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October 08, 1995

SUBJECT: Areas of Cooperation Between the Government of the Republic of the Philippines (RP) and the Government of the Islamic Republic of Iran (IRI) in the Field of Energy

Pursuant to the meeting held on 26 September 1995, during "Advance party Presidential visit" negotiations in the Republic of the Philippines, the followings were tentatively, agreed to be subject to further negotiations in order to prepare tangible and practicable subjects of cooperation.

1.	Technical Assistance/Exchange of Information
1.1	Due to good experience of Iranian companies and organisations in the field of oil, gas and petrochemicals, Iran will provide technical assistance and will conduct training /workshop /study /advisory services for the Philippines in the following issues subject to relevant future discussions and mutual agreement for each issue:
1.1.1	Policies / laws governing acquisition of oil/gas exploration and production rights, service contracts, taxation, production services and other aspects.
1.1.2	Geology and petroleum potentials exploration history and production history.
1.1.3	Technical/strategic information exchange on the petrochemical industry.
1.1.4	Training of the Philippine personnel in natural gas exploration and production.
1.1.5	Training of Philippine personnel in economic valuation and pricing of gas at various points in the fuel cycle.
1.1.6	Iranian Technical Assistance for oil/gas exploration, marketing of petroleume products, establishment of related distribution facilities, and putting up refineries.
2. Cooperation in crude oil and Petrochemical supply assurance and trading
2.1	Considering Iran is a major producer of oil, oil products and petrochemicals, Republic of the Philippines will consider the purchase of such items from IRI .
2.2	RP requires the purchase of' light naphta to be used as feed for the cracker facility IRI will submit its proposal with regard to price, quality and quantity after receiving relevant documentation including specification of the required naphta, from RP
2.3	Ministerial discussion on the possibility of supplying Iranian oil to Philippines on regular basis and during crisis.
3. Investment/Joint Venture for Oil & Gas Exploration
3.1	RP requires's consideration for possible investment or joint venture for exploration and development of the Philippines s oil and gas fields especially those located in Mindanao region.
3.2	IRI welcomes participation of Philippine companies 'in the investment/joint venture for oil/gas exploration and production.
4. Materials and Equipment for Power Transmission Lines
4.1	RP intends to purchase materials and equipment required for power transmission lines from IRI.
4.2	IRI will submit a list of such material & equipment along with their technical specifications to RP.
4.3	RP will submit quotation request for selected materials and equipment to IRI.
5. "Engineering Services and construction
5.1	Iran has various engineering and construction campanies having sufficient experience and required capabilities to be qualified to participate in tenders for design and Construction of oil, gas, petrochemicals, power plants and electrical substation facilities as well as transfer pipelines and power transmission lines.
5.2	IRI will furnish Republic of the Philippines with the relevant documentation of such Iranian companies to be qualified and short listed for future tenders.
5.3	RP will furnish IRI with the list and general specifications and information of near future tenders and IRI will recommend competent Iranian firms to participate in such tenders.

Aspects of this MOU which do not require Ministerial Discussion, specifically items 4.2, 4.3, 5.2, 1.3 shall be implemented upon continuing correspondence between the signatories.

Done at Manila 8, OCTOBER 1995 ( Mehr 16,1374 ).