Basic Energy eyeing four geothermal service deals

business mirror

MONDAY, 23 APRIL 2012 20:53 PAUL ANTHONY A. ISLA / REPORTER

LISTED Basic Energy Corp. is looking at developing a number of geothermal sites in the country.

In a regulatory filing to the Philippine Stock Exchange, Basic said it filed applications for geothermal energy service contracts in four locations classified as frontier areas with the Department of Energy (DOE).

Basic added that it has also sent to DOE letters of intent to develop run-of-river mini hydro areas in Negros Occidental.  The company is focused on business opportunities for the development of alternative fuels and renewable energy, such as hydropower generation, bio-diesel production, biomass to power projects and other areas with good business potential, as it continues to pursue its core business in the oil and gas exploration and development.

In September last year, Basic signed a farm-in agreement with Geoenergy, which allowed the latter to acquire up to 70-percent participating interest in the Mabini geothermal project. This deal entails funding 100 percent of the exploration costs up to the completion of drilling one geothermal exploration well.

Geoenergy said it plans to acquire, explore and develop geothermal energy resources in the Philippines for power generation.

Basic also signed an agreement with Altus Transactional Services to jointly develop business opportunities in renewable energy project.

Under the Memorandum of Understanding, the joint development of renewable energy sources will be implemented by the partners’ respective networks in the international energy business.

In 2010, Basic announced that it has completed the initial assessment of the geothermal resource in its geothermal service contract in Mabini, Batangas.

“Our initial assessments indicate that the area has a good potential for a 20-megawatt power generation that could be developed in a 2- to 3-year period, considering the existence of adequate infrastructure, adjacency to transmission lines and a strong power demand in the area,” Basic said.

Basic Energy is the former Basic Petroleum Corp., which has a long experience and know-how in energy exploration and development, and has participated in almost all the oil discoveries in the country that have been put under production since 1978.

The Philippines is the second largest producer of geothermal power in the world, next to the United States. Among the country's indigenous energy resources, geothermal is the largest source of electricity with an estimated total untapped potential of about 2,600-MW.    article source