 for stockpiling, blending and screening of coal for clients availing of the services. It caters to customers from different cement, industrial plants/small boiler users and paper mills/manufacturing sectors. The coal terminals have operations centered basically on coal trading, blending and other related activities. Project Status as of June 2014: PNOC EC continues to market coal from various small-scale coal miners in COC 41 (Zamboanga Sibugay) and from other coal producers.

Project Title : Isabela Coal Mine and Power Plant Project Coal Operating Contract (COC) No. 122 Project Location : City of Cauayan 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 : A Transaction Advisor (TA) was hired through a

competitive bidding to advise PNOC EC in validating the Project’s business plan which includes optimal equity and in selecting partner/s from the private sector for the development of the Project. Validation and selection process is ongoing.

Project Description: COC122 is located some 300 kilometers north of Manila and includes portions of the City of Cauayan and the municipalities of Naguilian and Benito Soliven, all within the province of Isabela, in the Cagayan Valley region. Isabela province is located at the northeastern part of Luzon Island and project areas are mostly rolling and with grazing and barren lands, denuded forests, ad corn plantations. The project is a pioneering undertaking being developed by PNOC EC. It seeks to utilize low rank indigenous coal to fuel an electric power plant employing “progressive mining and rehabilitation method” and “clean coal” technology for the mine and power plant, respectively. It aims to promote the use of indigenous coal resources and augment the energy demand requirement of Isabela and the country as a whole. This project is being undertaken by virtue of COC 122 awarded by the Department of Energy on 23 December 1997, giving PNOC EC exclusive exploration rights over nine (9) coal blocks, totaling 9,000 hectares. Project Status as of June 2014: PNOC EC continues conduct of various Information, Education and Communication (IEC) activities and Corporate Social Responsibility (CSR) activities in impact areas. PNOC EC also continues to conduct preliminary activities in looking for partners for the development of the coal power plant which includes seeking the approval of NEDA for JV.

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 Description: 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. It was awarded by the DOE to PNOC EC on July 5, 2005. Project Status as of June 2014: PNOC EC continues coordination with the DOE to address some local concerns on the project.

Project Title : Trento, ADS – Lingig, SDS Coal Project Coal Operating Contract (COC) No. 184 Project Location : Agusan del Sur – Surigao del Sur Nature of Project : Coal Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) 100% JV Partners and Percent Equity : None Project Description: The coal exploration site is located in the municipality of Trento in Agusan del Sur, and at the municipality of Lingig in Surigao del Sur. The COC covers an area of 3,000 hectares spread over 3 coal blocks (CBS- 40-L-332, 333, & 334). Two blocks (332 & 334) are former blocks of PNOC Coal Corp. which were relinquished in the mid-1980’s. No exploration holes have been drilled in the area, though exploration and production in the block north of the area merits that the coal potential of the area be investigated further. Geologic mapping and a block boundary survey will be conducted over the three coal blocks. PNOC EC intends to drill approximately twenty-nine (29) holes in COC 184. Project Status as of June 2014: PNOC EC continues discussion with National Council for Indigenous Peoples (NCIP) for the conduct of Free and Prior Informed Consent (FPIC) activities.

Project Title : Zamboanga Sibugay Coal Exploration Coal Operating Contract (COC) No. 185 Project Location : Buug-Malangas, Zamboanga Sibugay Nature of Project : Coal Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) 100% JV Partners and Percent Equity : None Project Description: PNOC EC intends to conduct exploration activities in COC 185 including geologic mapping, block boundary survey and drilling of about twenty-two (22) drill holes to determine the extent, volume, behavior and quality of coal seams for possible coal mining operations in line with the DOE’s directive to explore and develop indigenous energy resources of the country. Geologic investigations will be conducted over an area of two thousand hectares (2,000 ha). Boundary survey for two thousand hectares (2,000 ha) and drilling of about 22 holes in the 2 blocks are scheduled for implementation upon obtaining the Certificate Pre-Condition. Project Status as of June 2014: PNOC EC continues discussion with National Council for Indigenous Peoples (NCIP) for the conduct of Free and Prior Informed Consent (FPIC) activities.

