Ten exploration contracts have been awarded to foreign and local oil firms to search in waters off central and northern Philippines, the Department of Energy (DoE) said in a statement.
"We have to actively push for energy independence by developing our own resources to mitigate the adverse effects of soaring oil prices," Energy Secretary Raphael Lotilla said.
Economic Planning Secretary Augusto Santos said on Thursday that economic growth would slow while inflation would rise unless international oil prices fell back below $60 per barrel for the rest of the year.
A consortium involving Australia’s BHP Billiton, Amerada Hess Ltd., Unocal Sulu Ltd. and Sandakan Oil II LLC would explore for oil and gas reserves in the Sulu Sea.
The consortium of Alcorn Gold Resources Corp., Trans-Asia Oil and Energy Development Corp. and PetroEnergy Resources Corp. won permission to search the East Visayan basin off the central island of Leyte.
EF Durkee and Associates will drill in the Piat-San Jose area of the Cagayan Valley region near a gas field operated by the government.
India’s Laxmi Organic Industries Ltd. will explore in the Mindoro-Cuyo basin west of Mindoro island. The consortium of Ottoman Energy Ltd., Australasian Energy Ltd. and Trans-Asia Oil and Energy Development Corp. won a contract to explore west of Palawan.
Nido Petroleum Philippines Ltd. was awarded a contract off the western island of Palawan. Petronas Carigali and Philippine National Oil Co-Exploration Corp. will be allowed to drill off Mindoro. Aragorn Power Corp. will explore in the Cagayan basin, Phil-Mal Petroenergy Corp. in the south of Cebu island, and Ottoman Energy Ltd. in northwestern Palawan.
A petroleum assessment conducted with the help of the Norwegian Agency for Development Cooperation showed that the country’s total recoverable petroleum resources could reach about 3.6 billion barrels of oil, 28.5 trillion cubic feet of natural gas and another 165 million barrels of oil per year, the DOE said.
Lotilla said the groups planned to spend about $94 million over the seven-year terms of the exploration contracts.
The Philippines imports about 126 million barrels of condensate, the department said. Oil, nearly all of it imported, accounts for about 39 percent of the country’s total energy consumption.
President Arroyo this week imposed energy conservation measures, including fuel rationing for government agencies, and asked Congress to grant her powers to compel the private sector to adopt similar measures.
Yesterday, she directed the energy and foreign departments to exert all diplomatic efforts to have cheaper fuel and more stable supply arrangements with other countries to avert an oil crisis.
"This is a strategic global problem. We must act globally and act locally," Mrs. Arroyo said.
Foreign Affairs Secretary Alberto Romulo said he would draft a program with Lotilla on how to approach the different countries to ensure a cheap and steady supply for the Philippines.
Romulo said the government could look for other sources of oil like Russia. So far, the country’s main source of oil is Saudi Arabia, which has about one quarter of the world’s oil reserves, he said.
The President also ordered National Security Adviser Norberto Gonzales to come up with various threat scenarios to enable the government and communities to prepare for such eventualities.
"Total focus on energy conversation is needed, away from the arena of destructive politics. Although many detractors want to pull me away from my prime responsibility and force greater suffering among the people," Mrs. Arroyo said.
Low threat scenarios involve minor street protests while medium threats may include massive rallies with a single bomb blast like the Plaza Miranda bombing in 1971. High threats and worst-case scenarios involve attacks with massive casualties and effective disruption of facilities such as power and electricity and water utilities.
Senior Superintendent Romeo Hilomen, deputy chief of the Philippine National Police’s Security Protection Office, said the safety of the people is the main priority of police authorities.
"Security cannot be compromised... Energy conservation does not affect security measures to foreign embassies," Hilomen added. — AFP, Aurea Calica, Paolo Romero, Cecille Suerte Felipe