Oil and Gas Flashcards
Main mining legislation in the Philippines
Philippine Mining Act of 1995, Republic Act (RA) No. 7942
administers the mining industry and ensures compliance with the Mining Act. The _____________________ administers and disposes of mineral lands and resources through the grant of exploration permits (EPs) and/or Mineral Agreements (MAs) to duly qualified entities.
DENR – Mines and Geosciences Bureau
largest surface mine in Philippines, owned by Atlas Consolidated Mining and Development Corp.
Carmen Copper Mine
second largest surface mine, owned by Semirara Mining and
Power Corp.
Molave Project
third-largest mine; owned by Pacific Metals Co Ltd;Sojitz Corp;Nickel Asia Corp.
Taganito Mine
fourth-largest mine; owned by B2Gold Corp;Zoom Minerals Holdings Inc.
Masbate Mine
fifth-largest mine; owned by Semirara Mining and Power Corp.
Narra Project
continued to have the biggest share in installed
generating capacity in the entire country as of April 2021,
Aboitiz Power Corporation
business of oil and gas exploration and production
Upstream
business of oil and gas transportation, and storage
Midstream
business of oil and gas refining and marketing
Downstream
Leading oil companies
Shell
Petron Corporation
Chevron Philippines
extraction and utilization of minerals or other geological materials from an ore, lode, vein, seam, reef or placer deposit.
Mining
process of finding ore to mine
Exploration
Summary of how mining industries conduct their business
Phase 1: Exploration
Phase 2: Evaluation
Phase 3: Development
Phase 4: Production
Phase 4: Closure and rehabilitation
expended in the process of identifying hydrocarbon resources
Exploration costs
dedicated to evaluating the technical feasibility and economic viability of the discovered resources
Evaluation costs
mechanism through which governments enable the utilization of their nation’s hydrocarbon resources by leveraging the expertise of a commercial oil and gas entity.
Product sharing agreement
play a crucial role in purifying and transforming oil and gas into consumer products like gasoline, jet fuel, heating oil, and asphalt
Refineries
outlets where consumers refuel their vehicles at the pump.
gas station
tasked with developing and executing all governmental plans, programs, projects, and initiatives pertaining to the exploration, development, utilization, distribution, and conservation of energy.
Department of Energy
authority to regulate the rates, charges, and terms of service of electric power utilities.
Energy Regulatory Commission
government-owned and controlled corporation, assumes the responsibility for the development, operation, and maintenance of power generation facilities
National Power Corporation
largest coal producer in the Philippines and the sole power producer in the nation with ownership and extraction rights to its own fuel source.
Semirara Mining and Power Corporation
the oldest mining company in the Philippines, currently engaged in the production and marketing of gold, silver, nickel ore, and limestone.
Benguet Corporation
the largest oil refining and marketing firm in the Philippines, providing over one-third of the nation’s oil needs.
Petron Corporation
Industry Characteristics (Oil and Gas)
Industry Characteristics:
* nonrenewable and finite character of oil, gas, and mineral resources
* high capital intensity
* long-lived assets
* price-taking producers (prices are set in global markets, and only to a limited extent influenced by individual producers)
* geographically immobile investments
* international nature of commodity markets and EI investors.
Special Audit Considerations (Oil and Gas)
Special Audit Considerations:
* Accounting for Exploration and Evaluation Assets (PFRS 6)
* Development Assets and Mining Rights (PAS 16, PAS 38)
* Impairment of assets ↑ (PAS 36, PFRS 6)
* Asset Retirement Obligation (PAS 16, PAS 37)
Risks faced by the oil and gas industry include, but are not limited to, the following:
Risks faced by the oil and gas industry include, but are not limited to, the following:
- Exploration drilling risk
- Developmental drilling risk
- Production risk
- Inaccurate proved reserve estimates
- Risk of volatile oil and natural gas prices
- Environmental issues and regulations—which could increase costs
- Risks related to international operations
- Risk of susceptibility of assets to natural disasters
