The public bidding called First Philippine Petroleum Public Contracting Round (PCR-1) is a new mechanism of awarding concessions in oil and gas explorations in the Northwest Palawan and vast frontier areas in Southwest and East Palawan, Sulu Sea and Reed Bank.
PCR-1 replaced the DOE’s current licensing procedure grants on a "first-come, first-served basis" negotiations.
Energy Secretary Vincent S. Perez said PCR-1 hopes to replicate the technical and commercial success of the deep water Malampaya gas project in offshore Palawan which is the first big commercial natural gas discovery in the country.
Perez said PRC-1, with flexible and liberal fiscal terms in the world and now a more open, investor-friendly contracting process, should attract both local and foreign investors.
The areas to be opened for licensing cover a total of 215,000 square kilometers which contain the highest potential for large oil and gas accumulations.
The anticipated prospects are believed analogous to those that have been proven productive in Brunei, Sabah, Indonesia as well as in Vietnam and South China.
The DOE will formally announce the opening of PCR-1 on Aug. 5, 2003 at the Peninsula Manila, Makati City. All the details covering technical, financial, legal requirements as well as the licensing process will be explained in that meeting.
"We encourage all local and foreign participants to attend the announcement meeting and take a serious look at these areas," Perez said.
He said all the known oil, exploration and production players in Asia, North America, Europe and the former Soviet Union were offered to participate in the bidding.
PRC-1 is the first major effort of the government to revive interest in oil and gas exploration in the country after the Malampaya gas-to-power project.