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Republic of the Philippines
DEPARTMENT OF ENERGY

(Kagawaran ng Enerhiya) BAGONG PILIPINAS

DEPARTMENT CIRCULAR NO, _Dc <0 24 — 6&- 2025

GUIDELINES FOR THE AWARD OF MULTI-CLIENT SURVEY CONTRACTS
(MSC)

WHEREAS, Section 2, Article XIl of the 1987 Constitution provides that the
exploration, development, and utilization of natural resources shall be under the full
control and supervision of the State;

WHEREAS, Section 5(f) of Republic Act (RA) No. 7638, otherwise known as the
Department of Energy (DOE) Act of 1992, as amended by Section 37(g) of RA 9136,
otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001,
mandates the DOE to, among others, “establish and administer programs for the
exploration, transportation, marketing, distribution, utilization, conservation,
stockpiling, and storage of energy resources of all forms, whether conventional or non-
conventional’;

WHEREAS, Section 2 of Presidential Decree (PD) No. 87, as amended, otherwise
known as the Oi! Exploration and Development Act of 1972, declares it the policy of
the State to hasten the discovery and production of indigenous petroleum;

WHEREAS, on 18 August 2021, the DOE promulgated Department Circular (DC) No.
DC2021-08-0027 titled, 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 which provides for the process of selection, evaluation, award, and
implementation of contracts/agreements with service providers for the enhancement,
acquisition, processing, interpretation, and marketing of upstream petroleum data:

WHEREAS, since the adoption of DC No. DC2021-08-0027, the DOE has not received
any project proposal, hence, no new data was acquired or generated that can be made
available to prospective investors;

WHEREAS, exploration activities are data-driven and entail different sets of petroleum
data to identify prospective areas for oil and gas;

WHEREAS, the DOE is continuously adopting new mechanisms and strategies to
attract more interest in the acquisition and processing of new petroleum data in the
Philippines and effectively carry out its plans and programs as mandated under PD
87, as amended;

WHEREAS, the DOE desires to further simplify the process of selection and award of
contracts for the acquisition and processing of new petroleum data which entail no
cost to the government and compiement its policy on data declassification and free
access as provided in DC No. DC2023-10-0028 titled Guidelines on Petroleum Data
Declassification and Free Data Access,

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2900

Website: http://www.doe.gov.ph; E-mail: infocenter@doe.gov.ph

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DC on Guidelines for the Award of MSC
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NOW THEREFORE, for and in consideration of the foregoing premises, the following
policies, guidelines, and procedures are hereby adopted and promulgated:

Section 1. Policy on the Acquisition and Processing of New Petroleum Data

1.1. An open, transparent, simple, and efficient process of awarding contracts
for the acquisition and processing of new petroleum data will encourage the
involvement of stakeholders, enhance the discovery of prospective areas,
and advance the exploration, development, and utilization of petroleum
resources in the country.

1.2. All areas are considered open for the acquisition of new petroleum data.
Any juridical person found to be legally, technically, and financially qualified
under this Circular may conduct such activities to acquire and process new
petroleum data over its area of interest.

1.3. The DOE owns all petroleum data acquired and/or processed pursuant to
this Circular, subject to the exclusivity period stated in the MSC. Upon the
expiration of such exclusivity period, ali data and/or processed shall be
declassified pursuant to DC No. DC2023-10-0028.

Section 2. Qualifications of Multi-Client Survey Contractors

Any juridical person organized for the purpose of acquiring and processing petroleum
data may submit a proposal under this Circular.

Section 3. Letter of Intent and Payment of Processing Fee

3.1. The proponent shall submit a Letter of Intent (LOI) addressed to the
Supervising Undersecretary of the Energy Resource Development Bureau
(ERDB).

3.2. The ERDB - Petroleum Resource Development Division (ERDB-PRDD)
shall prepare a billing statement for the issuance of an Order of Payment
(OP) in the amount of Fifty Thousand Pesos (PhP50,000.00), representing
a non-refundable processing fee. Such OP shall be sent to the proponent’s
email address indicated in its LO! and must be paid within ten (10) calendar
days from receipt thereof. Documentary stamp taxes, wire/cable fees, and
other charges shail be for the account of the proponent.

3.3. Payment may be made in cash, manager's cheque, direct over-the-counter
bank deposit, or via wire/bank transfer payable to the “Department of
Energy” with the following bank details:

Energy Center, BGC, Taguig Ci

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DC on Guidelines for the Award of MSC

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Section 4. Submission and Evaluation of Documentary Requirements

4.1.

