Multinational firms seen bidding for oil, gas areas

French multinational Total, Eni S.p.A. of Italy, US firm CalEnergy, GDF Suez of France, Shell Philippines Exploration BV (SPEX), NorAsian Energy Ltd., Australian firm Nido Petroleum Corp. and Malaysia’s Mitra Energy Ltd. are just some of the firms expected to take part in the bidding to explore and develop the country’s oil and gas resources under the Philippine Energy Contracting Round (PECR) 4.

Energy Secretary Jose Rene D. Almendras said Thursday during the membership meeting of the Management Association of the Philippines that only bids for 10 areas will be opened, instead of 12.

Sources said this is because one company had filed a temporary restraining order concerning Areas 13 and 14 in East Palawan that it claims it has exploration rights to.

Meanwhile, Energy Undersecretary Jose M. Layug said that he expects 41 pre-qualified companies to submit their respective bids for the other 10 areas.

He added that the DoE had assured investors that the government will secure the areas for exploration and development.

In June last year, the Department of Energy launched the PECR 4 for petroleum, during which it offered 15 prospective oil and gas blocks located at Cagayan, Central Luzon, Northwest Palawan, Mindoro-Cuyo, East Palawan, Cotabato and the Sulu Sea.

The opening of the bids for three gas blocks is scheduled for later this year to give prospective investors more time to study the areas.

The PECR 4 was envisioned to help the country meet its daily energy demand and reduce the importation of expensive petroleum products.

According to the DoE, it expects at least $7.5 billion worth of initial investments to be infused in the local oil and gas sector over the next several years, should all the 15 contracts offered under PECR be awarded to investors.