DOE awarding 8 coal exploration contracts
The Department of Energy is awarding eight local companies with service contracts to explore and develop 11 prospective coal blocks, which were auctioned off in 2011 under the Philippine Energy Contracting Round 4.
Also, the DOE has endorsed to Malacañang the awarding of service contracts to five investor groups for the exploration and development of five blocks—including some contested areas, such as blocks 4 and 5, within the West Philippine Sea, according to Energy Undersecretary Ramon Allan V. Oca.
In a briefing Monday, Oca identified the “winning proponents” for the coal service contracts as Altura Mining for Area 3 (Catanduanes); the Consunji-led Semirara Mining Corp. for Areas 9 (Oriental Mindoro) and 25B (Sarangani); Empire Asia for Area 18B (Surigao del Sur), and SKI Mining for Area 19A (Agusan del Sur and Surigao del Sur).
Set to be awarded with coal service contracts are PNOC Exploration Corp. for Areas 19B (Agusan del Sur and Surigao del Sur), 29 (Zamboanga Sibugay) and 30A (Zamboanga Sibugay); South Davao Development Co. Inc. for Area 8 (Occidental Mindoro); Blackstone Mineral Resources for Area 27 (Zamboanga Sibugay), and Mega Philippines Inc. for Area 23 (covering areas in South Cotabato, Sultan Kudarat and Sarangani).
According to Oca, the contracts are up for signing by Energy Secretary Carlos Jericho Petilla and they will likely be awarded within the next few weeks.
In the meantime, the DOE has also endorsed to Malacañang the awarding of five service contracts to explore and develop prospective oil and gas blocks to Australian firm Planet Gas for Area 1 (Cagayan) and to a consortium composed of listed firms Philex Petroleum Corp., PNOC Exploration Corp. and PetroEnergy Resources Corp. for Area 4 (Northwest Palawan).
According to Oca, the DOE also approved the applications of Pitkin Petroleum and Philodrill Corp. for Area 5 (Northwest Palawan); NorAsian Energy Philippines Inc., the local unit of Australian firm Otto Energy Ltd., for Area 7 (Mindoro Cuyo), and Australian firm Loyz Oil for Area 14 (East Palawan).
Investments in these service contracts may vary depending on their respective petroleum seismic studies, which may cost at least $5 million, and exploration well drilling, which could reach up to $100 million per well.
For coal, the estimated initial expenses for exploration was P1 million per year, Oca said.
Although coal and petroleum exploration in the country continues to attract private sector interest as evident in the number of proposals submitted under PECR 4, the Philippines still has a huge resource potential that remained untapped.
Data from the DOE showed that the Philippines has a potential resource of 8.6 billion barrels of oil equivalent; 3.27 billion barrels of oil; 28.5 trillion cubic feet of gas and 164 million barrels of condensate.
