DOE finalizing evaluation of bids

MANILA, Philippines - The Department of Energy (DOE) is finalizing the evaluation for at least eight bids for new oil and petroleum projects.

This will allow the department to award new service contracts to several bidders in the next two months, Energy Secretary Jose Rene Almendras said.

“We are close to finishing the evaluation of the first eight. We may be able to announce results within 60 days,” Almendras said.

The DOE earlier targeted to award the projects late in July. But the recommendation of winning bids, planned for end-June, was delayed to give authorities more time to evaluate the offers.

Almendras said there are three stages of reviews to ensure a level playing field in the selection process.

In April, the DOE received 16 bids under the Philippine Energy Contracting Round 4 which was launched last year, offering 15 new gas exploration areas nationwide that will require around $7.5 billion in investments.

Of the 16 bids, 13 offers were accepted by the DOE for technical evaluation, which includes checking the proposed work program of the bidders.

Qualified bidders include listed 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.

However, the DOE might award less than eight service contracts given the upstream oil firms’ non-compliance to documentary requirements.

“A lot of the companies lacked in the submission of documents so it is possible we may have to re-offer some (service contracts),” Almendras said.

Almendras said the DOE will rebid several oil and petroleum projects to instead of awarding it to non-compliant companies to prevent complaints.

“We are offering [the service contracts] more often because we want to explore more oil and gas here,” Almendras said.

The DOE expects that if the projects proceed into commercial operations, it would help the country increase its energy self sufficiency rate from the current 58 percent.

Service contracts that were 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.