A PRESENTATION BY

PRESENTORS PROFILE CAESAR R. VENTURA President, KLM Foundation, Inc.

Positions Occupied in the Provincial Government of Palawan (1976 2001): Provincial Budget Officer, (1979 Feb. 2001) Executive Director, Special Program Services Chairman, Provincial Finance Committee Chairman, Palawan Bond Flotation Committee

Chairman, Provincial Energy Committee

Company Registration No. CN200914052 Company TIN: 007-363-857 Date Registered : September 10, 2009 Company Address: No. 268 Manalo Street Puerto Princesa City Fax No. +63484344725 Email: kml_dabadaba@hotmail.phj

THE ADVOCACY OF KLM . . . . .

MALAMPAYA IS THE ANSWER TO POVERTY NOT MINING IN THE FOREST OF PALAWAN

COUNTDOWN START 40 MILLION YEARS AGO AND PALAWAN STILL PART OF EUARASIAN CONTINENT

40
MILLION Yrs. ago

PALAWAN

20
COUNTDOWN

10
COUNTDOWN

1
COUNTDOWN

0
COUNTDOWN

PALAWAN IS A MICROCONTINENT BY ITSELF AND MOST PETROLEUM DEPOSIT IN THE PHILIPPINES ARE FOUND THERE

PALAWAN, THE ONLY ISLAND PROVINCE WITH A CONTINENTAL SHELF

54 kms. distance
PALAWAN LANDMASS

West Palawan Sea

Sea bed
Continental Shelf

THE JOINT VENTURE AGREEMENT

SHELL PHILIPPINES EXPLORATION (SPEX)

GOVERNMENT REPUBLIC OF THE PHILIPPINES (GRP) THE CONTINENTAL SHELF OF PALAWAN

US$ 2.0 BILYON

INVESTMENT SHARING SCHEME AFTER COST RECOVERY AND OPERATING COST R.A. 7160

40 % *

60%

PALAWAN 40%

GOVT (GRP) 60%

* PNOC Exploration Corp. holds 10% of the Malampaya Gas Project

 Administrative Order No. 381 of

Pres. Fidel Ramos during his term, affirming the entitlement of 40% share of the province of Palawan for an estimated amount of 2 Billion USD* for 20 years operation of Malampaya Gas Project. *The oil index in 1998 was US $ 15.00 per barrel

3 kms. dept

The deposits:
Oil 26 to 94 M Barrels Gas 2.4 to 4.1 Trillion Cubic Ft. Condensate Oil 75 to 129 M Barrels

Batangas Tabangao, Batangas

Busuanga Is. Malampaya Gas Projetct

Palawan Is.

24 Inches Pipes diameter

GAS PROCESSING FACILITIES AT BATANGAS TO SUPPLY THE NATURAL GAS FOR POWER PLANT WITH COMBINE CAPACITY OF 2,700 MW

Santa Rita Power Plant

Calabarzon Power Plant

Ilijan Power Plant

MALAMPAYA GAS PROJECT Distance -54 kms.

CUYO IS
KALAYAAN GROUP OF ISLANDS. Distance 500 kms

CAGAYANCILLO IS

BEFORE THE OPERATION STARTED, July 2001

AT THE PROVINCIAL CAPITOL COMPOUND OF THE PROVINCE OF PALAWAN as quotedPALAWAN IS VERY RICH BECAUSE OF THE SHARE OF PALAWAN FROM THE MALAMPAYA GAS PROJECT. DURING INAUGURATION OF THE

NATURAL GAS FACILITIES AT TABANGAO,BATANGAS,Oct.16,2001 as

quoted - THE MALAMPAYA GAS PROJECT IS LOCATED OFF-SHORE OF PALAWAN AND WILL ONLY RECEIVE FINANCIAL ASSISTANCE.

THIS IS ONE OF THE MAIN REASONS WHY KILUSAN LOVE MALAMPAYA WAS ORGANIZED.

TO FIGHT FOR THE RIGHTS OF PALAWAN ON LEGAL SHARE FROM THE MALAMPAYA GAS PROJECT.

