6 firms propose to search for oil, coal in RP

The Department of Energy (DOE) has solicited six proposals from local and international upstream companies for oil, coal and geothermal exploration projects in the country as it closed the PECR application period last Nov. 29 in the country.

Energy Secretary Raphael P.M. Lotilla said yesterday they have received at least six proposals from both local and international upstream companies for the petroleum areas.

Lotilla said five companies have expressed interest for coal exploration areas in the country.

But the energy chief said they have yet to receive proposals for the geothermal areas.

"We are very pleased that a number of local and international upstream companies have expressed keen interest to participate in the exploration and development of the country’s coal, geothermal and petroleum resources," Lotilla said.

He said the proposals submitted will now be reviewed by the DOE on the basis of work program, financial and technical qualifications of contractors, among others.

"We are hopeful that we will find partners towards development of our own energy resources to move us closer to our goal of energy self-sufficiency," Lotilla said.

The government aims to achieve 60-percent energy self-sufficiency by 2010, using indigenous energy including domestic oil and gas resources.

Last August, the DOE opened for bidding promising sites for coal, geothermal and petroleum exploration and development.

Seven areas were offered for exploration, development and production of the country’s coal resources.

The areas have a total resource potential of 741 million metric tons of coal. Meanwhile, for geothermal, 11 areas for exploration, development and/or direct utilization for power generation use and other geothermal applications were offered.

Under the PECR, four contract areas within offshore Palawan and Sulu Sea were offered for petroleum exploration.

The four petroleum contract areas cover a total of 53,989.40 square kilometers in shallow to deep waters located near proven petroleum reserves in offshore Southwest Palawan, East Palawan and Sulu Sea basin.

More than 20 local and international upstream companies have evaluated the investment opportunities for coal, geothermal and petroleum exploration and development during the period of investment promotions.

Disclosure of the names and number of companies that actually submitted their proposals will follow in accordance with the PECR guidelines.

Following the submission of the bids, the DOE will commence with the technical, legal and financial evaluation. The awarding of contracts is expected in June 2006.