MANILA, Philippines — The Department of Energy (DOE) is bullish that the renewed and strong investor interest in the upstream oil and gas sector will continue as it assured players of sustained stability of legal framework and a level playing field.
“On the upstream oil and gas sector, I am pleased to note that the government’s commitment to preserve and maintain the investment incentives for service contractors under Presidential Decree 87 has been met with renewed confidence and strong interest by local and foreign investors in the oil and gas sector,” Energy Secretary Raphael Lotilla said yesterday.
“I am confident that this trend will continue as we reaffirm to prospective investors the openness of our economy to foreign and local investors and assure them of the continued stability of our legal framework, especially in the upstream oil and gas sector,” he said.
The DOE in October gave the green light to Nido Petroleum Philippines Pty. Ltd. to proceed with the site survey of its drilling locations in the Palawan basin by the last quarter of the year.
The site survey is expected to pave the way for the drilling of two wells, one exploration and one appraisal, in Service Contract (SC) 6B by the first half of next year.
The appraisal well for the Cadlao oil field in SC 6B may lead to early oil production toward the second half of 2023.
The recoverable volumes expected from the oil field are estimated at five to six million barrels of oil.
Lotilla said the DOE had also approved the sale of Shell’s 45 percent interest in the Malampaya Service Contract 38 to Prime Infrastructure Capital Inc. after a thorough review in accordance with PD 87.
He said the new entrant is committed to maximize the utilization of the remaining natural gas in the Malampaya-Camago reservoir to develop the nearby gas fields.
“The President’s marching order for us at DOE and our partner agencies in the government is to ensure a level playing field,” Lotilla said.
“With these developments, we encourage investors to join us in steering the energy industry toward a cleaner, greener, reliable, and more sustainable future,” he said.
Meanwhile, Lotilla said the recent opening of the renewable energy sector to 100 percent foreign ownership paves the way for the entry of more investments in the development and implementation of offshore wind energy projects, which has a potential of 178 gigawatts.
“We have also rolled out the Energy Virtual One-Stop Shop (EVOSS) to allow online submission of applications in DOE initially for renewable energy and power projects. We are working non-stop with other concerned agencies/entities to fully provide a one-stop shop in the energy sector,” he said.