THE KLM FOUNDING MEMBERS:

Bishop Pedro Arigo Spiritual Adviser

3 1

1. GERRY V. ORTEGA - Chairman 2. CAESAR R. VENTURA - President 3. Prof. OSCAR EVANGELISTA Vice President for External 4. Dr. JOSE ANTONIO SOCRATES (not in the picture) Vice President for Internal Affairs

THE MARTYR:

KLM CHAIRMAN DOC GERRY ORTEGA

JUSTICE FOR DOC GERRY ORTEGA That may very well have earned him enemies, is
his work to uncover the misuse of billions of pesos from the Malampaya gas funds.

THE KILUSAN LOVE MALAMPAYA FILED A CASE WITH THE SUPREME COURT DECLARING THAT THE INTERIM AGREEMENT SIGNED BETWEEN THE PROVINCIAL GOVERNMENT OF PALAWAN AND THE NATIONAL GOVERNMENT TO GRANT FINANCIAL ASSISTANCE TO PALAWAN IS ILLEGAL.

THE CASE IS NOW AWAITING FOR THE FINAL DECISION OF THE SUPREME COURT.

THE GROSS SHARE OF NATIONAL GOVT IS PhP146.9 BILLION FROM 2001 TO APRIL, 2009 AS PER RECORD OF THE DEPT. OF ENERGY
YEAR GRP Share Gross of 60% 2001 2002 2003 2004 2005 2006 10,266,399.25 116,083,389.42 146,576,716.08 162,046,755.59 197,085,616,07 496,916,045.75 Corporate Income Tax 3,220,831.14 36,383,108.25 45,883,223.67 50,794,768.83 61,710,558.46 178,067,707.34 Branch Profit Remittance 997,562.98 11,279,562.46 14,242,530.58 15,745,719.61 19,150,367.05 48,284,217.11 Palawan Share Net of 40% 2,419,202.06 27,368,287.50 34,580,384.73 38,202,506.86 46,489,876.21 108,226,648.51 GRP Share Net of 60% 3,628,803.08 41,052,431.22 51,870,577.09 57,303,760.29 69,734,814.34 162,338,472.79

2007
2008

706,420,349.30
1,050,284,494.99

253,359,067.01
376,917,170.78

68,104,443.32
101,788,700.16

153,982,735.58
228,631,449.61

230,974,103.35
342,947,174.43

Jan.-Apr. 2009
TOTAL
Philippine Currency

240,103,129,02

68,596,620.42

22,899,280.31
302,492,383.58

59,442,891.35
699,342,982.42

89,164,336.95
1,049,014,473.55

3,125,782,895.47 1,074,933,055.89

146,911,796,087.09

50,521,853,626.83

14,217,142,028.26

32,869,120,173.74

49,303,680,256.85

PALAWAN LOSSES FROM THE IMPLEMENTATION OF THE INTERIM AGREEMENT

Basis
Gross Share of the Govt Share of the Government Share of Palawan (RA 7160) 60% 40%

Percentage

Amount
P 146.8 Billion 88.2 Billion

P 58.6 Billion

P 58.6 Billion P 29.3 Billion P 3.1 Billion

P55.5 Billion

R.A. 7160: 40% Palawans Share

Interim Agreement 50% of 40% Share

Actual Financial Assistance to Palawan

Palawan Losses

E.O. 254, Dec. 8, 2003

E.O. 254-A, Feb. , 2004

P300M

P300M

E.O. 683, Dec. 1, 2007

P 2,592,611,597.40

There are many energy related projects that can be developed from the Malampaya funds. For example, the funding for the government Renewable Energy Program. The DOE announced that some P3.5 billion will be needed for the program which would be charged through our electric bills. The COA report on the consumption of Malampaya fund is quiet alarming, because it pointed out that most of P19.4 billion expended from the fund went to projects unrelated to energy development, while only 1.27 percent went to the DOE for the electrification of 211 villages.

Sept. 18, 2010 , COA: National Government short changed in gas project as the it lost P53.140 billion between years 2003 and 2009 because the income taxes of the service contractors were deducted from the 60% share of National Government. (The House was supposed to conduct an investigation through a resolution filed by Rep. Rufus Rodriguez and Abante Rep. Maximo Rodriguez)

Sept. 23, 2010 The Aquino Administration wants 40% of revenues from the Malampaya Natural Gas Project of Palawan to go on to National Government, following the cessation of an agreement between the National and local government of Palawan. Budget Secretary Florencio Abads recommendation. KLM MADE A STRONG OBJECTION ON THIS MOVE, AS THERE IS PENDING CASE SUBMITTED TO THE SUPREME COURT. THE 40% SHARE OF PALAWAN MUST BE PLACE UNDER ESCROW ACCOUNT .

