MANILA, Philippines - Oil production in the Philippines could rise 50 percent or up to 39,000 barrels per day by 2019 from 26,000 bpd in 2013, according to data from the United States Energy Information Administration (EIA).
In a recent report on the Philippines, EIA said the current exploration round launched by the Department of Energy (DOE) could boost the country’s oil production and reduce its dependence on fuel imports.
Specifically, EIA said that the 11 oil and gas blocks in the Palawan Basin and nearby areas offered by the DOE for exploration could significantly boost production.
“This exploration bid could push oil production up to 39,000 bpd by 2019,” EIA said.
EIA said in 2013, total oil production in the Philippines was 26,000 bpd, while the country consumed 299,000 bpd, with the rest sourced from imports.
“The Philippines is a net energy importer inspite of low consumption levels relative to its Southeast Asian neighbors. The country produces small volumes of oil, natural gas, and coal. Geothermal, hydropower, and other renewable sources constitute a significant share of electricity generation,” EIA said.
EIA is a US Congress-funded office that collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment.
The DOE launched its latest exploration round in May. Through the current round, the government is eyeing new investors to explore potential coal and petroleum fields around the country.
A regular activity conducted by the department, the Philippine Energy Contracting Round is a transparent and competitive system for awarding service contracts.
The goal is to showcase the petroleum exploration opportunities in the country and to attract energy investors to develop the country’s indigenous oil and gas resources.
In 2011, the DOE launched its 4th PECR covering 15 blocks or an area of approximately 100,339 square kilometers (km). The blocks have an average size of 6,700 square km each, located mostly in the country’s frontier regions.
Investments in these service contracts are huge but the returns are attractive as well, depending on their respective petroleum potential.
Proponents have to embark on seismic studies, which may cost at least $5 million, and exploration well drilling activities amounting to up to $100 million per well.