Project Title : Zamboanga Sibugay Coal Exploration Coal Operating Contract (COC) No. 186 Project Location : Imelda-Malangas, Zamboanga Sibugay Nature of Project : Coal Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) 100% JV Partners and Percent Equity : None Project Description: COC 186 is composed of five coal blocks and has a total area of slightly more than 5,000 hectares. It is situated directly south of Coal Operating Contract 41. It encompasses 24 barangays across the municipalities of Imelda and Malangas. The 15 barangays under Imelda includes (from northernmost) Gandiangan, Canaan, Pulawan (Mt. View), Israel (Balian Israel), Mali Little Baguio, La Victoria, San Jose, Poblacion (Santa Fe), Sta. Barbara, Upper Baluran, Lower Baluran, Balungisan Dumpoc, and Baluyan. Malangas has 9 barangays which are included in the coal blocks, namely, (from westernmost) Bontong, Mulom. Rebocon, Overland, Camanga, Basak-Bawang, Candiis, Lipacan and Tackling. Small portions of the southwestern part of Block 78 are within the boundaries of Payao and Alicia. PNOC EC intends to conduct exploration activities in COC 186 including geologic mapping, block boundary survey and drilling of at least forty-two (42) drillholes to determine the extent, volume, behavior and quality of coal seams for possible coal mining operations in line with the DOE’s directive to explore and develop indigenous energy resources of the country. Geologic investigations will be conducted over an area of five thousand hectares (5,000 ha). Boundary survey for five coal block and drilling of about 42 holes in the 5 blocks are scheduled for implementation upon obtaining the Certificate Pre-Condition. Project Status as of June 2014: PNOC EC continues discussion with National Council for Indigenous Peoples (NCIP) for the conduct of Free and Prior Informed Consent (FPIC) activities.

Project Title : ZAMBOANGA SIBUGAY Project Location : COC No. 41, ZamboangaSibugay

(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 (PNOCEC) 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 COC No. 41. It is located south of the present Integrated Little Baguio (ILB) coal mine. The Integrated Little Baguio Coal Mine that was previously operated by PNOC-EC’s Joint Venture partner, the Taiwan Overseas Mining Co. (Phils) Inc. (TOMC) is now being operated by PNOC-EC starting in March 2009. The coal mine is located at Brgy Little Baguio, Municipality of Imelda and BrgyPoblacion, Municipality of Diplahan and is producing about 100,000 tons annually. Aside from Lumbog and ILB, PNOC EC is also supervising small-scale coal mining operations within COC 41. Further, PNOC-EC is also exploring areas in Malongon, Lower Butong, and Lalat, which are also part of the COC 41. Project Status as of June 2014: PNOC EC continues exploration activities in Malongon, Sta. Barbara and Gotas North Limb areas. PNOC EC continues to supervise the small-scale mining permitees of the DOE within the block.

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 Description: The project involves evaluation of open areas and petroleum blocks offered by the Department of Energy (DOE) through bid rounds (Philippine Energy Contracting Round orPECR), and by Service Contractors through farm-in opportunities. PNOC EC will acquire these blocks if technically, economically and legally feasible. PNOC EC participated in the formal launching of the 4th Philippine Energy Contracting Round (PECR 4) on June 30, 2011. Project Status as of June 2014: PNOC EC continues to evaluate potential new ventures and exploration opportunities from various farm-out offers and petroleum bid rounds.

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 Description: 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 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, cargo handling, equipment rental, royalty, water supply and manpower services. Project Status as of June 2014: PNOC EC Energy Supply Base continues to serve the energy industry and commercial clients by providing pier, warehousing and other related services.

