MANILA,Philippines — The Department of Energy (DOE) has opened its doors for applications to develop a nominated exploration area in northeast Palawan.
The DOE-Energy Resource Development Bureau (ERDB) has received counter bids for Nominated Area No. 4 in Northeast Palawan under the Philippine Conventional Energy Contracting Program (PCECP).
“We actively welcome all PCECP applications, as each one has the potential to bring us closer to maximize the exploration, development, and utilization of our indigenous energy resources to help us attain energy security and independence,” Energy Secretary Alfonso Cusi said.
Nominated Area No. 4 was applied for by Repsol Exploracion S.A. (Repsol), and was the only company that submitted the application requirements.
The DOE-ERDB conducted a technical, legal, and financial “completeness check,” which Repsol passed.
Following the completeness check, the ERDB and the technical working group—composed of the DOE’s Legal Services and Financial Services—will further conduct substantive evaluation of Repsol’s proposal within 15 working days.
To help attain energy security, as well as cushion the country from the volatility of global oil price markets, the DOE established the PCECP to help reinvigorate petroleum exploration and development activities in the Philippines.
Under the PCECP, the DOE offered 14 pre-determined areas (PDAs), 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.
The agency started accepting nominations in February last year, while the first batch of PDAs was launched in November 2018.
During the process, the DOE received bids for only four out of 14 PDAs amid challenges in the country’s upstream sector.
These are from Israel-based Ratio Petroleum Ltd. for Area 3 in east Palawan; local firms Esmaulana iGlobal Ventures Inc. and Sulu Sea Energy Resources Development Corp. for Area 6 in Sulu Sea; Philodrill Corp. and PXP Energy Corp. for Area 7 in Sulu Sea and Esmaulana Global Ventures Inc. in Area 10 in Agusan-Davao.
The agency also received nominations for a prospect in east Palawan from Sulu Sea Energy Resources Development Corp., in northwest Palawan from Troika Giant Power Corp., and in Ragay Gulf from Superior (SG) Shipyard Inc.
The DOE will continue offering oil and gas prospects under the PCECP to help reinvigorate the country’s oil and gas exploration sector.
Presently, there are only 23 active Petroleum Service Contracts (PSC) in the country.
Among all PSCs, the Malampaya deep water gas-to-power project is the most successful. As the largest natural gas industrial project in the Philippines, it recovered all costs in four years.