After payment of the processing fee, the proponent shall submit the
following documentary requirements, both in digital and hard copies, to the
Records Management Unit of the DOE (DOE-RMU):

1.

3.

1.

1.

. Legal Documentation

Certified copy of the Certificate of Registration or Incorporation and
Articles of Incorporation (AOI) issued by the Securities and Exchange
Commission (SEC).

. Proof of authority from the proponent’s governing board authorizing or

designating a representative/s to perform all acts in relation to their
proposal, negotiate the terms and conditions, and sign the contract or
other relevant documents.

Copy of the Official Receipt as proof of payment of the processing fee.

. Technical Documentation

Project Summary with a general description of the proposed data
acquisition and processing activity including a technical overview, the
latest technology to be used and data improvement output, information
on the line or square kilometers of data to be acquired, and marketing
strategy, among others.

Map and Technical Description of the proposed coverage area in World
Geodetic System (WGS) ’84 geographic coordinates with the proposed
coverage of new petroleum data acquisition and processing.

. Particulars of the technical and industrial qualifications, eligibility, and

work-related experiences of the proponent and its employees.

. Financial Documentation

Certified true copies of the Audited Financial Statements for the last two
(2) years from the date of the proposal and the latest unaudited Financial
Statement, both duly signed by the President and/or Chief Financial
Officer of the proponent. The Cash Balance indicated in the unaudited
Financial Statement must be substantiated by a Bank Certification.

. The Financial Statements, both audited and unaudited, must

demonstrate the proponent’s financial capability to support the proposed
data acquisition and processing activities as indicated in the Project
Summary.

. The DOE shall evaluate the submissions and may require additional

documents to complete or rectify the submitted documents. Failure of
the proponent to submit the required additional documents within the
prescribed period in the notice shall result in the termination of the
evaluation.
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DC on Guidelines for the Award of MSC

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4. After evaluation, the DOE shall issue a notice qualifying or disqualifying
the proponent. If qualified, the proponent shall be directed to submit its
proposed terms for the MSC, subject to the minimum terms and
conditions under Section 5 of the DC.

Should the proponent fail to submit its proposed terms for the contract
within the period prescribed in the notice, the processing of the proposal
shail immediately be terminated.

Section 5. Minimum Terms and Conditions of the MSC

5.1.

5.2.

5.3.

5.4.

The period to exclusively market the data shall be for ten (10) years, which
shall commence twelve (12) months after the demobilization of acquisition
equipment from the survey area. The period to exclusively market the data
may be extended upon mutual agreement of the parties.

The acquisition and processing of new petroleum data shall be for the sole
account of the MSC and shall not entail any costs to the DOE.

The MSC shall pay the DOE an amount equivalent to five percent (5%) of
the gross revenue for every sale of the data licenses and remit the same to
the DOE within thirty (30) days from the completion of each sale.

All petroleum data acquired and processed shall be submitted to the DOE
within six (6) months from completion of the processing thereof, provided,
that such data shall remain classified for the duration of the exclusive
marketing period.

Section 6. Negotiation and Award of MSC

6.1.

6.2

Upon receipt of the proponent’s terms and conditions, the DOE and the
proponent shall negotiate the final terms and conditions of the MSC.
Negotiations shall automatically terminate within sixty (60) calendar days
from the commencement of the negotiation unless the parties agree, for
reasonable grounds, to extend the period.

Once the parties agree on all the terms and conditions, the award of a MSC
in favor of the proponent shall be endorsed for the approval of the Secretary.

Section 7. Separability Clause

If, for any reason, any section or provision of this DC is declared unconstitutional or
invalid, such parts not affected thereby shall remain in full force and effect.

Section 8. Repealing Clause

DC No. DC2021-08-0027 and all other DOE issuances inconsistent with the provisions
of this DC are hereby repealed or amended accordingly.
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Section 9. Effectivity

This DC shall take effect immediately following its publication in two (2) newspapers
of general circulation. A copy of this DC shall be filed with the University of the
Philippines Law Center — Office of the National Administrative Register (UPLC-
ONAR).

Issued on AUG 14 2024 at the DOE, Energy Center, Rizal Drive corner
34th Street, Bonifacio Global City, Taguig City.

RAPHAEL P.M. LOTILLA
Secretary