Jan. 22, 2011 : National Government earns P102 B from Malampaya in 2010 as reported by National Treasurer Roberto B. Tan in national newspapers

Government receives P200 billion in Malampaya royalties By Donnabelle L. Gatdula (The Philippine Star) Updated July 11, 2011 12:00 AM

The government has received a total of P200.41 billion or $4.6 billion in Malampaya royalties from 2002 to May this year. The Malampaya field is projected to produce gas for 25 years. It started commercial operations in 2001.

The Philippines bought the 115-m (378-foot) cutter for around P450 million under the US Excess Defense Articles (EDA) program, paying with money from the Philippine Malampaya project concluding that the ship will ensure maritime security. The Malampaya natural gas project lies in waters of western Palawan near the disputed Spratly Islands.

Military upgrade pushed amid Spratlys tension

Budget Secretary Florencio Abad said that, The government will shell out this year another P40 billion, to arise from the governments share of royalties from Malampaya gas fields operation. The P40 billion-budget will be given in P10 billion equal tranches in the next four years.

The potential petroleum deposits in Palawan has already been established, with Palawan being known as the Oil Province in the Philippines.

NORTHWEST PALAWAN PRODUCING OIL AND GAS FIELDS AND CONTRACT SC 38 AREAS

SC 50 OTTOMAN

SHELL

SC 38

SHELL

SC 14 PHILODRILL
MALAMPAYA FIELD

GALOC FIELD

SC 6B PHILODRILL
MATINLOC FIELD CADLAO FIELD

SC 55

NIDO NIDO FIELD PETROLEUM

OIL FIELD GAS FIELD

SEPTEMBER, 2009:

Australian driller confirms bigger oil find off Palawan The Yakal-1 well is the first to be drilled in almost 10 years in the northwest Palawan Basin, which Nido describes as the most promising offshore area in the country. It will be followed by the Tindalo-1 well in the same service contract area. Nido said that each of the wells was targeting a discovery of between two million and 20 million barrels of oil.

June 8, 2010 - 18,600 barrels a day of Oil Production from Tindalo Well operated by Nido Petroleum Ltd.

Galoc production as of June 30, 2010 is 5,142,780 barrels operated by Galoc Consortium (Nido Petroleum, Oriental Petroleum, UK Fiorum Energy Phil and Alcorn Gold Resources).

Possible deposits of oil in Spratlys ranges from 2billion to 200 billion barrels, as per foreign and local scientists and engineers estimation. According to Russian Research Institutes of Geology of Foreign Countries, there maybe 7billion barrels; the United States Geological Survey estimates 28 billion barrels; and the Chineses estimate 100 billion to 200 billion barrels of oil deposits.

Palawan is the richest province in the Philippines in terms of its Natural Resources : - It supplies 60% marine products for the consumption of Metro Manila. - It is the biggest Nickel Deposits in the Philippines with earnings of more than a Billion USD annually . - It is the Oil and Gas Producing Province with more than 2 billions USD annual profits to the Philippines. - Its has too many Wonder of Natures that will send million of tourists to the Philippines.

80%

KLMs VISION FOR PALAWAN 40% share of Palawan

PhP 496.3 BILYON

20%

PhP 396.0 BILYON

- Roads

PhP 100 BILYON

- Education

& Bridges - Airport/Port Devt - Backbone Grid - Distribution Lines - Renewable Power Proj.

HEART

- Small Scale Industry - Agriculture - Health - Environment

Redound to lowering of electric cost

Increase Tourism Activities, more investors and industrialization

Generates Livelihood

Sustainability of Public Utilities Services

Increase in Tax Revenues

More Entrepreneurship, Free Health/Education

IF THE PALAWENYOS ARE FIGHTING FOR ITS LEGAL 40% SHARE, WHAT ABOUT THE OTHER 60% SHARE ?

SHOW YOUR SUPPORT BY VOTING NOW !

VOTE NOW: New 7 Wonders Text PPUR Send to 2861

MARAMING SALAMAT PO!