HK firm to invest $7.2 M on oil search

Hong Kong-based Polyard Petroleum International Co. Ltd. (PPICL) has bagged a new petroleum exploration service contract (SC) under the Philippine Energy Contracting Round (PECR) of the Department of Energy (DOE).

The DOE will award SC 70 to PPICL this week.

Aside from PPICL, the DOE will also award three coal exploration contracts to other exploration firms.

PPICL, which is involved in both upstream and downstream petroleum and natural gas activities, is expected to pour in about $7.2 million for the expected seven-year exploration period.

This adds to a total $464.05 million in projected exploration investment since 2004 from 33 active service contracts.

SC 70 is located in the Central Luzon Basin Block or Area 2. PPICL plans to conduct a seismic survey over the block in order to identify potential sites for drilling at least two wells.

The Philippine government has been encouraging the private sector to participate in its energy independence program that aims to reduce dependence on imported fuels.

Through intensive petroleum exploration, the DOE hopes to find additional reserves to meet domestic demand.

“With the recent awarding of these service contracts and the signing of this contract with PPICL, the DOE expects to fulfill its mission and vision to ensure sustainable, stable, secure, sufficient, accessible and reasonably-priced energy,” Energy Secretary Angelo Reyes said.

The DOE will also award coal service contracts in Bayawan, Negros Oriental and Calatrava, Negros Oriental to Guidance Management Corp. (GMC).

GMC was also recently awarded a geothermal service contract for the Amacan geothermal prospect in Compostela Valley. GMC is likewise a corporate partner of Aragorn Power Energy Corp. in Kalinga.

IL Rey’c Coal Mining and Exploration Corp. (IRCMEC) will also be awarded more than two coal blocks in Danao City, Cebu.

IRCMEC has been a long time traditional coal player in the exploration and development of coal deposit in northern Cebu coal field through a previous coal operating contract with the DOE.

The DOE will also sign the conversion from exploration to development/production stage of coal operating contract (COC) 132 in Balamban-Naga, Cebu. — Donnabelle L. Gatdula