MANILA, Philippines - The Department of Energy (DOE) will launch in the first quarter of next year another contracting round for exploration projects, Energy Secretary Carlos Jericho Petilla said.
The DOE will launch the Fifth Philippine Contracting Round (PECR 5), another round of exploration projects aimed to showcase the country’s vast exploration opportunities.
Under the plan, the government would offer new petroleum exploration projects as well as coal blocks.
“We don’t know how many blocks will be offered because we are still trying to inventory it all but our target is to launch PECR 5 in the first quarter of next year,†he said.
An existing service contract off Palawan could be part of the next round if proponents fail to pursue the project, Petilla said.
The energy chief was referring to Service Contract no. 55. BHP Billiton Petroleum, is the operator of SC55 but it has already pulled out from the drilling of the Cinco-1 well.
BHP’s partners Otto Energy and Trans-Asia Oil and Energy Development Corp. have not given the Energy department any word yet on whether or not they would take in a new partner to pursue the project.
“If there is really no interest at all then I will include it in PECR 5,†Petilla said.
Another option is for the consortium to seek an extension.
“Otherwise, if there is no chance for them to drill it, then we might as well cancel the contract,†he said.
In 2011, the Energy department launched its 4th PECR covering fifteen blocks or an area of approximately 100,339 square kilometers (km).
The blocks have an average size of 6,700 square kms each, located mostly in the country’s frontier regions.
Investments in these service contracts are huge but the returns are attractive as well, depending on their respective petroleum potential.
Proponents have to embark on seismic studies, which may cost at least $5 million, and exploration well drilling activities amounting to up to $100 million per well, data from the Energy department showed.