PNOC-EDC to develop local tech to drill acidic wells

The PNOC-Energy Development Corp. (EDC) intends to develop a home-grown technology that would enable it to drill acidic wells, a ranking company official said.

EDC president Paul A. Aquino said this kind of technology would open a lot of new geothermal steam fields.

"There are big possibilities and potential for us to harness geothermal steam fields which come from young dead volcanoes,"he said.

Aquino said EDC currently could not develop such potential geothermal sources because of lack of this kind of technology.

According to the EDC chief, they expect to determine if this technology would work by end of next year.

He said they have started conducting preliminary test for this technology in Biliran, North Davao.

EDC’s annual revenue comparison shows an average 10 percent yearly increase in the geothermal firm’s drilling income. In 2002, EDC earned P249.2 million from drilling alone.

Created in 1976, EDC is one of the most profitable subsidiaries of PNOC. It is primarily engaged in the business of developing and operating geothermal energy projects and geothermal power projects in the Philippines.

It currently operates geothermal energy projects in Leyte, Luzon, Negros and Mindanao with a total installed capacity of 1,148 MW.

EDC is the sole active developer of geothermal energy and geothermal power projects in the country and at present accounts for approximately 60 percent of the total installed geothermal energy capacity in the Philippines.

In October 2003, EDC has been given approval by the Department of Energy (DOE) to extend its service contract (SC) for another 25 years in preparation for company’s planned IPO which was originally scheduled to be held in 2003. EDC’s service contract will last until 2008.

Under Republic Act 9136 or Electric Power Industry Reform Act, EDC should offer about 10 percent of its stake to small investors through public offering in the stock market.