DOE to bid out 10 coal contracts next month

MANILA, Philippines - The Department of Energy (DOE) is eyeing to bid out up to 10 coal exploration contracts by next month, a ranking DOE official said.

Energy Undersecretary Jay Layug said these coal areas would likely be located in Mindanao.

Layug, however, said at this point, they have firmed up only five of the 10 possible areas.

“So far we have only five areas. We have yet to finalize the exact number of contracts to be bid out,” he said, adding they would soon release the final details of the coal contracting round.

“We may be looking at an additional five more because we need a final go signal from DENR. We’re looking for end-October now. So initially, five areas in Mindanao,” he said.

After the successful launch of the Public Energy Contracting Round (PECR) for oil and gas last July, the DOE had said it would be preparingfor another PECR, this time to coal contracts.

In 2003, the DOE launched PCR-1 wherein exploration blocks near oil producing areas in Northwest Palawan and in vast frontier basins in Southwest and East Palawan, Sulu Sea and Reed Bank were offered for investors. Continuing the gains of PCR-1, in August 2005, the DOE conducted PECR 2005 wherein it offered investors opportunities for exploration and development not only of petroleum resources but also exploration and development of coal and geothermal resources.

Since 2005, the DOE has engaged in public contracting rounds in an aim to make the bidding of energy contracts more transparent.

When the PECR was introduced, no more service contracts were awarded without passing through this process.

So far, there are 13 petroleum service contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts worth well over P1 billion in investments awarded under the PECR.

Over a hundred renewable energy service contracts were also signed by the DOE the past months.