The 5th Philippine Energy Contracting Round (PECR) is finally on track for its April launch as the Department of Energy (DOE) finalizes the list of oil/gas and coal exploration areas that will be up for auction.
The Energy department has come up with an initial list and will finalize this before the PECR5 launch next month, Energy Secretary Carlos Jericho Petilla said in a text message.
Petilla identified nine tentative areas for oil and gas, and eleven for coal.
“However, we are still receiving nominations,” he added.
The DOE initially set the deadline for nominations on March 15, but some potential investors suggested other prospective areas they would want to explore.
The list of areas for bidding will be finalized by April 4, Petilla said. The awarding of the bid contracts is set on June 30.
Earlier, the Energy department decided to push back the PECR from March to April this year as it studied the energy blocks fit for contracting.
The PECR is held regularly to boost local energy resources and curb the Philippines’ dependence on fuel imports, Petilla said.
The DOE has noted changes in some of the blocks that are being considered for auction, he added.
The ongoing Service Contract 55 off Palawan, for example, was abandoned by operator BHP Billiton, but was saved by minority partner Otto Energy Ltd. from re-bidding by taking over the operations and seeking a new work program for the project.
The DOE also wants to improve the PECR.
The Energy department has been streamlining bidding rules and offering more assistance to investors to make sure all submitted bids are valid for competitive evaluation, DOE Undersecretary Ramon Allan V. Oca said.
The DOE will hold the equivalent of a pre-bidding conference to clarify all documentary and other requirements before the auction, Oca said. This is to help potential investors prepare for the PECR bidding.
Also, the department is now open to helping foreign companies “consularize” or authenticate their documents to be able to participate in the bidding.
“We want to be clear on the requirements and rules because it would be a waste if any of the bids were disqualified. It would be a more competitive bidding if there are many qualified proposals,” Oca said.