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Project Title COAL TRADING AND INTEGRATED SERVICES

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Project Title COAL TRADING AND INTEGRATED SERVICES Powered By Docstoc
					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                    2%
                 Corporation
                 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          Number          Par        Amount             Amount        % of
 Stockholder       of Shares       Value     Subscribed           Paid-up     ownership
                                 (In PhP)      (in PhP)           (in PhP)
PetroGreen          1,828,125     100.00    182,812,250.00      45,703,125.00   65%
Energy Corp.

PNOC                  281,250     100.00      28,125,000.00      7,031,250.00     10%
Renewables
Corp.

Trans-Asia Oil        703,125     100.00      70,312,500.00     17,578,125.00     25%
and      Energy
Development
Corp.

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.

				
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