Country Profile
Petroleum Geology & Potential
Exploration/Development History
Present Status
Offered Acreage
Contract Terms
Highlights of Fiscal Terms for PCR-1
Model Contract
Governing Laws and Issuances
Bidding Procedure
Other Information
Contact Us
  Highlights of Fiscal Terms for PCR-1

Contract Area

2,000 sq km to 8,000 sq km

Contract Term

7 years exploration period + 3 years exploration period extension + 25 years production period + 15 years production period extension

Signature Bonus

USD 50,000 to USD 150,000

Production Bonuses - Oil 

USD 300,000 at start of production; USD 500,000 at 25,000 BOPD; USD 1M at 50,000 BOPD; and USD 2 Million at 75,000 BOPD

Production Bonuses - Gas

$300,000 at start of production, USD 500,000 at 130 MMBFOEPD; USD 1M at 260 MMBFOEPD; and USD 2M at 400 MMBFOEPD.

Royalties - Oil 




Income Tax

Tax rate: 32% - paid out of Government share

Cost Oil

Cost oil Limit: 70% of gross income. Capital expenditures depreciated over 5 to 10 years.

Cost Gas

Same as oil.

Profit Oil

Profit oil share to government: 60%. There is Filipino Participation Allowance of up to 7.5% of gross proceeds where the investor allows at least a 15% participation by Filipino companies.

Profit Gas

Same as oil

State Participation


Training Allowance

USD 20,000 per year during exploration period (Cumulative); USD 50,000 per year during production period (Cumulative)

  Model Contract
  Governing Laws and Issuances
  Oil Exploration and Development Act of 1972

The Act, conferred by Presidential Decree 87, provides the legal basis for the exploration and development of indigenous petroleum resources authorizing the grant of service contracts entered into thru public bidding, or through negotiations.

  Presidential Decree 1857

This law amends certain sections of PD 87, offering improved fiscal and contractual terms to service contractors with special reference to deepwater oil exploration.

  DOE Circular No. 2003-05-005

This Circular establishes the procedures for the Philippine contracting round in petroleum prospective areas.

  DOE Circular No. 2003-05-006

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

  Executive Order No. 66

This order designates the Department of Energy as the lead agency in developing the natural gas industry.

  DOE Circular No. 2002-08-005

The circular sets the interim rules and regulations governing the transmission, distribution and supply of natural gas.  

  Other Issuances
  Philippine Environmental Policy Act (Presidential Decree 1151)

Enacted in 1977, this act requires the government and the private sector to undertake environmental impact assessments of their project activities which may significantly affect the quality of the environment.  

  Philippine Environmental Code (P.D. 1152)

The Code provides a detailed prescriptions on the management of air quality, water quality, land use, natural resources and waste.  

  Environmental Impact Statement System (P.D. 1586)

The decree which took effect in 1978 provides details on Environmental Impact Statement (EIS) System.  

  National Integrated Protected Areas System Act of 1992

The act, by virtue of Republic Act No. 7586, provides for the establishment and management of national integrated protected areas system, defining its scope and coverage. Section 14 of the NIPAS Act specifies the survey of energy resources in protected areas solely for data gathering. Any exploitation and utilization of energy resources found within NIPAS areas shall be allowed only thru passage of law by Congress. 

  The Indigenous People's Rights Act of 1997 (Republic Act 8371)

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

  Memorandum Agreement
  The Indigenous People's Rights Act of 1997 (Republic Act 8371)

"The boundaries and names shown and the designations used in this website on CCOP EPF
do not imply official endorsement or acceptance by CCOP."

Copyright © Coordinating Committee for Geoscience Programmes in East and Southeast Asia (CCOP)
24th Floor, Suite 244-5, Thai CC Tower, 889 Sathorn Tai Road, Sathorn, Bangkok 10120, THAILAND
Tel: (662) 672-3080-1 Fax: (662) 673-3082 E-mail:
Last Update: 8 August 2002