MANILA, Philippines - The Philippines generated robust investor interest in several coal and petroleum exploration projects in the country amid contentions from China, an energy official said.
The Department of Energy (DOE) received pre-qualification documents from 38 local and foreign firms said it has for the Philippine Energy Contracting Round (PECR) 4 for oil and gas exploration projects.
For the PECR on coal projects, the department expects around 30 companies to indicate interest, DOE Undersecretary Jose M. Layug Jr. said.
“We have received an overwhelming number of parties who wanted to pre-qualify for PECR on petroleum,” Layug said.
Last July, the DOE launched PECR 4, offering 15 new oil and gas exploration areas nationwide that will require around $7.5 billion in investments.
PECR 4, the biggest offering of the country so far, comprises three onshore and 12 offshore blocks with a total area of more than 10 million hectares mostly located in Northwest Palawan and East Palawan that are in the resource-rich West Philippine Sea (South China Sea) and Sulu Sea basins.
“It is a long-term solution for the challenges in oil prices. The Philippines need to find its own gas sources,” he said.
“That is a good indicator that we have attracted sufficient investor interest,” Layug said.
“Historically, when oil prices are high, that is where you see more exploration done globally,” he added.
Firms that submitted pre-qualification documents include local firms Petroenergy Resources Corp., Nido Petroleum Philippines Pty. Ltd., state-led Philippine National Oil Co.-Exploration Corp. (PNOC-EC) and Pangilinan-led Philex Petroleum Corp. and foreign companies Total E&P Asia Pacific Pte. Ltd., CalEnergy Resources Ltd., Clean Rock Renewable Energy Resources, Esso Exploration International Ltd. and Kuwait Foreign Petroleum Exploration Co.
The DOE held roadshows in Singapore, Australia, the US and Italy.
“Obviously we have attracted overwhelming investor confidence,” Layug said.
The interest was high despite protests from the Chinese embassy against the Philippines’ invite to private firms.
Areas 3 (600,000 hectares) and 4 (616,000 hectares), both in Northwest Palawan that is adjacent to the resource-rich Spratlys Islands, are claimed by China.
The areas are around 80 nautical miles from the Philippine coastline and around 570 nautical miles away from China, Layug said.
Layug said there were no Chinese firms that signified interest in the petroleum exploration projects but such companies might partner with winning bidders.
The Philippine military said it is ready to secure the investors who will explore possible fuel deposits in the two contested offshore areas near the West Philippine Sea.
“It is clear in our mandate that we should protect the people and the state, not only Filipino citizens but also citizens visiting the country,” Armed Forces of the Philippines (AFP) spokesman Col. Arnulfo Burgos Jr. said.
“As far as our mandate is concerned, it is clear that as long as you are within our national territory, we will protect (you),” he added.
Burgos said companies who would explore the area should coordinate with the security forces. – With Alexis Romero