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ANNEXA

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Republic of the Philippines
DEPARTMENT OF ENERGY
(Kagawaran ug Enerhiya)

DEPARTMENT CIRCULAR NO. DE2021 -08-O07 Ty

PRESCRIBING THE GUIDELINES AND PROCEDURES FOR THE APPROVAL
AND AWARD OF PROJECTS PROPOSED BY SERVICE PROVIDERS FOR THE
ENHANCEMENT, ACQUISITION, PROCESSING, INTERPRETATION AND
MARKETING OF UPSTREAM PETROLEUM DATA IN THE PHILIPPINES

WHEREAS, Republic Act No. 7638, as amended, otherwise known as “Tho
Department of Energy Act of 1992", mandates the DOE to prepare, integrate,
coordinate, supervise and contro! all plans, programs, projects and activities of the
Govemment retative to energy exploration, development, utilization, distribution, and
conservation;

; WHEREAS, Section 4 of Presidential Decree No. 87, as amended, otherwise known

as the "Oi Exploration and Development Act of 1972*, mandates the Phillppine
Government (the "Govemment’) to directly explore for and produce indigenous
petroleum:

WHEREAS, the DOE is continuously adopting new mechanisms and strategies to
effectively carry out its plans and programs as mandated under PD 87, as amended;

WHEREAS, the DOE intends to ensure a judicious, expeditious, transparent,
competitive and efficient process in the selection, evaluation, award, and
implementation of project proposals for petroleum data enhancement, acquisition,
processing, interpretation and marketing, which arrangements will entail no cost to the
government;

NOW, THEREFORE, In consideration of the foregoing premises, the following
guidelines, policies and procedures in the selection, evaluation, award and
implementation of contracts with servica providers for petroleum data enhancement,
acquisition, processing, Interpretation and marketing are hereby adopted and
promulgated for compliance by all concerned:

Section 1. Scope. This Circular shall prescribe the process of selection, avaluation,
award and implementation of contracts/agreements with service providers for
petroleum data enhancement, acquisition, processing, interpretation and marketing
and, for this purpose, the reconstitution of the Review and Evaluation Committee
{REC).

Section 2. Policy In the Acceptance of Project Proposals, Selection of Service
Provider, Approval and Award of Service Provider Contracts.

2.1 In the acceptance of project proposals, the DOE shall take significant
consideration of the fatest applicable technology in data enhancement,
acquisition, processing and Interpretation.

2.2 Prior to the award of contracts under this Circular, all prospective service
providers/applicants, including the project proponent, shall be subjected to
legal, tachnical and financial evaluation, which shall be conducted In a
transparent, competitive and expeditious manner and only to ensure that

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prospective service provider possesses sufficient tegal, technical and
financial capability.

2.3 After due evaluation, the contract shall be awarded to the highest ranked
applicant, in accordance with the critesia approved by the REC.

Section 3. Organization of the Review and Evaluation Committee (REC). In order
to carry out the responsibilities set forth In this Circufar, the REC shall be composed
of the following officials:

Chairperson - Undersecretary-incharge of the Energy Resource
Development Bureau (ERDB)

Vice Chairman - Assistant Secretary in-charge of ERDB

Members Director of thea ERDB
Director of the Financial Services (FS)
Oirector of the Legal Services (LS)
Director of the tnformation Technology and Management
Services (TMS)

Section 4. REC Technical Working Group (TWG) and Secretariat.

4.1. The REC TWG and Secretariat is hereby constituted to assist the REC In
the discharge of tts functions and responsibilities Including, but not Emited
to coordination, edministration, supervision, evatuation and regulation of
project proposals. The REC-TWG shail be composed of the following:

Head Assistant Director of the ERDB

Members Chief, Petroteum Resources Development Division (PROD)
Chief, Conventional Enengy Resources Compilance Division
(CERCD)
Chief, Upstream Conventional Energy Legal Services
Division (UCELSD)
Chiat, information Services Division (ISD)
Chief, Information and Data Management Division (IOMD)

Secrotarlat Supervising Science Research Specialist and Staff of the
PRDO’s Geology and Geophysics Section and Information
and Data Management Division

Section & Responsibilities of the REC

5.1 Recelve, evaluate and sccept project proposals for petroleum date
enhancement, acquisition, processing, Interpretation and marketing;

5.2 Review ond evaluate the legal, technical, and financial capabilities of
prospective service providers;

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5.3 Recommend to the Secretary the award and selection In favor of the
highest-ranked applicant;

5.4 Address any questions and inquiries that may be ralsed by the Secretary in
connection with the highest-ranked applicant,

5.5 Institute and implement a system of coordination, administration,
supervision and regulation during contract implementation.