Project Title : Modular CNG Daughter Stations Project Location : Barangay Bolbok, City of Batangas, Province

Of Batangas and Barangay Tubigan, City of Biñan, Province of Laguna

Nature of Project : Refilling Station Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : Not applicable

Project Description: PNOC EC has been mandated by the DOE to take over the role and obligations of the Pilipinas Shell Petroleum Corporation (PSPC) under the Natural Gas Vehicle Program for Public Transport’s (NGVPPT) “Pilot Phase”. The company intends to develop, operate and maintain two daughter stations, modular in design and can be decommissioned and can be easily transferred to different locations. Project Status as of June 2014: PNOC EC continues procurement activities for the CNG infrastructure, CNG equipment package and tractor heads. PNOC EC is coordinating with the DOE on the implementation of the project.

Project Title : Overseas Petroleum Exploration Project Location : Petroleum areas overseas (with focus in Asia-

Pacific) Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : No existing project yet Project Description: The project involves evaluation of open areas and petroleum blocks overseas offered through bid rounds and farm-in opportunities. PNOC EC will acquire these blocks if technically, economically and legally feasible. In 2005, PNOC EC was mandated to expand its upstream petroleum investment overseas. The company has evaluated farm-in opportunities offered by international oil companies which included blocks in Southeast Asia, Africa, Middle East, Australia, South America and the USA. PNOC EC has also evaluated offered blocks in petroleum bid rounds in Colombia and Myanmar. No firm investments have materialized so far. PNOC EC is now prioritizing evaluation and eventual acquisition of producing assets with focus in the Asia Pacific. Project Status as of June 2014: PNOC EC continues to evaluate overseas opportunities for farm-in.

Project Title : Service Contract 37 - Cagayan Project Location : Cagayan Basin Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : PNOC Exploration Corporation 100% Project Description: Service Contract 37 originally covers an area of 2,200 sq.km. in the onshore Cagayan Basin in the provinces of Isabela and Quirino and the City of Santiago. It was awarded by the Department of Energy on July 18, 1990. It entered the 25-year production period in July 1997 when the San Antonio gas field was declared commercial by the DOE. After the required relinquishment, SC 37 now covers only 360 sq.km. to include the production and retention areas.

Project Status as of June 2014: PNOC EC continues preparation for the drilling of an exploration well which includes various procurement activities and preparation of various studies.

Project Title : Service Contract 47 – Offshore Mindoro Project Location : Offshore Mindoro Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : PNOC EC (Operator) 97% PetroEnergy Resource Corporation 2% Basic Energy Corporation 1% Project Description: SC 47 was awarded on January 10, 2005 by the Department of Energy (DOE) to PNOC EC and Petronas Carigali with the latter as operator. It originally covers an area of 14,667 sq. km. in Offshore Mindoro area but reduced to 10,480 sq.km. after satisfying the required relinquishment in 2009. The SC has a work commitment of four (4) exploration wells and minimum of 500 km 2D seismic data acquisition over three sub-phases for seven (7) years. 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 holding 2% and 1% participating interests, respectively. Project Status as of June 2014: PNOC EC continues dialogues with the DOE with regard to the way forward for the block.

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) - Operator 51% PNOC EC 28% Mitra Energy Limited (MITRA) 21%

Project Description: SC 57 is located in offshore northwest Palawan, west of Calamian islands covering an area of 7,120 square kilometers in offshore northwest Palawan and is situated around 50 kms northwest from the north-westernmost tip of Busuanga Island. 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%, respectively. The SC has a work commitment of three (3) exploration wells, 1,000 line km 2D data, reprocessing of 1,000 km vintage 2D data, and an option to either acquire seismic or drill one (1) well over seven (7) sub-phases in seven (7) years. Project Status as of June 2014: PNOC EC continues discussions with partners on the options for possible way forward, and continues to validate the prospect and lead inventory.

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 Exploration Corporation 50%

Nido Petroleum Ltd. (Operator) 50%

Project Description: Service Contract 58 is a deepwater acreage covering an area of 13,440 sq. km. west of SC 57 and SC 38 in the offshore northwest Palawan. It is flanked to the west by the Malampaya gas field and other oil and gas discoveries. It was awarded to PNOC EC by the Department of Energy (DOE) on January 12, 2006. The SC has a work commitment of three (3) exploration wells, 1,000 km and reprocessing of 1,000 km seismic data and an option of either acquiring another 1,000 km of in-fill seismic data or drilling of one (1) exploration well over five (5) sub-phases in seven (7) years. Project Status as of June 2014: PNOC EC and its partner continue Geological and Geophysical studies.

