Basic Energy eyes 3 new contracts
Publicly listed Basic Energy Corp. expects to soon secure three service contracts to explore and develop frontier geothermal concession areas, after meeting the requirements prescribed by the Department of Energy (DoE).
In a disclosure to the Philippine Stock Exchange on Thursday, Basic Energy said it received a letter last month from the DoE, which said that the company’s applications for geothermal renewable energy service contracts covering blocks in East Mankayan, Benguet; Mariveles, Bataan; and Iriga City, Camarines Sur, had passed the legal, technical and financial requirements.
“With the company’s compliance with the processing and evaluation requirements of the DOE, the geothermal renewable service contracts for the geothermal areas shall be executed upon final approval of the DOE,” Basic Energy said.
The East Mankayan geothermal area covers Benguet, Mt. Province and Ifugao. It lies immediately east of the Cervantes, Ilocos Sur geothermal block of Pan Pacific Power Phils. Inc., south of the Bontoc-Sadanga block, which is operated by Magma Energy Resources and immediately south of the Daklan block operated by Clean Rock Energy.
The Mariveles, Bataan, geothermal area is on the West Luzon Volcanic Arc, which starts from Mt. Pinatubo in the north and extends south across the Manila Bay toward Batangas and northeastern Mindoro.
Meanwhile, the Iriga geothermal area is surrounded by the Isarog geothermal block of PNOC-RC and the productive Tiwi geothermal service contract area of the Aboitiz-led AP Renewables Inc.
According to Basic Energy, these three geothermal projects are in line with the company’s thrust this year to look into new projects in renewable energy development and production.
The company also has a planned 20-megawatt Mabini geothermal power project in Batangas.
While continuing discussions with other companies for a potential joint venture, Basic Energy has been undertaking exploratory works within the site to fulfill its obligations under its geothermal service contract.
Once the proposed geothermal power facility is operational, Basic Energy plans to sell the generated power to the electric cooperatives and the wholesale electricity spot market (WESM).
