Per PD 87

Onshore 50,000 to 750,000 hectares

Offshore 80,000 to 1,500,000 hectares

-7 years for exploration; can be extended up to 3 years;

-25 years for production;  can be extended for another 15 years; provided that the total number of years of the contract shall not exceed 50 years

Minimum of 1.5% and maximum of 7.5% of gross proceeds where the foreign service contractor allows at least 15% participation by Filipino companies

-70% maximum of gross proceeds or actual expenses per calendar year; unrecovered costs for the current calendar year to be carried over in the succeeding calendar year

-100 % recoverable costs for non-capital expenditures;

-capital expenditures depreciated over 5 to 10 years;

Production

Sharing

Government = 60% of net proceeds

Contractor = 40% of net proceeds

30% of grossed-up contractor share on net proceeds which is paid out of government share

Minimum of USD 50,000

Minimum of USD 60,000* 

(75% for the DEPARTMENT and 25% for the scholarship and institutional assistance to universities/ colleges identified by the DEPARTMENT)

In succeeding years:

Exploration phase –  USD 5,000 for scholarship per year (cumulative)

Production phase – to be negotiated based on production rate (minimum of USD 10,000 per year cumulative)

Minimum of: *

USD 300,000 at start of production;

USD 500,000 at 25,000 BOPD;

USD 1 MM at 50,000 BOPD; and

USD 2 MM at 75,000 BOPD

Minimum of: *

USD 300,000 at start of production;

USD 500,000 at 250 MMCFGD;

USD 1 MM at 500 MMCFGD; and

USD 2 MM at 750 MMCFGD

Minimum of USD 20,000 per year during exploration period (cumulative);

Minimum of USD 50,000 per year during production year (cumulative, to be negotiated based on production rate)