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 Exploration Corporation 25% BHP Billiton Petroleum Philippines 75% Project Description: Service Contract 59 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 June 2014: PNOC EC continues conduct of seismic data interpretation.

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%

Dragon Oil 40% Nido Petroleum 10%

Project Description: The SC 63 East Sabina was awarded on November 24, 2006. It has an area of around 10,560 sq.km. located offshore southwest of Palawan. 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 a 7-year work program divided into 5 sub-phases. It is now on its 2nd sub-phase which is an integration of the original sub-phase 2 and sub-phase 3. Project Status as of June 2014: PNOC EC and its partners drilled the Baragatan-1A exploration well in the block.

Project Title : Service Contract 75 – Northwest Palawan Project Location : Offshore NW Palawan Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : Philex Petroleum Corporation 50%

PNOC Exploration Corporation 35% PetroEnergy Resources Corporation 15%

Project Description: SC 75 was awarded by the DOE to PNOC EC on 27 December 2013. It covers an area of 6,160 sq km (616,000 hectares) in the offshore Northwest Palawan Basin with water depths at 1,000 to 2,600 m. It is located west of SC 58 and north of SC 63. The exploration period in SC 75 is for seven years divided into five sub-phases. The work program for the Sub-phase 1 (SP1) includes the acquisition of a 2,237 line-km 2D seismic data within the first half of 2014. Processing and interpretation of the acquired data will follow until the end of SP1 on December 27, 2015. Project Status as of June 2014: PNOC EC and its partners completed seismic data acquisition.

Project Title: 10 MW Bell Pirie Power Corp. Ocean Thermal Energy Conversion Project Project Location: Cabanga, Zambales Nature of Project: Ocean Thermal Energy Conversion Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Project Description: PNOC RC entered into a 3-year MOU with UK based Energy Island Bell Pirie Ltd (EIBPL) and Bell Pirie Power Corporation (BPPC), holder of Ocean Energy Service Contract covering 1,296 hectares of ocean site located in Cabanga, Zambales. Both companies develop all forms of energy available at sea, including wave, wind, sea currents and ocean thermal energy. Bell Pirie Power Corporation (BPPC) is the proponent of the project. PNOC RC is assisting BPPC in securing permits and clearances required to bring the project to commercial stage. This includes the Environmental Compliance Certificate (ECC), Local Government Unit (LGU) endorsement and agreements with the National Grid Corporation of the Philippines (NGCP). The project is expected to generate 10MW of power using Ocean Thermal Energy Conversion (OTEC) technology. Project Status as of June 2014: No activity. ERC hearing for Feed in Tariff (FiT) rules on OTEC technology is still on-going.

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 Description 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 a 5% mitigated free carry 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 June 2014: No development/s submitted by the project partner.

Project Title : 8.25 MWDulangan Hydropower Project Project Location : Baco, Oriental Mindoro Nature of Project : Hydropower Project Implementing Subsidiary : PNOC Renewables Corporation JV Partners and Percent Equity : PNOC RC Project Description: 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 8.25 MW. 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 June 2014:

• ECC Application filed in January 2014 : on-goingprocessing. • Draft Feasibility Study completed in May 27, 2014.

Project Title: Demo PicoHydropower Project Project Location: Bgy. Tibagan, Tarlac City Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Project Description: The Demo Pico Hydropower Project was undertaken to demonstrate the potential of irrigation canals to provide hydropower for Luzon. The Pico-Hydroelectric generator installed is capable of producing a maximum of 1kw at a flowrate of 130 liters per second and head of 1.5 meters. The project is located in Barangay Tibagan, Tarlac City, Tarlac. Project Status as of June 2014: Pilot Project completed and tested on January 21, 2014.

