APC unit set to sign $3.7-M geothermal service contract
Aragorn Power and Energy Corp. (APEC) and its partner Guidance Management Corp. (GMC) are set to sign a $3.7-million geothermal service contract with the Department of Energy (DOE).
The contract will signal the start of a five-year exploration activity in the province of Kalinga, said to have the potential to produce 60 megawatts (MW) of electricity.
APEC is a wholly-owned unit of the APC Group. It likewise holds a service contract for the exploration and development of gas and oil resources in the Cagayan Valley.
The Philippines has nearly 2,000 MW of capacity from existing geothermal fields, operated by both private and government corporations.
Nearly 20 percent of power generated in the country comes from geothermal projects while the rest comes from oil-powered plants, coal, natural gas and hydro.
Aside from the geothermal service contract, the DOE will also sign petroleum contracts with several companies for oil exploration.
These are Burgundy Global Exploration Corp. (BGEC), PNOC Exploration Corp. (PNOC-EC), Blade Petroleum Philippines Ltd. (BPPL) and Venture Oil. The companies will explore and develop contract areas offered during the Philippine Energy Contracting Round (PECR).
Energy Secretary Angelo T. Reyes said the PECR will fasttrack the development of the country’s indigenous energy resources.
“The benefits are clear. As we increase our ability to source energy supply locally, we reduce dependence on imports and ensure our energy security. Through the PECR, we are encouraging the private sector to participate in the government’s energy independence program,” Reyes said in a statement. — Ted Torres
Reyes will award a participation agreement to BGEC and PNOC-EC to take part in the Camago-Malampaya Oil Leg. He will also sign the extension of the petroleum service contract of BPPL and Venture Oil in the Cadlao Block of Service Contract 6.
To date, there are 33 active petroleum service contracts in the country. — Ted Torres
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