Phl invites foreign investors for gas exploration

The Philippines has invited foreign investors to explore possible fuel deposits in two offshore areas near the West Philippine Sea (South China Sea) despite a protest from China, which also claims the territory.

Energy Secretary Jose Almendras yesterday said the areas northwest of Palawan island are in Philippine territory and are two of 15 areas nationwide being offered to foreign investors for oil and gas exploration.

The Chinese embassy last year protested the plan to invite foreign companies to explore in the two areas, saying they were part of the South China Sea region that falls under its sovereignty.

Almendras said that the government would start awarding exploration contracts to some companies next month, but did not say whether the permits would include the two areas claimed by China.

Companies are allowed to submit pre-qualification documents until tomorrow.

The Department of Energy (DOE) will let the Department of Foreign Affairs (DFA) deal with diplomatic issues.

“I am sure it will have diplomatic complications, which I am sure the DFA will be able to handle,” Almendras said. “As agreed, the DFA takes the lead in all the diplomatic issues.”

Exploration of Reed Bank, near the contested territory, is still being conducted by Forum Energy Plc, a UK-based oil and gas firm controlled by Pangilinan-led Philex Petroleum Corp.

“The ongoing explorations will continue. The seismic studies have been finished so they are in the evaluation stage,” Almendras said.

Oil subsidies

Meanwhile, the government is looking at handing out more aid to the public transport sector amid continued escalation of oil prices.

Almendras said the government is looking at providing oil subsidies to tricycle drivers.

“There is still a lot of balance in the Malampaya funds. There is still a lot of savings in government also,” Almendras said, when asked about fund sources.

Just last week, a new round of oil price increases greeted consumers following continued geopolitical tensions in the Middle East.

Since the start of the year, there have already been seven oil price increases as against two price reductions. As of Feb. 14, net increase stood at P3.60 per liter for gasoline and P2.15 per liter for diesel, data from the DOE showed.

Almendras said the first batch of Pantawid Pasada Program reloads has been completed. Public utility jeepneys with plate numbers ending in zero have been given P1,200 worth of credits.

The Pantawid Pasada Program, which started in May last year, is a P120-million government program to cushion the impact of high fuel prices on the public transport sector.