Project Title : 44 MWNalatang B Hydropower Project Project Location : Kabayan, Benguet Nature of Project : Hydropower Project Implementing Subsidiary : PNOC Renewables Corporation JV Partners and Percent Equity : PNOC RC Project Description: 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 44 MW and is estimated to generate about 209.89GWh 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 June 2014:

• NCIP permitting process on-going. Field Base Investigation completed on April 22, 2014.

• On-going coordination with the LGU to secure the Resolution of Support.

Project Title :4.3 MWOkoy Hydropower Project Project Location : Valencia, Negros Oriental Nature of Project : Hydropower Project Implementing Subsidiary : PNOC Renewables Corporation JV Partners and Percent Equity : PNOC RC Project Description: 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 4.3 MW and is estimated to generate about 20.34GWh 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 June 2014:

• NWRB water permit processing on-going. Application filed on March 21, 2014.

• NCIP Certificate of Non-Overlap (CNO) processing on-going. Provincial NCIP (Bayawan) endorsed issuance of CNO on February 6, 2014.

Project Title :13.8 MWPacuan-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 Project Description: 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 PacuanGuinobaan 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 13.7 MW and is estimated to generate about 68GWh 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 June 2014:

• Joint Venture bidding on-going. Bid opening scheduled on August 8, 2014 • Securing NCIP-CNO on-going. Payment fee for Field Based Investigation paid on

April 23, 2014.

Project Title: 20 MWPasil B Hydropower Project Project Location: Lubuagan, Kalinga Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Project Description: 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 94.6GWh 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 June 2014: NCIP permit processing on-going. Field Based Investigation (FBI) completed on February 28, 2014.

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 Project Description: 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 PasilC 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 June 2014:

• NCIP permit processing on-going. Field Based Investigation (FBI) completed on February 28, 2014.

Project Title: PRIS MCHydropower Project Project Location: Rizal, Nueva Ecija Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RCin collaboration with the National Irrigation Administration (NIA) Project Description: PNOC RC collaborated with the National Irrigation Administration (NIA) to harness hydropower from irrigation systems. A Memorandum of Agreement (MOA) was signed on November 7, 2012 for the development of six (6) initial sites. The PRIS MC Hydropower Project has an estimated capacity of 1000kw and is located in the City of Rizal, Nueva Ecija. Project Status as of June 2014:

• Engineering, Procurement, Construction and Commissioning (EPCC) contract award for the project was approved by the Board on June 2, 2014.

• EPCC Notice of Award was issued to the winning bidder, P.T.Cerna and Partners, on June 10, 2014.

• On-going processing of NCIP permit filed last March 27, 2014.

• On-going processing of NWRB permit filed last May 26, 2014.

Project Title : 24 MWSaltan B Hydropower Project Project Location : Balbalan, Kalinga Nature of Project : Hydropower Project Implementing Subsidiary : PNOC Renewables Corporation JV Partners and Percent Equity : PNOC RC Project Description: 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 113.3GWh 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 June 2014:

• Draft Feasibility Study (FS) preparation is on-going. Target completion is on August 2014.

• NCIP permitting is on-going. Field Based Investigation (FBI) completed on March 4, 2014.

Project Title: SDC Lateral C Muñoz Hydropower Project Project Location: Muños, Nueva Ecija Nature of Project: Hydropower Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RCin collaboration with the National Irrigation Administration (NIA) Project Description: PNOC RC collaborated with the National Irrigation Administration (NIA) to harness hydropower from irrigation systems. A Memorandum of Agreement (MOA) was signed on November 7, 2012 for the development of six (6) initial sites. The SDC Lateral C Hydropower Project has an estimated capacity of 500kw and is located in the City of Muños, Nueva Ecija. Project Status as of June 2014:

• Water permit application was filed on May 26, 2014. Processing is on-going. • NCIP permit application was filed on March 27, 2014. Processing is on-going. • Engineering, Procurement, Construction, and Commissioning (EPCC) project is for

budget supplemental and design approval.

