MANILA, Philippines - Basic Energy Corp. will pursue three new geothermal power projects in the country in line with its thrust of going into renewable energy production.
In a disclosure, Basic Energy said its applications for three geothermal service contracts (SC) “have passed the legal, technical and financial requirements prescribed by the DOE.”
Specifically, the frontier geothermal areas are located in East Mankayan, Benguet; Mariveles, Bataan; and Iriga, Camarines Sur.
“These projects are in line with the 2012 business thrust of Basic Energy to look into new projects in renewable energy development and production,” the company said.
Basic Energy said the geothermal projects are close to existing SCs of other companies.
The East Mankayan geothermal area is located east of the geothermal block of Pan Pacific Power Philippines Inc. and south of the Bontoc-Sadanga block and Daklan blocks.
For the Mariveles project, Basic Energy said it lies along the West Luzon Volcanic Arc that starts from Mt. Pinatubo in the north and extends south across the Manila Bay to Northeastern Mindoro.
The Iriga project is bounded to the north by the Isarog geothermal block of state-owned Philippine National Oil Co.-Renewables Corp. and to the east by the Tiwi geothermal SC of Aboitiz Power Corp.
“With the company’s compliance with the processing and evaluation requirements of the DOE, the geothermal renewable SCs for the areas shall be executed upon final approval of the DOE,” Basic Energy said.
Basic Energy is into oil and gas exploration through wholly-owned subsidiaries like Basic Diversified Industrial Holdings Inc. and iBasic Inc. It also owns 72.58 percent of Southwest Resources Inc., an oil exploration company.
The company is set to continue exploration projects for its SCs.
Focus areas are SC 53 in offshore Mindoro and SC 47 in onshore Mindoro.
“The company’s cash requirements for the operations of its oil and gas business for the whole year of 2012 is budgeted at about $450,000, which will be adequately funded by its cash and short-term investments,” Basic Energy said.
Basic Energy also has ongoing discussions for the exploration and development of a geothermal project in Mabini, Batangas. Initial assessment of the steam resource in the area is about 20 megawatts.
In December, Basic Energy inked an agreement with Australia’s Energy 2035 Ltd. to jointly explore opportunities to develop renewable energy sources in the Philippines.
Energy 2035 is engaged in the development of renewable energy in Australia, New Zealand and the Asia Pacific region. It aims to be a major supplier of both solid and liquid biomass fuels to European and North Asian markets.
Basic Energy, on the other hand, aims to be a major player in the country’s drive for energy self-sufficiency through clean, efficient and reliable energy sources.