The Department of Energy (DoE) expects to complete by the end of this month technical evaluations for the 13 bid offers of local and foreign exploration firms, which are currently vying for contracts to explore and develop the country’s oil and gas resources.
Energy Undersecretary Jose M. Layug Jr. said that once completed, the group will be able to make its recommendations to the energy secretary as to which party or company should be awarded a petroleum service contract.
According to Layug, the 13 offers being processed now included the nine submissions that were accepted during the opening of the bids last April, and the four other offers, which were initially rejected by the DoE but later reconsidered.
The move to fast-track the processing of the bid offers, which were opened only last April, was meant to hasten the development of local indigenous resources, cut costly oil imports and help ensure the country’s energy security over the long term.
The last time that the DoE had awarded a petroleum service contract was in April 2009, to UK-based Pitkin Petroleum Ltd. and South China Resources Inc., for Service Contract 71, which covered 1.16 million hectares within the Mindoro-Cuyo basin.
Layug remained hopeful that the DoE would receive more offers from big foreign exploration players when the Philippine government auctions off Areas 3,4 and 5, all located within northwest Palawan, by end-July.
The northwest Palawan basin is reportedly one of the most prolific oil and gas basins in the Philippines and is home to the country’s most successful natural gas project, the $4.5-billion Malampaya gas field.
Currently, production within this basin alone had reached roughly 58 million barrels of oil, 800 billion cubic feet of gas and 40 million barrels of condensate.
It is estimated that the basin has further resource potential of 400 million barrels of oil and 2.200 trillion cubic feet of gas.