Project Title : 4.6 MWSiaton Hydropower Project Project Location : Siaton, Negros Oriental Nature of Project : Hydropower Project Implementing Subsidiary : PNOC Renewables Corporation JV Partners and Percent Equity : PNOC RC Project Description: 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 SiatonHydropower 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 4.6 MW and is estimated to generate about 26.8GWh 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 June 2014:

• On-going processing of NCIP Certificate of Non-overlap (CNO). Received copy of recommendation of CNO issuance from NCIP Bayawan on Feb. 6, 2014.

• On-going processing of NWRB water permit. Application filed on March 20, 2014.

• Bidding for Joint Venture Partnership is on-going. Bid opening is scheduled on August 8, 2014.

Project Title: JobinSqm Solar PowerProject(100MW) Project Location: Sta. Rita, Subic Bay Freeport Zone (SBFZ) Nature of Project: Solar Power Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Project Description: The JobinSqm Subic Solar Power Project is a 100MW photovoltaic solar (PV) farm in Sta. Rita, Subic Bay Freeport Zone (SBFZ) together with the assistance ofHydrochina International. JobinSqm, Inc. (JSI) is the proponent of the project. PNOC RC is assisting JobinSqm, Inc. (JSI) in its service contract application with the Department of Energy (DOE). Project Status as of June 2014:

• JSI completed its initial 20 kw - feasibility study for the phase one of its 100 kw solar project development last January 2014.

• Environmental Compliance Certificate (ECC) processing is on-going. Initial Environmental Examination (IEE) checklist was submitted to DENR last January 2014.

Project Title: JobinSqm Wind PowerProject(50MW) Project Location: Sta. Rita, Subic Bay Freeport Zone (SBFZ) Nature of Project: Wind Power Project Implementing Subsidiary: PNOC Renewables Corporation JV Partners and Percent Equity: PNOC RC Project Description: The JobinSqm Subic Solar Power Project is a 50MW wind farm in Sta. Rita, Subic Bay Freeport Zone (SBFZ) together with the assistance ofHydrochina International. JobinSqm, Inc. (JSI) is the proponent of the project. PNOC RC is assisting JobinSqm, Inc. (JSI) in its service contract application with the Department of Energy (DOE) which is still pending due overlap issue. Project Status as of June 2014:

• JSI completed its 50 kw - feasibility study for its wind project last January 2014. • Environmental Compliance Certificate (ECC) processing is on-going. Initial

Environmental Examination (IEE) checklist was submitted to DENR last January 2014.

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 Description: Service Contract for the development of Maibarara Geothermal was 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 a 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. Project Status as of June 2014:

• Project was completed and commissioned on February 2014. • The total plant energy generation, year to date, is 47,228.60 MWe-Hr

Project Title : MainitSadanga 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 Description: PNOC RC has 5% mitigated free carry in the MainitSadangaGeothemal Project with Magma Energy Resources as the lead proponent. 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 through 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 June 2014:

• No development/s submitted by the project partner.

Project Title : Petrochemical Industrial Estate Project Project Location : PNOC-AFC Industrial Estate PIE), 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) Project Description: In 1993, then President Fidel V. Ramos directed the Philippine National Oil Company to spearhead the 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.

Status as of June 2014:

As of the first half of 2014, the status of activities related to the Energy City Project (ECP) includes the following:

• Resettling of 50% of informal settlers on PAFC property outside the fenced area in Mariveles, Bataan

Determination of the manner and scheme of compensation for the Integrated Social Forestry (ISF) holders is a major activity of the resettlement of the informal settlers. To facilitate this, the Department of Environment and Natural Resources (DENR) created an Evaluation Team composed of DENR, PAFC, ISF holders and barangay officials to conduct the inventory of trees and structure within the ISF area for compensation purposes.

• Signing of the final Locator Agreement for the Energy City Project with clear equity options for PAFC Atlantic Gulf and Pacific Inc. (AG&P) advised that it will no longer pursue the Energy City Project. However, a Special Project Vehicle (SPV) led by the original proponents of the project has signed up a Memorandum of Agreement (MOA) with PAFC to pursue the same.

