The Japan Petroleum Exploration Co. Ltd. (Japex) signed recently geophysical survey exploration contract (GSEC) 102 with the energy department, which means it can now start exploration activities in the Tanon Strait, Negros Occidental offshore area covering 328,000 hectares.
Earlier, the country signed an accord with its Southeast Asian neighbors to develop the $6-billion Trans-ASEAN gas pipeline.
"The entry of another foreign firm, this time a Japanese company has indeed boosted our upstream exploration initiatives," Energy Secretary Vincent S. Perez Jr. said. "This only proves the great potential of the Philippines as an investment site in the oil and gas sectors."
Perez indicated that energy officials are now laying down a strategy for further promotional campaigns to market the country as the new upstream petroleum investment destination in the region.
"We anticipate more foreign investors to come in and increase the amount of oil and gas exploration activities in the country."
GSEC 102 is the second foreign exploration project under the Arroyo administration. It covers a survey program including slick mapping, geological survey and sampling analysis, and reprocessing and interpretation of a minimum of 740-line kilometers of seismic data.
Japex has 18 months to conduct the geophysical survey programs at a projected cost of over P10 million and an automatic extension of another 18 months should the Japanese exploration firm pursue to drill an exploratory option well at a project cost of P150 million.
Last week, energy ministers from ASEAN countries including the Philippines assembled in Bali, Indonesia and signed the much-delayed $6-billion Trans-ASEAN gas pipeline.
The pipeline will link supply to demand centers in Malaysia, Singapore, Indonesia, the Philippines, Myanmar, Vietnam and Thailand. Indonesia has already started the southern pipeline portion, which will supply natural gas to West Namura to Singapore and Malaysia by August.
Another leg is being constructed from South Sumatra to Singapore while another leg linking Indonesia and Thailand is in the drawing board.
The Malampaya natural gas fields make the Philippines a major player in the Trans-ASEAN gas pipeline in the areas of supplier, distributor, transshipment or storage.
The significance of the accord brings to fore the ability of the ASEAN nations to reduce its dependence on imported fossil fuel while discovering, developing and utilizing environment-friendly energy sources like geothermal and natural gas.