Foreign group to invest $1.2-B in RP oil sector

A foreign oil exploration consortium has expressed keen interest in investing up to $1.2 billion on oil and gas exploration projects in the country, PNOC-Energy Development Corp. (PNOC-EDC) president Sergio Apostol said yesterday.

In an interview, Apostol said a consortium composed of Gulf Resources of the US, Unocal and Marubeni Corp. is poised to enter into a joint venture with PNOC-EDC for various oil and natural gas exploration projects.

"They have committed to infuse $1.2-billion worth of investments this year," he said.

He said PNOC-EDC is sending a team to Los Angeles, California to discuss the details of the possible partnership with these big international oil exploration firms.

He said the group is sending a team to Los Angeles, California to discuss the details of the possible partnership with these big international oil exploration firms.

"It is not only on natural gas but they are also interested on additional development of geothermal. What they want is at least 500 MW, we have that in Mt. Lobi, Burauen in Leyte," he said.

He said the group is likewise setting its sights on their geothermal projects in Southern Leyte. "We also have about 400 MW in this area. We can easily produce 1000 MW. They told us that they would make enough funds available for developments. We will have negotiations on details later," he said.

Apostol said Unocal and Gulf Resources are seriously considering other projects of the state-owned geothermal development firm.

"Aside from Victoria, they are likely to forge joint venture agreements with us on the development of geothermal and natural gas here in this country. They are also eyeing our projects in Mindoro, Morong and other geophysical survey and exploration contracts (GSECs)," he said.

So far, PNOC-EDC, one of the profitable subsidiaries of PNOC, registered more than P800 million in earnings for 2001 due to improved steam and energy sales.

PNOC-EDC, which was established in 1976, deals with exploration and development of geothermal energy sources in the country.

To date, it operates more than nine geothermal steamfields with an aggregate capacity of 1,149 megawatts equivalent to about 60 percent of the country’s total installed geothermal capacity.