"We will be a sub-contractor for a project in the Middle East. The contract is for the exploration, drilling and reservoir (EDR) management," PNOC-EDC president and CEO Paul A. Aquino said.
Aquino said their group may stand a good chance of bagging the contract since there are a very few companies that have the same expertise as PNOC-EDC.
"Only Filipino and US companies have the capability to handle EDR," the PNOC-EDC official said.
EDR will involve power plant maintenance, exploration, fluid collection and re-injection operation and maintenance.
He, however, said that PNOC-EDC will not be directly part of the bidding process. "We will just be the sub-contractor for a German firm that will bid for the project. We may send manpower to the project," he said.
PNOC-EDC has been pursuing talks with various countries for possible geothermal drilling activities.
Last year, it was reported that the PNOC unit has been talking with countries including Bangladesh, Cambodia, Indonesia, Iran and Kazakhstan.
In 2003, PNOC-EDC had reportedly joined forces with Chevron Texaco and Gulf Resources Inc. to bid for a natural gas development project in Bangladesh.
PNOC-EDC is the geothermal unit of state-owned Philippine National Oil Co. while Chevron is one of the largest oil development firms in the US. Gulf Resources is a European oil company.
The company has allocated some P20 million for its operational budget and capital expenditure including its investment in drilling projects abroad in 2003. PNOC-EDC expects to spend the same amount for 2004.
Aside from the new international prospects, the PNOC unit has drilling projects in Papua New Guinea, Australia and some Middle Eastern countries.
PNOC-EDC was created in 1976 by virtue of Presidential Decree 334 to accelerate the exploration, delineation and development of indigenous energy resources. A drilling division was consequently formed to carry out the company’s mission.
At present, PNOC-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.
PNOC-EDC is aggressively enhancing its drilling activities here and abroad as it gets ready for an initial public offering (IPO).