Winners of energy deals known soon

Business World Online

Posted on July 22, 2012 09:38:00 PM

THE ENERGY department expects to announce and award “in 60 days” the winning bids for the first eight areas for oil and gas exploration contracts under the 4th Philippine Energy Contracting Round (PECR 4), senior officials said yesterday.

The government hopes to attract about $7.5 billion in investments from the current oil and gas contracting round. -- BW File Photo

The Energy department is close to finishing evaluation of 16 bids for the first eight areas and may be able to announce results within 60 days, Energy Secretary Jose Rene D. Almendras said in a statement. 

“Hopefully in 60 days, the contracts will be awarded,” Energy Undersecretary Jose M. Layug, Jr. confirmed in a telephone interview yesterday.

The review and evaluation committee submitted its recommendation to Mr. Almendras last week, Mr. Layug said, noting that it did not meet its June 29 target to submit its recommendation since it wanted to more time to thoroughly assess bids received.

However, Mr. Layug clarified that evaluation of the bids is still within the Energy department’s time table.

There will be contracts that will not be awarded due to incomplete documents, Mr. Almendras said.

“The biggest difficulty has been in compliance. A lot of the companies fell short on the submission of documentation so it’s possible we may have to re-offer some of it. All available blocs will be re-offered,” he said.

Mr. Layug said, “Our basis for recommendation is the complete submission of requirements by bidders. The bids have been reviewed by the legal, technical and financial committees of the department... then elevated to the review and evaluation committee for recommendation to the Energy secretary,” Mr. Layug said.

The government is offering a total of 15 oil and gas exploration areas under the current contracting round. The government had said earlier it expects about $7.5 billion in investments from this contracting round.

Bidders included Forum Pacific, Inc.; a consortium of The Philodrill Corp. and Philex Petroleum; MinEnergy Pte. Ltd.; Loyz Oil Pte. Ltd.; the consortium of Mitra Energy Ltd., Kuwait Petroleum Exploration Corp. and Tapoil Ltd.; Helios Mining & Energy Corp.; Dil Moro Energy Corp.; NorAsian Energy Ltd.; Black Swan Energy Ltd.; Frontier Oil Ltd.; Planet Gas Ltd.; Clean Rock Renewable Energy Resources Corp.; and Monte Oro Resources Energy, Inc.

Contracts for remaining areas located in the waters off northwest Palawan will be sold by July 31.

For the coal contracting round, Mr. Layug said the department has begun reviewing submitted proposals to assess if bidders met technical, financial and legal requirements and may be able to endorse the winners to Mr. Almendras in two to three weeks. He said the department offered 38 coal areas and received 39 bids.

Mr. Layug had said the department was approached by several firms that want to conduct seismic surveys in more areas, but declined to name them. -- DOR     source