Oil and Gas

Question 1

Main mining legislation in the Philippines

Answer 1

Philippine Mining Act of 1995, Republic Act (RA) No. 7942

Question 2

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.

Answer 2

DENR – Mines and Geosciences Bureau

Question 3

largest surface mine in Philippines, owned by Atlas Consolidated Mining and Development Corp.

Answer 3

Carmen Copper Mine

Question 4

second largest surface mine, owned by Semirara Mining and
Power Corp.

Answer 4

Molave Project

Question 5

third-largest mine; owned by Pacific Metals Co Ltd;Sojitz Corp;Nickel Asia Corp.

Answer 5

Taganito Mine

Question 6

fourth-largest mine; owned by B2Gold Corp;Zoom Minerals Holdings Inc.

Answer 6

Masbate Mine

Question 7

fifth-largest mine; owned by Semirara Mining and Power Corp.

Answer 7

Narra Project

Question 8

continued to have the biggest share in installed
generating capacity in the entire country as of April 2021,

Answer 8

Aboitiz Power Corporation

Question 9

business of oil and gas exploration and production

Answer 9

Upstream

Question 10

business of oil and gas transportation, and storage

Answer 10

Midstream

Question 11

business of oil and gas refining and marketing

Answer 11

Downstream

Question 12

Leading oil companies

Answer 12

Shell
Petron Corporation
Chevron Philippines

Question 13

extraction and utilization of minerals or other geological materials from an ore, lode, vein, seam, reef or placer deposit.

Answer 13

Mining

Question 14

process of finding ore to mine

Answer 14

Exploration

Question 15

Summary of how mining industries conduct their business

Answer 15

Phase 1: Exploration
Phase 2: Evaluation
Phase 3: Development
Phase 4: Production
Phase 4: Closure and rehabilitation

Question 16

expended in the process of identifying hydrocarbon resources

Answer 16

Exploration costs

Question 17

dedicated to evaluating the technical feasibility and economic viability of the discovered resources

Answer 17

Evaluation costs

Question 18

mechanism through which governments enable the utilization of their nation’s hydrocarbon resources by leveraging the expertise of a commercial oil and gas entity.

Answer 18

Product sharing agreement

Question 19

play a crucial role in purifying and transforming oil and gas into consumer products like gasoline, jet fuel, heating oil, and asphalt

Answer 19

Refineries

Question 20

outlets where consumers refuel their vehicles at the pump.

Answer 20

gas station

Question 21

tasked with developing and executing all governmental plans, programs, projects, and initiatives pertaining to the exploration, development, utilization, distribution, and conservation of energy.

Answer 21

Department of Energy

Question 22

authority to regulate the rates, charges, and terms of service of electric power utilities.

Answer 22

Energy Regulatory Commission

Question 23

government-owned and controlled corporation, assumes the responsibility for the development, operation, and maintenance of power generation facilities

Answer 23

National Power Corporation

Question 24

largest coal producer in the Philippines and the sole power producer in the nation with ownership and extraction rights to its own fuel source.

Answer 24

Semirara Mining and Power Corporation

Question 25

the oldest mining company in the Philippines, currently engaged in the production and marketing of gold, silver, nickel ore, and limestone.

Answer 25

Benguet Corporation

Question 26

the largest oil refining and marketing firm in the Philippines, providing over one-third of the nation's oil needs.

Answer 26

Petron Corporation

Question 27

Industry Characteristics (Oil and Gas)

Answer 27

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.

Question 28

Special Audit Considerations (Oil and Gas)

Answer 28

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)

Question 29

Risks faced by the oil and gas industry include, but are not limited to, the following:

Answer 29

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