DOE opens contracting round for coal exploration

MANILA, Philippines – The Department of Energy (DOE) has opened the Philippine Energy Contracting Round (PECR) 2009 for coal exploration to prospective investors.

The DOE said a total of 30 areas or coal block systems are being offered for this year’s contracting round, which ends on June 8. 

Under the PECR, winning bidders will be awarded contracts to explore and develop the country’s coal resources.

Energy Secretary Angelo T. Reyes said he welcomes energy exploration companies to take part in the coal contract system.

Reyes also assured the prospective bidders of “a thorough process of resource evaluation to yield high exploration success that is in line with our shared goal of efficient development and production of the coal areas.” 

“Ultimately, we hope that these areas will increase local production of coal to serve the country’s increasing energy demand,” he added. 

The DOE has also issued new guidelines for companies interested to participate in the bidding. 

The guidelines specify the minimum legal, technical and financial requirements for companies applying under the coal operating contract system. 

The DOE said the companies are required to submit a proposal which includes a work program, financial, technical and legal documentation. 

Reyes said the DOE Contracts Negotiating Panel will evaluate the applications based on a company’s resource exploration strategy, utilization and production approach, evidence of available funds and financial track record, technical resources and validity of legal documents.  

“We are looking for companies who have vast experience and technical expertise in the exploration, evaluation, field development and utilization of coal deposits and must have the financial capability and necessary risk capital to explore and develop coal resources in the country,” he said. 

The DOE is offering coal areas in Quezon, Negros Occidental, Cebu, Surigao del Norte, Surigao del Sur, Agusan del Sur, Davao Oriental and Zamboanga Sibugay.

It was only last year that the DOE awarded four COCs covered under PECR 2006.

Those that bagged the coal contracts were IL Rey’c Coal Mining and Exploration Corp. in Danao City City, Cebu (COC 149), Guidance Management Corp. for coal areas in Negros Oriental (COC 150 and 151) and COC 152 to PNOC-Exploration Corp. and Agusan Petroleum and Mining Corp. for Siay, Zamboanga Sibugay.

The DOE, under the PECR, also opened nine contract areas in East Palawan, Mindoro-Cuyo, Cagayan, Central Luzon, Visayas and Agusan-Davao for petroleum exploration.

The DOE said it believes the PECR scheme would help the country achieve energy independence.