Project Title : PNOC BATANGAS LIQUEFIED NATURAL GAS (LNG) HUB PROJECT

Project Location : Mabini, Batangas (Tentative) Nature of Project : Natural Gas Power Plant and Receiving Terminal Implementing Agency : PNOC JV Partners and Percent Equity : None at the moment

Project Description: This Project is aimed at establishing a complete value chain LNG facility with an initial 5MTPA throughput. The facility’s components shall cover LNG supply, storage units, re-gasification plants, distribution facilities and a modular 200 MW Power Plant to serve as an “army reserve.” Being strategically close to the location of the country’s major gas-fired power plant developments, PNOC is considering various locations in Batangas as potential project sites. The facility is envisioned to supply the natural gas requirement of the five (5) existing natural gas power plants in Batangas when Malampaya shuts down as well as the requirement of the PEZA-registered industries, CNG for the transportation sector, household and small power utilities groups (SPUG) requirements and most importantly the poorest of the poor through network pipelines and small LNG carriers/trucks. Moreover, the Philippines being strategically located in the Asia Pacific Region, close to major LNG users such as Japan, China, Taiwan, etc. could also be the potential gas source of these countries.

With a complete LNG facility, it is aimed to contribute in achieving energy security while

promoting low carbon future by utilizing clean energy. This will likewise encourage investment in

related infrastructure and facilities to further develop the natural gas industry in the country.

And hopefully in the future, the country may develop to become an international hub for LNG

trading given its strategic location in Asia and the world.

Project Status as of December 31, 2017: PNOC received eight (8) unsolicited proposals from various local and international companies. The PNOC LNG Technical Working Group (LNG TWG) was created and was tasked to evaluate these proposals based on the 2013 Revised NEDA JV Guidelines or BOT Law.

Project Title : MONETIZATION OF PNOC BANKED GAS Project Location : Nature of Project : Sale of Remaining Banked Gas Volume Implementing Agency : PNOC JV Partners and Percent Equity : None at the moment

Project Description: Banked gas is the accumulated unused gas by the Ilijan Power Plant (owned by Napocor/PSALM), which has an existing Gas Sale and Purchase Agreement (GSPA) with the SC38 consortium that is subjected to a take-or-pay (TOP) provision. Under TOP, a fixed quantity of gas is being paid for by the power plant every year, whether they use the gas or not. The Department of Energy (DOE) is subrogated to all the rights and entitlements of the banked gas. In September 2009, PNOC purchased from the DOE all the rights, benefits and entitlements of the banked gas worth 108.6 Petajoules. Currently, the total volume of the PNOC banked gas is equivalent to 97.67 PJ since it was able to sell 4.61 PJ to PSALM in 2013 and another portion, equivalent to 6.324 PJ was sold to Pilipinas Shell Corporation (PSPC) in 2014. PNOC is currently selling the remaining volume of banked gas. Project Status as of December 31, 2017: The PNOC Banked Gas Committee is studying the most viable option for monetizing the remaining banked gas volume of PNOC.

Project Title : Service Contract 37 - Cagayan Project Location : Cagayan Basin Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : PNOC Exploration Corporation 100% Project Description: Service Contract 37 originally covers an area of 2,200 sq.km. in the onshore Cagayan Basin in the provinces of Isabela and Quirino and the City of Santiago. It was awarded by the Department of Energy (DOE) on July 18, 1990. It entered the 25-year production period in July 1997 when the San Antonio gas field was declared commercial by the DOE. The 3MW San Antonio Gas Power Plant was in operation until 2008. At present, SC 37 covers only 360 sq. km. to include the production and retention areas.

Project Status as of December 2017: PNOC EC continued monitoring of the pressure build-up of the Mangosteen-1 well and conducted sampling activities for gas and fluid. The Company also continued preparatory activities for geological & geophysical surveys to mature other drilling targets.

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) - Operator 51% PNOC EC 28% Mitra Energy Limited (MITRA) 21%

(pending approval of the transfer of participating

interests to CNOOC & Mitra Energy Limited) Project Description: SC 57 is located in offshore northwest Palawan, west of Calamian islands covering an area of 7,120 square kilometers in offshore northwest Palawan and is situated around 50 kms northwest from the north-westernmost tip of Busuanga Island. 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%, respectively. The SC has a work commitment of three (3) exploration wells, 1,000 line km 2D data, reprocessing of 1,000 km vintage 2D data, and an option to either acquire seismic or drill one (1) well over seven (7) sub-phases in seven (7) years. Project Status as of December 2017: PNOC EC continues discussions with the DOE and Office of the President (OP) to resolve issues on PNOC EC’s request for the approval of the transfer of its participating interests to CNOOC and Mitra Energy.

