DOE to wrap up bids for new oil service contracts

MANILA, Philippines - The Department of Energy (DOE) is targeting the completion of the technical review of all bids for new petroleum service contracts within the month.

The development will bring the government a step closer to awarding the service contracts to foreign and local firms, a DOE official said.

“We are proceeding with the technical evaluation. By end of this month, we will finish at least the technical evaluation of all the bids we have received,” DOE Undersecretary Jose Layug Jr. said.

The technical evaluation includes checking the proposed work program of the bidders for the petroleum service areas.

In April, the DOE received 16 bids under the Philippine Energy Contracting Round (PECR) 4 which was launched last year, offering 15 new gas exploration areas nationwide that will require around $7.5 billion in investments.

All seven bidders that were initially disqualified filed motions for reconsideration. Four firms like NorAsian Energy Ltd., a subsidiary of Otto Energy Ltd., and Clean Rock Renewable Energy Resources Corp. were cleared to join the auction for new oil and petroleum projects.

“For those with multiple bids, we are choosing who has a better bid and then it will be for approval of the (DOE) secretary,” Layug said.

For instance, he said there are three bidders each for Areas 1 and 15, Layug said.

Service contracts that were subject to the May 4 bidding were Area 1 (544,000 hectares) in Cagayan; Area 2 (676,000) in Central Luzon; Area 6 (840,000) in Mindoro Cuyo; Area 7 (844,000) in Mindoro Cuyo; Area 8 (840,000) in East Palawan; Area 9 (840,000) in East Palawan; Area 10 (640,000) in East Palawan; Area 11 (600,000) in Cotabato; Area 12 (456,000) in Cotabato; and Area 15 (482,000) in Sulu Sea.

Qualified bidders include listed Forum Pacific Inc., the partnership of Philodrill Corp. and Philex Petroleum, Dil Moro Energy Corp., Min Energy Pty Ltd., Loyz Oil Pte Ltd. of Singapore and Mitra Energy Ltd. of Malaysia.

Bids that failed to clear the initial documentary requirements will be reconsidered if other bids do not meet minimum work requirements of the DOE, Layug said.

“We want to put the premium on those bidders who submitted complete documents at the onset,” Layug said.

Meanwhile, the technical evaluation of offers under the PECR for coal will be completed late next month.

“Coal will be sometime in July because there are lots [of bids]. Remember, we received 69 bids in coal,” Layug said.

The PECR generated 69 bids for 38 blocks of coal projects last March.

Some of the coal blocks are located in Panukalan in Quezon, Rapu-Rapu Island in Albay, Bulalacao in Oriental Mindoro, Calatrava in Negros Occidental, Toledo in Cebu, Inabanga in Bohol, Magsaysay in Misamis Oriental, Bislig in Surigao del Sur, Nabunturan in Compostela Valley and Trento in Agusan del Sur.