EDC chairman and president Sergio Apostol said they will be paid $1 million for each well. Apostol said they will start drilling the first well within this month.
Last January, EDC secured a contract with Lihir Management Co. to drill at least 16 new geothermal wells in Papua New Guinea. The drilling contract amounted to at a total cost of $4.2 million. EDC has drilled 33 wells for Lihir since 1999, completed under two drilling contracts with a total cost of $12.3 million.
Aside from this, EDC is also eyeing drilling contracts in Indonesia and Australia. The state firm has been aggressively marketing its geothermal and drilling services as part of its expansion and diversification thrusts.
The company has been in the business of geothermal exploration and development for the past 25 years then ventured into power generation in the mid-90s to become a total energy company.
EDC is the only local firm with the equipment and technical expertise capable of carrying out an integrated drilling program.
As this developed, Apostol said the company is raising its projected income this year to P1.4 billion from an earlier target of P1 billion.
He said they were able to record net earnings of P800 million during the first semester of 2002. He expects to earn an additional P600 million for the remainder of the year.
He noted that the EDC’s income for the year should have been higher if not for the recent salary rate adjustments adopted by the company and some loan payments scheduled for the period. – Donnabelle Gatdula