DOE set to award 15 new service contracts

MANILA, Philippines - The Department of Energy (DOE) expects to award 15 new service contracts under the Philippine Energy Contracting Round (PECR)4 by the second quarter of 2012.

The DOE has intensified its campaign to find oil and gas reserves within Philippine territory through the PECR4 launched in middle of this year.

Speaking at 16th Oil and Gas Week in Singapore and the New Generation Oil and Gas Summit in Kuala Lumpur, Malaysia, Energy undersecretary Jay Layug said the DOE was able to promote 15 blocks being offered in the PECR4, of which three located onshore and 12 in offshore areas.

With a total area of more than 10 million hectares located in Northwest Palawan, East Palawan, and Sulu Sea basins for all the acreages, PECR4 is a part of the Aquino administration’s long-term plan in addressing the country’s energy demand through the exploration, development and utilization of its indigenous resources.

Layug said PECR4 continue to gather interest as “the Philippines is firm in its resolve to discover and develop oil and gas reserves. We are open for business.”

He reiterated that while issues relating to the West Philippine Sea and non-compliant service contractors whose contracts were cancelled by DOE were raised against PECR4, the Philippines shall aggressively move forward with its exploration program.

After roadshows in Perth, Australia and Singapore, the formal launch of PECR 4 last June 30, 2011 attended by more than 300 participants and the opening of the online data room last July 30, 2011, at least 50 companies interested parties, including Shell of Netherlands, Total of France, ENI of Italy, BHP Billiton and Exxon of US, among others, have this early already expressed interest and have requested access to the DOE data.

“We expect this number to increase as we make more data available for viewing for our contracting round,” Layug added.

For PECR4, interested parties must comply with the DOE requirements, which include the proposed work program and economic development of the proponent.

Prospective investors will also need to submit the financial, legal and technical documentation required for the bid.