UK’s Premier Oil eyes more exploration, power contracts

After securing the country’s first oil exploration contract in six years, Premier Oil Philippines B.V. has floated plans to tap other opportunities in the energy sector in the Philippines, including its participation in the first public contracting round (PCR-I) slated in March.

"We are looking at all our opportunities. We never refuse in participating in an area where we can enhance our company’s value," POP advisor Peter Cockcroft said.

He said aside from the PCR-I, they will also explore other onshore or offshore power projects in the Philippines.

"We have been on the look for areas where we can enter and enhance our presence," Cockcroft said.

In August 2003, the Department of Energy (DOE) launched the PCR-I, a new bidding scheme that offers attractive contractual and fiscal perks for exploration projects.

Some 46 new exploration blocks located adjacent to oil discoveries and producing fields will be auctioned on March 2.

"As long as an oil company shows that it is determined and capable of pursuing serious exploration work program in the Philippines, we will give it full support. We believe that the more players we involve, the more likely that we will discover more Malampayas in the future," Energy Secretary Vincent Perez said.

But Cockcroft admitted that POP’s entry into other oil exploration and power projects will have to come later.

"Incremental projects should come after we have some success in the oil regime," he said. "That is why we want to start the drilling and production of our new project in the Philippines and bring it on stream. We have to do it step by step," he added.

The DOE and POP recently signed the first petroleum service contract (SC) in six years. The SC, located in Ragay Gulf and parts of Bondoc Peninsula, is located in a 1.1-million hectare area within the Southeast Luzon basin, one of the frontier sedimentary basins in the country.

The new contract will bring in investments to the country of about $4.6 million to $12.6 million in the exploration stage alone.

Once the commercial viability of the oil field is determined, the production phase will follow. POP’s service contract will then be automatically extended for another 25 years, with a final extension of another 15 years.