PNOC-EC keen on Palawan, Mindanao coal and oil prospects

BUSINESS MIRROR
SUNDAY, 08 JANUARY 2012 17:56 LENIE LECTURA / REPORTER


PNOC Exploration Corp. (PNOC-EC) expects to participate in exploration activities in Palawan and Mindanao, a top executive said last week.


“We have applied for five areas for petroleum. We’re looking at service contracts in Palawan and Mindanao. There is an existing study on these areas but we have to follow up,” Chairman Gemiliano Lopez Jr. said.


The oil and gas exploration arm of PNOC is looking at bidding for five areas offered under the government’s petroleum contracting round and four areas in the coal contracting round, Lopez stressed.


In June, the government identified 15 oil and gas exploration areas under the Fourth Philippine Energy Contracting Round which is estimated to generate investments of around $500 million for each area, with a total of $7.5 billion.


The petroleum contracting round offers three onshore and 12 offshore blocks with a total area of more than 10 million hectares in Northwest Palawan, East Palawan, and Sulu Sea. 


Areas on offer include: Area 1 (544,000 hectares) in Cagayan; Area 2 (676,000 hectares) in Central Luzon; Area 3 (600,000 hectares) in Northwest Palawan; Area 4 (616,000 hectares) Northwest Palawan; Area 5 (424,000 hectares) Northwest Palawan; Area 6 (840,000 hectares) in Mindoro Cuyo; Area 7 (844,000 hectares) in Mindoro Cuyo; Area 8 (840,000 hectares) in East Palawan; Area 9 (840,000 hectares) in East Palawan; Area 10 (640,000 hectares) in East Palawan; Area 11 (600,000 hectares) in Cotabato; Area 12 (456,000 hectares) in Cotabato; Area 13 (648,000 hectares) in East Palawan; Area 14 (983,900 hectares) in East Palawan and Area 15 (482,000 hectares) in Sulu Sea.


The government also expects to generate investments amounting to P2.4 billion from the 30 areas offered for exploration, production and development under the coal contracting round.


Each coal contract area is estimated to generate investments worth P80 million for the four-year contract period. The development period for a coal area runs up to 20 years.


The coal areas are in Quezon, Camarines Norte, Albay, Sorsogon, Masbate, Occidental Mindoro, Negros Occidental,Cebu City, Agusan del Norte, Agusan del Sur, Surigao del Sur, Compostela Valley, Davao Oriental, Lanao del Sur, Lanao del Norte, Zamboanga Sibugay, among others.