Department Circular No. 2003-05-006 specifies the minimum requirement with regard to working capital and financial strength of applicants.

1. Applicants may be any local/foreign individual or company applying by itself or in a group.

2. If an application involves more than one company, the following must be stated in the application:

a.      Name of operator and co-venturers  

b.      Participating interest of each co-venturer

The Operator must submit the application on behalf of the group.

The Operator must meet all technical, legal and financial requirements while each co-venturer must legally and financially qualify.

3. In this round, the DOE will award one Service Contract for each Predefined Contract Area (hereinafter called Contract Area) as given in the PCR-1 Contract Area map. The Contract Areas shall be annotated as on the said map (e.g. Contract Area 12118B)

An application covering more than one Contract Area must have separate work programs and budget for each Contract Area being applied for.

4. Applications must be in both paper and digital (CD-ROM in Microsoft Word, *.pdf, or a web-legible format) copies. Times New Roman 12 font and single line spacing is recommended. Figures shall be submitted in an appropriate format, no larger than A3 size. If necessary for legibility, figures and maps may be submitted at a larger scale as appendices.  

5. Both the original paper copy and the digital copy of the application must be sent by courier, registered mail or hand delivered to:  

Undersecretary Eduardo V. Mañalac

Department of Energy

Energy Center, Merritt Road

Fort Bonifacio, Taguig

Metro Manila

Philippines

Tel: (632) 940 2236

Fax: (632) 840 2138

Email: emanalac@doe.gov.ph  

All applications must be in at the time the contracting round closes on 2 March 2004 at 1700 hrs Philippine time.

The DOE Contract Negotiating Panel shall open the submitted documents on 3 March 2004 at 0900 hrs Philippine time to check for their completeness.  Applications with incomplete documents shall automatically be disqualified from the round.  

^Top

^Top

^Top

^Top

^Top

2. An acid test ratio of 1.5:1 and a debt/equity ratio of 3:1.

In case of consortium,  each member’s working capital shall be pro-rata based on its participating interest in the service contract.

 

In case of a newly organized subsidiary which is willing to engage in petroleum operations but its capital is not sufficient to meet the minimum requirement,  its parent company shall be required to submit its financial statements and provide support to a subsidiary through a parent guarantee.

 

In determining the compliance of the foregoing guidelines, the following must be submitted:

b.1    Latest audited financial statements of the corporation and annual reports for the last three (3) years

If latest annual report/audited financial statements are more than six (6) months old at the time of the filing, the applicant must submit an unaudited financial statement as of the date of filing or dated  within thirty (30) days to date of filing.

b.2    Duly filled out information sheet of the corporation

b.3    Resume / Profile of the corporation / incorporators / offices

The applicant must present an overview of the company's ownership structure. This must include a list of the most important share holders/shareholding groups together with their equity share. The applicant must state the company's place of registration, and main place of business, and provide a list of its board of directors with the nationality and domicile of each board member, together with information regarding the company's organization in the Philippines. 

b.4  Particulars of the kinds of financial resources available to the applicant including capital, credit facilities and guarantees so available

All data submitted should concern only the company or companies applying. If the applicant company is part of a larger group of companies, data should be submitted both for the petroleum-related part of the group, and for the group as a whole.

 The applicant should submit the following information:  

• Sources of funds such as capital, credit facilities and guarantees available to the applicant for purposes of the contract

• Statement of changes in working capital for the last two (2) years, if applicable

• Project cash flow statement for five years 

^Top

C.  Legal Documentation

c.1    Articles of Incorporation  

c.2    By-laws of the Corporation  

c.3    Certificate of Registration 

c.4    Certificate of Authority from the Board of Directors of applicant contractor

This authorizes a designated representative or representatives to whom all and every correspondence related to the round will be sent, to negotiate, and to sign the service contract on behalf of the company, among others.  The certification must be executed under oath by the Corporate Secretary and if executed abroad must be properly authenticated.    

D. Technical Documentation     

d.1   Particulars of the technical and industrial qualifications of the applicant and his employees’ operating experience  

The applicant must submit an overview of his expertise and experience in petroleum operations. The following areas of expertise should be described:

• Exploration Technology

• Development Technology

• Reservoir Technology

• Environmental Technology

• Research and development

• Safety and working environment

The applicant must demonstrate how his expertise could contribute to cost effective exploration and possible development of the Contract Area applied for.

A brief summary of the applicant’s experience from relevant projects within exploration, field development and operation must also be submitted. The role and level of responsibility in the actual project must be stated (operator or partner).                   

d.2   Particulars of the technical and industrial resources available to the applicant

Operational organization, including resources, expertise and experience 

E.   Other Documentation

e.1  Documentation of approach and standard in use by the applicant with regard to health, safety and environment (HSE) during petroleum operations.

The applicant must submit documentation of operational experience regarding safety, working environment and environment-related matters that are deemed to be relevant in connection with the Contract Area applied for.

The documentation must include guiding principles regarding safety and environment and management systems employed to ensure optimum safety and working environment conditions, together with those employed to ensure the protection of the environment.

e.2   Proposed commitment with regard to development of human resources in the Philippines and the use of local goods and services

The applicant must outline his proposed program to provide education and training of Filipino personnel on all levels including executive and management positions. The associated financial commitment to such training must be detailed.

The applicant must further document commitment and track record in using local goods and services during exploration, development and production.

General 

The applicant must endeavor to focus the application on relevant information. The application must only include data, analyses, calculations, interpretations and studies that are relevant for the Contract Area applied for. All studies that are employed in the evaluation of the Contract Area must be reviewed in a summary containing both conclusions and the arguments for the relevance of the study. 

In order to facilitate effective processing of the application, the chapter headings in the guide to the application must be used.

Applicants in the public contracting round are required to submit documentation in accordance with the Guidelines for Application. These include:

a.      Work Program / Economic Documentation

b.      Financial Documentation

c.      Legal Documentation

d.      Technical Documentation

The objective of the DOE is to achieve thorough resource evaluation, efficient exploration and maximum exploration success in the contract areas. 

To this end, DOE will select applicants that can demonstrate a good understanding of the possible resource potential of the contract area in question, and will carry out a work program that will efficiently map and test this potential. 

Preferred applicants will have experience from exploration and field development in similar areas and will have the necessary risk capital and financial capability to explore and develop the possible oil and gas resources.

The DOE will further put emphasis on the applicant’s documented practices on Health Safety and Environment (HSE) and proposed commitments with regard to development of human resources in the Philippines and the use of local goods and services (local content).

In evaluating the documentation submitted by individual applicants, the DOE Contracts Negotiating Panel will judge the applicants based on the criteria listed below. The weighing factors are indicative and the DOE reserves the right to reject any or all applications submitted.

^Top