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 Exploration Corporation 50%

Nido Petroleum Ltd. (Operator) 50%

Project Description: Service Contract 58 is a deepwater acreage covering an area of 13,440 sq.km. west of SC 57 and SC 38 in the offshore northwest Palawan. It is flanked to the west by the Malampaya gas field and other oil and gas discoveries. It was awarded to PNOC EC by the Department of Energy (DOE) on January 12, 2006. The SC has a work commitment of three (3) exploration wells, acquisition and reprocessing of 1,000 km seismic data and an option of either acquiring another 1,000 km of in-fill seismic data or drilling of one (1) exploration well over five (5) sub-phases in seven (7) years. Project Status as of December 2017: DOE granted Nido Petroleum’s request for the suspension of the performance of work commitments and obligations on the basis of Force Majeure until DOE notifies Nido Petroleum to commence drilling in accordance to the final resolution on the arbitration proceedings between the Philippines and China.

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 Exploration Corporation 100% Project Description: Service Contract 59 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.

BHP Billiton farmed-in into SC 59 in 2009 acquiring 75% working interest and operatorship but later withdrew in 2013. Project Status as of December 2017: PNOC EC continues the interpretation of the SC 59 multi-client 2D (MC2D) seismic data

to understand prospectivity of the area.

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 50%

Nido Petroleum (Operator) 50% Project Description: The Service Contract 63 East Sabina was awarded on November 24, 2006. It has an area of around 10,560 sq.km. located offshore southwest Palawan. It was formerly the Area-1, one of the four blocks offered by the Department of Energy (DOE) under the Philippine Energy Contracting Round (PECR) in 2005 which was jointly applied for by PNOC EC and Nido Petroleum. The SC is under a 7-year work program divided into 5 sub-phases. It is now on its 2nd sub-phase which is an integration of the original sub-phase 2 and sub-phase 3. Project Status as of December 2017: PNOC EC reviewed the regional geology of southwest Palawan which includes SC 63. On December 19, 2017, the DOE approved the transfer of participating interest from Dragon Oil (withdrawing party) to PNOC EC and Nido Petroleum (remaining parties), and the transfer of operatorship to Nido Petroleum.

Project Title: SC 74 – Linapacan Project Location: Northwest Palawan Basin Nature of Project: Petroleum Exploration Implementing Subsidiary: PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity: PXP Energy Corporation (Operator) – 70% (formerly Philex Petroleum) Philodrill Corporation – 25% PNOC EC – 5% Project Description: Service Contract 74 was awarded by the DOE to joint bidders Pitkin Petroleum Limited (Pitkin) and Philodrill Corporation on 13 August 2013 during the PECR 4. The Service Contract covers an area of 429,184 ha. in the offshore Northwest Palawan Basin with water depths ranging from less than 10 m. to about 200 m. and about 278 km. southwest of Manila and approximately 150 km. northwest of Puerto Princesa, Palawan. Philodrill originally holds 30% participating interest, but transferred 5% interest to PNOC EC on November 5, 2015. On the other hand, the DOE approved Pitkin Petroleum’s transfer of 70% of its interest and operatorship to PXP Energy Corporation (formerly Philex Petroleum) on April 25, 2016. Project Status as of December 2017: PNOC EC continued gravity and magnetic interpretation with expected completion in the first quarter of 2018.

Project Title : Service Contract 75 – Northwest Palawan Project Location : Offshore NW Palawan Nature of Project : Petroleum Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners and Percent Equity : PXP Energy Corporation 50% (formerly Philex Petroleum)

PNOC Exploration Corporation 35% PetroEnergy Resources Corporation 15%

Project Description: Service Contract 75 was awarded by the Department of Energy (DOE) to PNOC EC on 27 December 2013. It covers an area of 6,160 sq.km. in the offshore Northwest Palawan Basin with water depths ranging from 1,000 to 2,600 m. It is located west of SC 58 and north of SC 63. Project Status as of December 2017:

On September 9, 2015, the DOE granted PXP Energy Corporation its request for Force Majeure to SC 75 work commitments for Sub-Phase 2 effective December 27, 2015 due to the issues between China and the Philippines in the West Philippine Sea.

Project Title : COC 41 - ZAMBOANGA SIBUGAY Project Location : COC 41, ZamboangaSibugay

(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: PNOC EC took over the operations of the Integrated Little Baguio (ILB) Coal Mine from its then Joint Venture partner, the Taiwan Overseas Mining Co. (Phils) Inc. (TOMC) starting March 2009. The coal mine is located at Brgy. Little Baguio, Municipality of Imelda and Brgy. Poblacion, Municipality of Diplahan. In 2013, due to unfavorable coal prices, all development and production activities has been suspended. Despite this, PNOC EC continued with active exploration to further determine the coal potential of COC 41, including the areas of Sta. Barbara, Malongon, Lower Butong, and Gotas North Limb. PNOC EC is also supervising small-scale coal mining operations within COC 41. Project Status as of December 2017: PNOC EC continues coordination with the DOE and NEDA on the joint venture process for the Project. The Company also continues with conduct of various CSR activities and conducted coal asset valuation, through its contractor, to determine the value of COC 41.

