PNOC unit in talks with foreign groups for geothermal projects

The PNOC-Energy Development Corp. (EDC) is pursuing talks with various countries for possible geothermal drilling activities this year.

"We have been talking to a lot of countries including Bangladesh, Cambodia, Indonesia, Iran and Kazakhstan for possible geothermal development projects," EDC president Paul Aquino said.

Aquino said EDC is now in the final negotiation stages with at least three of these countries for a potential geothermal exploration.

He said they are currently in exploratory talks with the Iranian and Indonesian governments.

"These talks were the results from the previous visits of President Arroyo in Iran and Indonesia," he said.

He said Pertamina of Indonesia is set to send its people to conduct feasibility studies for the projects.

EDC had been very active in tapping other countries for international business ventures.

Last year, EDC had reportedly joined forces with Chevron Texaco and Gulf Resources Inc. to bid for a natural gas development project in Bangladesh.

EDC is the geothermal unit of state-owned Philippine National Oil Co. (PNOC), Chevron is one of the largest oil development firms in the US while Gulf Resources is a European oil company.

The officials of EDC had met with Petro Bangla, the state-owned oil development firm of Bangladesh to discuss the details of the project.

In 2003, the company has allocated some P20 million for its operational budget and capital expenditure including its investment in drilling projects abroad. EDC expects to spend the same amount for 2004.

Aside from the new international prospects, EDC has drilling projects in Papua New Guinea, Australia and some Middle Eastern countries.

At present, EDC is the Philippines‚ premier geothermal company with 1,149.4 MW installed capacity spread over geothermal steamfields in Leyte, Negros Oriental, Bicol, and North Cotabato. This represents 60 percent of the country’s total geothermal capacity.