DOE prepares for coal contracting round

MANILA, Philippines - After the successful launch of the fourth Public Energy Contracting Round (PECR) for oil and gas, the Department of Energy (DOE) is now preparing for another bidding round, this time for coal contracts, the country’s top energy official said.

Energy Secretary Jose Rene Almendras said they would be holding the PECR 5 for coal contracts to even coincide with the PECR 4 for oil and gas contracts.

“I think coal is next, even before the end of the five-month period and even before the PECR 4 closes – we’ll be pushing through with coal,” he said.

Almendras said they are now in the process of preparing documents for the next round of public contracting round.

“We want to make it a good offering, we have a few areas that are clear from opposition,” he said.

Despite concerns on some areas, he said they are optimistic they could begin the contracting round for coal areas this year.

“But definitely within the year. I want to have more areas clear from opposition for the development to push through. We have COCs (coal operating contracts) that have not moved and it’s not the fault of the developer – the developer could not proceed with the development because of issues within their areas. We will make the announcement, but we’re gunning for an offering round for coal before the end of the year,” he said.

In 2003, the DOE launched PECR 1 wherein exploration blocks near oil-producing areas in northwest Palawan and in vast frontier basins in southwest and east Palawan, Sulu Sea and Reed Bank were offered to investors.

Continuing the grains of PECR 1, in August 2005, the DOE conducted PECR 2 wherein it offered investors opportunities for exploration and development not only of petroleum resources but also exploration and development of coal and geothermal resources.

Since 2005, the DOE has engaged in public contracting rounds to make the bidding of energy contracts more transparent. When the PECR was introduced no more service contracts were awarded without passing through this process.

So far, 13 petroleum services contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts worth well over P1 billion in investments were awarded under the PECR.

Over a hundred renewable energy service contracts were also signed by the DOE the past few months.