Project Title : Isabela Coal Mine Development Project Coal Operating Contract (COC) No. 122 Project Location : City of Cauayan and Municipalities of Benito Soliven

and Naguillan, Province of Isabela Nature of Project : Coal Mine Development Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) 100% Project Description: COC 122 is located some 300 kilometers north of Manila and includes portions of the City of Cauayan and the municipalities of Naguilian and Benito Soliven, all within the province of Isabela, in the Cagayan Valley region. The Isabela province is located at the northeastern part of Luzon Island. The project is a pioneering undertaking being developed by PNOC EC. It seeks to utilize low rank indigenous coal to fuel an electric power plant employing “progressive mining and rehabilitation method” and “clean coal” technology for the mine and power plant, respectively. It aims to promote the use of indigenous coal resources and augment the energy demand requirement of Isabela and the country as a whole. This project is being undertaken by virtue of COC 122 awarded by the Department of Energy on 23 December 1997, giving PNOC EC exclusive exploration rights over nine (9) coal blocks, totaling 9,000 hectares. Project Status as of December 2017:

PNOC EC continues with conduct of various CSR activities and conducted coal asset valuation, through its contractor, to determine the value of COC 122.

Project Title : Zamboanga Sibugay Coal Exploration Coal Operating Contract (COC) No. 185 Project Location : Buug-Malangas, Zamboanga Sibugay Nature of Project : Coal Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) 100% JV Partners and Percent Equity : None Project Description: PNOC EC intends to conduct exploration activities in COC 185 including block boundary survey and drilling of about twenty-two (22) drill holes to determine the extent, volume, behavior and quality of coal seams. This will be done for possible coal mining operations in line with the DOE’s directive to explore and develop indigenous energy resources of the country. Boundary survey will be conducted in the area and drilling of about 22 holes which are scheduled for implementation upon obtaining the Certificate Pre-Condition. Project Status as of December 2017:

PNOC EC located all proposed drill holes for the planned exploration drilling. Currently,

the Company is awaiting the issuance of the Certificate Pre-Condition from the National Commission on Indigenous Peoples (NCIP).

Project Title : Zamboanga Sibugay Coal Exploration Coal Operating Contract (COC) No. 186 Project Location : Imelda-Malangas, Zamboanga Sibugay Nature of Project : Coal Exploration Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) 100% JV Partners and Percent Equity : None Project Description: COC 186 is composed of five coal blocks with a total area of slightly more than 5,000 hectares. It is situated directly south of Coal Operating Contract 41. It encompasses 24 barangays across the municipalities of Imelda and Malangas. The 15 barangays under Imelda includes (from northernmost) Gandiangan, Canaan, Pulawan (Mt. View), Israel (Balian Israel), Mali Little Baguio, La Victoria, San Jose, Poblacion (Santa Fe), Sta. Barbara, Upper Baluran, Lower Baluran, Balungisan Dumpoc, and Baluyan. Malangas has 9 barangays which are included in the coal blocks, namely, (from westernmost) Bontong, Mulom. Rebocon, Overland, Camanga, Basak-Bawang, Candiis, Lipacan and Tackling. Small portions of the southwestern part of Block 78 are within the boundaries of Payao and Alicia. PNOC EC intends to conduct exploration activities in COC 186 including block boundary survey and drilling of at least forty-two (42) drill holes to determine the extent, volume, behavior and quality of coal seams for possible coal mining operations in line with the DOE’s directive to explore and develop indigenous energy resources of the country. Boundary survey for five coal blocks and drilling of about 42 holes are scheduled for implementation upon obtaining the Certificate Pre-Condition. Project Status as of December 2016:

PNOC EC located all proposed drill holes for the planned exploration drilling. Currently,

the Company is awaiting the issuance of the Certificate Pre-Condition from the National Commission on Indigenous Peoples (NCIP).

Project Title : COAL PRODUCTION AND SALES Project Location/s : Malangas, Zamboanga Sibugay Nature of Project : Coal trading Implementing Subsidiary : PNOC Exploration Corporation (PNOC EC) JV Partners & Percent Equity : PNOC EC 100% Project Description: PNOC EC markets the coal produced from its mine and other sources. To support its trading activities, PNOC EC operates a terminal in Malangas, Zamboanga Sibugay. This terminal serves as receiving port for stockpiling, blending and screening of coal for clients availing of the services. It caters to customers from different cement, industrial plants/small boiler users and paper mills/manufacturing sectors. Project Status as of December 2017: PNOC EC continues to market coal produced from various small-scale coal miners in COC 41 (Zamboanga Sibugay) and from other coal producers.

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 Description: 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 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. ESB generates income from the following services and/or activities: pier servicing, warehousing/space rentals, bunkering, cargo handling, equipment rental, royalty, water supply and manpower services. ESB operations was transferred to PNOC (mother company) beginning January 1, 2018. Project Status as of December 2017: ESB continues to provide berthing, cargo handling, storage and warehousing facilities to its energy and commercial clients during the year.

BSP EDPC BUILDING

December 2016

September 2017

Own-Use

Polycrystalline

297,841 kWh

212 Metric Tons

4964 Trees

Zero Upfront Scheme15-year Lease-Purchae Arrangement