BEC takes in partner for Iriga project

Basic Energy Corp. (BEC) has approved in principle a partnership with Desco Inc. for the development of its Iriga geothermal service contract.

In a disclosure to the Philippine Stock Exchange, BEC said its board of directors had agreed that Desco would be taking up an 80-percent stake in the project.

This will take place after the formal signing of a farm-in agreement and a deed of assignment, as well as the subsequent approval by the Department of Energy (DOE) of such documents.

For and on behalf of the consortium, Desco will undertake a geophysical survey and all other steps required to bring the project to the drilling stage.

The DOE awarded the service contract to BEC on Feb. 26, 2013.

“Desco’s entry following an extensive review underscores its bullishness on the project,” BEC said.

The Iriga geothermal service contract is in the pre-development stage. It is part of plans to develop more fields for electricity production and make use of geothermal water.

The DOE has said it was planning to increase the country’s geothermal capacity by installing another 1.445 megawatts by 2030.

The Iriga, Camarines Sur geothermal area is bounded in the north by the Isarog geothermal block of PNOC-Renewables Corp., a unit of state firm Philippine National Oil Co., and to the east by the highly productive Tiwi Geothermal Service Contract of AP Renewables, Inc. (formerly Chevron).

The areal landscape is dominated by Mount Asog, which is immediately southwest of Lake Buhi in Southern Luzon.

Desco was founded on Dec. 18, 1974. It is engaged mostly in servicing the geothermal, oil and gas industries.

In the early 1990s, Desco embarked on acquiring larger equipment. The company became the first one-stop shop service provider for the geothermal, oil and gas companies in the Philippines.