• Final approval of DENR of updated Industrial Park Master Plan for issuance of amended Programmatic Environmental Compliance Certificate (PECC)

About 70% of DENR’s requirement has been complied by PAFC. This June, the consultancy work for Water Quality Modeling and Total Maximum Daily Load (TMDL) has been awarded. The Water Quality Modeling is needed for the recalculation of the TMDL. The TMDL, on the other hand, is a prerequisite for the amendment of the PECC.

Operation and Maintenance of Facilities

Continuous weekly monitoring and maintenance on the water distribution system facilities/equipment and lighting facilities were regularly conducted.

As of end of June, a total of 611,365 cubic meters of raw and fire water was provided to existing locators and for the rehabilitation of luminaires, 30 units were installed at the roadway and 3 units at the jetty.

During the period, one genset engine (75 kW Cummins) underwent preventive maintenance schedule (PMS) and minor repair. Likewise, conducted were painting activities at the water pipeline, deep wells and genset enclosures. Further, Lines #1 and #2 of the NPCA firewater service connection which was destroyed during a typhoon have been restored.

Procurement process is ongoing for the following:

Repair (rewinding) of 1 unit 75HP Booster Motor #3 @ R2 (WOR) 5 unit 200mm Swing Check Valve @ R1 & R2 5 unit 200mm Rising Gate Valve @ pt 12(2); R1 P/H (1) & R2 P/H (2) Replacement of 2 unit 20mm cone type basket strainer at R1 & R2 Mechanical & electrical tools for the various painting activities Supply, delivery and installation of 1-unit 300 MM flow water meter Supply and delivery of roadway lightings and accessories Supply and delivery of jetty lighting luminaires Supply and installation of 3-unit s/s intermediate discharge bowls for 12Vt

vertical turbine seawater

Rehabilitation of 668 kW Caterpillar Genset Motor/ Generator Replacement of 11 wooden poles to concrete poles including accessories Rehabilitation of 20 lighting systems of facilities and offices

Meanwhile, on the civil works, several projects were deferred to prioritize the following:

Jetty Rehabilitation: Remaining, Punchlists and Additional Works – for structural integrity and safety of the jetty

Construction of Temporary Fence for the 73-ha. PAFC property – this is necessary for the Energy City Project

Restoration of NPCA Firewater Line Connection – the line connection was damaged during a typhoon and the restoration is necessary to foil a fire accident

The deferred projects include:

Rehabilitation/Repainting of all Reservoirs and Pump Houses in the Park Rehabilitation of Cargo Pier, Concreting of Road, Slope Protection and

Drainage Renovation of Administration Building Conference Room Construction of 2 Units of Gensets Shed at #2 and #3

Health, Safety, Security and Environmental (HSSE) Program

• Health Management

The Diabetes Mellitus and Tuberculosis Awareness Seminar was conducted last May. Monthly inspection and replenishment of first aid kits and medicines at the work place are being continuously being undertaken.

• Safety Management

Activities conducted were:

Submission of Annual Drill Plan Monthly internal HSSE Meeting Quarterly submission of the Minutes of Internal HSSE Meeting to

DOLE Region 3 Drill, Simulation and Evacuation Emergency Response Procedures Weekly inspection of fire truck Monthly inspection of fire extinguishers Procurement activities for the calibration of multi-gas detector and the

purchase of safety equipment and supplies such as intrinsically safe camera and flashlights, wind cones and portable eye wash

The Site Management by Walking Around (SMBWA) was conducted twice during the period to audit the Park’s facilities if they are within safety standards. Otherwise, corrective measures were identified to rectify negative observations.

• Security Management

A total of eight (8) security-related trainings/seminars were conducted which include the following: Emergency Response Procedures - 2 Fire Equipment Orientation and Training - 1 Marksmanship - 1 Safe Gun Handling - 2 Bomb Search - 1 Customer Service - 1

For other trainings relevant to guards, a total of six (6) were undertaken:

Integrated Management Orientation - 2 Park’s Safety Rules and Regulations - 2 Waste Segregation and Handling of

Hazardous Waste - 2

Continuing security services were likewise provided within the Park’s premises and as part of security measures, meetings were held with the Philippine National Police (PNP) Director of Region 3, Chief of Police (COP) of Limay and COP of Mariveles.

