Nor Asian, Clean Rock qualify for PECR4

Manila, Philippines -  At least two upstream oil firms have been qualified to bid for petroleum and oil service contracts, the Department of Energy (DOE) said.

Specifically, NorAsian Energy Ltd., a subsidiary of Otto Energy Ltd., and Clean Rock Renewable Energy Resources Corp. were cleared to join the auction for new oil and petroleum projects.

DOE Undersecretary Jose Layug Jr. said “for those with non-substantive deficiencies in their submissions, we have granted their exemption request, their motion for reconsideration.”

In April, the DOE received 16 bids under the Philippine Energy Contracting Round (PECR) 4. Seven that were initially disqualified all filed motions for reconsideration.

“Around two to three of them we have denied, the others we have granted. We are just finalizing the letter responses,” Layug said.

But the DOE denied the request of firms that had substantive documentary deficiencies, Layug said.

Substantive defects include the lack of financial statements and the absence of economic and development concept for the service contract.

Layug said the DOE will proceed in the evaluation of the bid documents of NorAsian and Clean Rock.

“The process is our technical, financial and legal divisions will evaluate, specially our technical team because every area we have a minimum work program requirements,” Layug said.

Clean Rock bid for Area 2 in Central Luzon while NorAsian bid for Area 7 in Mindoro Cuyo and Area 15 in the Sulu Sea.

Layug said the two firms initially did not submit economic concepts of recoverable quantities as there were no determined reserves yet in the service contract areas.

In July last year, the DOE launched PECR 4, offering 15 new gas exploration areas nationwide that will require around $7.5 billion in investments.

Service contracts subject to the May 4 bidding were Area 1 (544,000 hectares) in Cagayan; Area 2 (676,000) in Central Luzon; Area 6 (840,000) in Mindoro Cuyo; Area 7 (844,000) in Mindoro Cuyo; Area 8 (840,000) in East Palawan; Area 9 (840,000) in East Palawan; Area 10 (640,000) in East Palawan; Area 11 (600,000) in Cotabato; Area 12 (456,000) in Cotabato; and Area 15 (482,000) in Sulu Sea.

Other qualified bidders include Forum Pacific Inc., the partnership of Philodrill Corp. and Philex Petroleum, Dil Moro Energy Corp., Min Energy Pty Ltd., Loyz Oil Pte Ltd. of Singapore and Mitra Energy Ltd. of Malaysia.