Amending Executive Order No. 473 and Requiring The Exploration, Development and Production ff Crude Oil from The Camago-Malampaya Reservoir to be Undertaken Through Bidding

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO 556 June 17, 2006

AMENDING EXECUTIVE ORDER NO. 473 AND REQUIRING THE EXPLORATION, DEVELOPMENT AND PRODUCTION OF CRUDE OIL FROM THE CAMAGO-MALAMPAYA RESERVOIR TO BE UNDERTAKEN THROUGH BIDDING

WHEREAS, Executive Order no. 473 tasked the Department of Energy (DOE) to pursue the immediate exploration, development and production of crude oil from the Camago-Malampaya Reservoir;

WHEREAS, transparency is a government policy;

WHEREAS, it is government policy to bid out projects unless only one qualified bidder emerges from a published invitation to bid;

NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. There shall be no "farm-in" or "farm-out" contracts awarded by any government agency, including the Philippine National Oil Company (PNOC), including the contract for the exploration, development and production of crude oil from the Camago-Malampaya Reservoir.

Section 2. All government agencies, including the PNOC, shall follow a strict bidding procedure in forging partnership with interested parties, including...

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Summary of Executive Order No. 556

Bidding Requirement for Exploration, Development and Production of Crude Oil from Camago-Malampaya Reservoir
- All government agencies, including the Philippine National Oil Company (PNOC), shall follow a strict bidding procedure for partnerships related to the Camago-Malampaya Reservoir venture. (Section 2)
- No "farm-in" or "farm-out" contracts shall be awarded for the Camago-Malampaya Reservoir venture. (Section 1)

Partner Requirements
- The corporate identity of any partner must be beyond question. (Section 3)
- The partner must have sufficient paid-up capital to show financial capability for the venture. (Section 4)
- No contracts shall be awarded to companies registered in jurisdictions known for money laundering. (Section 5)
- Contracts can only be awarded to true principal groups, not traders or brokers. (Section 6)

Cancellation of Non-Compliant Arrangements
- Any negotiations or arrangements violating this Executive Order shall be immediately discontinued or cancelled. (Section 7)

Repealing Inconsistent Issuances
- All other executive issuances, rules, and regulations, including Executive Order 473, inconsistent with this Executive Order are repealed, amended, or modified accordingly. (Section 8)

Effectivity
- This Executive Order shall take effect immediately after publication in the Official Gazette or a newspaper of general circulation. (Section 9)