• Environmental Monitoring and Management •

Monitoring of the following was conducted twice as targeted:

4 air sampling stations 3 effluent sampling stations 6 marine sampling stations 5 production wells 4 noise monitoring stations

Government reportorial requirements such as Compliance Monitoring Report (CMR), Compliance Monitoring and Validation report (CMVR) and Self Monitoring Report (SMR) were complied with. The monthly disposal of non-hazardous solid waste (residuals) was likewise conducted as targeted.

The Environment Guarantee Fund (EGF) and Environmental Monitoring Fund (EMF) are yet to be approved by the Multi-Partite Steering Committee.

On the Watershed Reforestation, a survey for the possible area for reforestation has already been conducted.

Harbor Management

During the period, a total of 30 berthings/unberthings at the Park’s jetty were supervised by PAFC. For the thruput usage a total of 76,330.23 metric tons (MT) was registered during the period.

Community Relations Program (CSR)

PAFC participated in coastal clean-up last March 7 and 28, 2014 and in the tree planting activity last June 27, 2014. It has likewise, provided in-kind donation to Barangay Batangas Dos and Immaculate Concepcion Parish.

During the period, the Community Relations Officer (CRO) attended the following meetings/teambuilding:

• CSR Parkwide Coordination Meeting • General Membership Meeting of the Bataan Coastal Care Foundation • Validation Workshop of the Bataan Coastal Care Foundation • PAFC Industrial Park Personnel Teambuilding

Meanwhile, proposal for the conduct of the skills training program to the immediate community has been submitted to management for approval.

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) Project Description: 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 last for 5 years to destroy/treat a total estimated PCB waste of 6,000 tons for the entire Philippines. Status as of June 2014:

The PAFC Board of Directors in its June meeting approved the following:

• Authority for the PAFC President/CEO to sign the new Memorandum of Agreement (MOA) between DENR and PAFC. This involve the continuity of PAFC as an operating agency beyond its committed budget for the project and the assurance of DENR’s policy support to the project to include exportation of high level PCBs as an option

• Hiring of POPs personnel for a period of six (6) months • Procurement of processing materials for processing of Low Level PCBs for two (2)

months • Procurement of export service provider for High Level PCBs inside the facility

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 Description: The PNOC-Development and Management Corporation (PDMC) entered into a joint venture agreement with Sta. Lucia Realty and Development, Inc. for the development of the 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 June 2014: From January to June 2014, 9 lots (2 commercial and 7 residential) were sold against the target of 11 lots. As of June 2014, a total of 492 lots were sold out of 539 lots for sale, resulting to a balance of 47 lots.

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 Description: 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 states that the latter can buy a portion of the property with a total contract price of 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 pays a marketing commission equivalent to ten (10) percent of total contract price.

Project Status as of June 2014: Eleven (11) units or three (3) units above the target of eight (8) units were sold from January to June 2014.

As of June 2014, a total of 32 units were sold out of the total inventory of 87 units, leaving a balance of 55.

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 Description: 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 June 2014: PDMC recognized an income of Php6.024M from Rosario LGU against the target of Php4.235M for YTD June 2014 for the collection of accounts pertaining to Socialized Housing Project. From June 2010 to June 2014, PDMC has collected Php43,934,724.00 from the total receivables of Php147,657,911.85, leaving a balance of Php103,723,187.85.

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 Description: 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 June 2014: • A Supplemental Memorandum of Agreement (SMOA) was signed by Presidents

Carlos Jose P. Gatmaitan of PNOC RC and Alfredo E. Pascual of UP and notarized on May 15, 2014. The SMOA allows PNOC RC to explore, negotiate and consequently recommend private sector investors in behalf of the UPLB project under a Public-Private Partnership (PPP) arrangement.

• The proposed Memorandum of Agreement (MOA) between PNOC RC and UP System for the proposed renewable energy projects within UP properties is now with UP Office of the Vice President for Legal Services (OVPLS) for review.