PNOC, Israel firm team up for exploration projects

MANILA, Philippines — State-run Philippine National Oil Co. (PNOC) and Israel-based Ratio Petroleum Ltd. are teaming up to pursue possible joint oil and gas exploration projects in the country.

PNOC and Ratio Petroleum have signed a memorandum of understanding (MOU) which seeks to establish cooperation between the two parties for the exploration and development of oil and gas resources in the Philippines.

The MOU signing between PNOC president and CEO Reuben Lista and Ratio Petroleum CEO Itay Raphael Tabibzada was witnessed by Department of Energy (DOE) Secretary Alfonso Cusi.

“The MOU provides for cooperation in the conduct of research and feasibility studies; the exchange of technical information, including coordination to facilitate necessary permits and clearances; and the sharing of technical resources and capabilities for project development,” the DOE said on its Facebook page.

Earlier, Cusi said Ratio Petroleum has expressed its interest in the Philippine oil and gas sector.

Ratio Petroleum is the operator of Service Contract (SC) 76, which was the first contract signed by President Duterte in October last year. It holds 100 percent of the rights in the block.

Their interest is focused on expanding its existing contract and is also looking at another prospect with government through the Philippine Conventional Energy Contracting Program (PCECP).

The DOE has been pushing for oil and gas exploration and development in the country and launched the PCECP in November last year as part of an intensified thrust to develop the petroleum exploration industry for global competitiveness.

The PCECP offers 14 pre-determined areas, and the option for investors to propose their own exploration area, making oil and gas exploration a dynamic investment prospect for players in the energy sector.

Presently, there are only 23 active Petroleum Service Contracts (PSC) in the country, with the Malampaya Deep Water Gas-to-Power Project as the most successful PSC stemming from the previous Philippine Energy Contracting Round.

Operating since 2001, the Malampaya project supplies fuel to around 40 percent of gas-fired plants in Luzon namely the Ilijan, Sta. Rita plant, San Lorenzo, San Gabriel and Avion plants – which supply 3,211 megawatts to the Luzon grid.