DOE extends deadline for service contract applications

MANILA, Philippines - The Department of Energy (DOE) has extended the deadline for submission of applications for the current round of bidding for petroleum service contracts.

Energy Secretary Carlos Jericho Petilla said the department has adjusted the last day of acceptance of applications to June 30, 2015 from a previous deadline of March 31, 2015.

The endorsement of winning applicants, meanwhile, has been moved to Sept. 4, 2015 from June 4, 2015 previously.

The move is intended to provide more assistance to prospective energy developers for the Philippine Energy Contracting Round 5 – Petroleum (PECR 5).

“The revision will enable the potential proponents to review and evaluate the additional available marine seismic data acquisition, processing and interpretation in the offered areas. Additional data will be made available on February 2015,” Energy Undersecretary Zenaida Monsada said.

She also said the DOE would continue to ensure the smooth process of the PECR 5 to guarantee the successful bidding of the country’s indigenous resources.

The government launched PECR 5 in May with 11 oil and gas blocks up for grabs.

A regular activity conducted by the DOE the PECR is a transparent and competitive system for awarding service contracts.

The goal is to showcase petroleum exploration opportunities 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, data from the DOE showed.