§.6 Perform other functions that are necessary to carry out its responsibilities
and objectives.

Section 6. Responsibilities of the REC-TWG and Secretariat
6.1 Prepare and submit the agenda during the REC meeting;
6.2 Document the proceedings of the REC meetings;
6.3 Prepare the highlights of consensus points of the REC after every meeting;

6.4 Handle ail administrative requirements relative to the conduct of the
meeting and posting of proposals in the DOE website;

8.5 Conduct Initial technical, financial and fega! evaluation and prepare the
necessary documentation on the results of such evaluation and necessary
action documents to be endorsed to the REC and/or to the Secretary for
approval;

6.6 Oetermine the necessary geophysical activity and/or applicable technical
data enhancement on the identified areas of interest, as reference in the
review and evatuation of project proposals.

Section 7. Qualifications of a Service Provider. A service provider may be any
localfcreign individual company or group of companies organized or authorized for
the purpose of providing services related to upstream petroleum data enhancement,
sequisition, processing, interpretation and marketing and, after due evaluation, was
found legally, technically and financially qualified by the DOE

Soction 8 Process for the Submission, Evaluation, and Acceptance of Project
Proposals and the Evaluation, Selectlon and Award of Service Provider
Contracts. The process for the submission, evaluation and scceptance of project
proposals and the evaluation, selection and award of contract shal) be in accordance
with Annex A’ of this Circular entitled “Guidelines in the Selection of Service Providers
for the Philippine Upstream Petroteum Data Enhancement, Acquisition, Processing,
interpretation and Marketing.”

Section 9 Requirements for Prospective Service Providers. Al)
eppileants/prospective service providers shall submit the documents listed under
Annex “B” of this Circular entitled “Service Provider Checitist for Submissions of

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Proposals,” which shail be the basis In the evaluation and determination of their fegal,
technical and financial qualifications.

Section 10. Motions for Reconsideration and Appeais. The REC, for sufficient and
valid cause, may et any given time reject any or ail submitted proposal/s or
application’s. The decision of the REC shall be immediately executory unless a motion
fer reconsideration is filed with the REC within fifteen (15) days from receipt of the
decision rejecting the proposal.

A party desiring to eppeal the decision of the REC shall address their concern to the
Secretary within fifteen (15) days from receipt of the denial of the motion for
reconsideration.

Section 11, Olsquatification. All entities with cancelledferminated project and with
outstanding work and financial obligations with the DOE, are disqualified to participate.

Section 12, Data Ownership

12.1 The DOE wholly end exclusively owns the data generated by the Service
Provider under the contracts entered under this Circular, except for date
generated with proprietary rights er as may have been egreed under the
Service Provider's contract.

12.2 Within six (6) months from the completion of acquisition, processing,
reprocessing or any form of enhancement of the data, the Service Provider
shail submit all deliverables free of charge to the DOE for their internal use
and retention.

12.3 The Service Provider, if so agreed under the contract, shall be afforded a
reasonable period to exctusively market and sel the data, after which the
* game Ghall be exclusively owned by the DOE.

Section 13. Separabllity Clause. If for any reason, any section or provision of this
Clreular and Its Annexes Is declared unconstitutional or invalid, such parts not affected
shall remain in full force end effect.

Section 14, Repealing Clause. Al! prior issuances of the DOE that are Inconsistent
with the provisions of this Circular are hereby repeated or amended accordingly.

Section 16, Effectivity, This Circular hall take Into effect fifteen (15) calendar days
following its publication in two (2) newepspers of general circulation and shall remain
In effect until otherwise revoked.

Iseved this 2021 in Bonifacio Global City, Taguig City, Metro Manila.

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