http://www.bworldonline.com/content.php?section=Corporate&title=basic-energy-seeks-to-develop-more-solar-farms&id=129777
BASIC ENERGY Corp. is looking to
develop three of its properties into solar farms that can bring “immediate
impact” on the bottom line, its president said.
“The
target right now is we want... as soon as possible to bring in some renewable
energy projects that can bring in important short-term revenue to the company,”
Oscar L. de Venecia, Jr., Basic Energy president and chief executive officer,
told reporters on the sidelines of Basic Energy’s annual stockholders’ meeting
at the Manila Golf and Country Club on Wednesday.
He said the company’s current projects have long-term gestation periods, which is why it is looking at new projects that can have an immediate impact on its bottom line.
“If you’re doing that, then you’re looking at solar as the quickest from shovel to operations,” he said.
Mr. de Venecia said the company had partnered with nv vogt Philippines to look at the potential of Basic Energy’s 178,634-square meter (sq.m.) property in San Fabian, Pangasinan for a solar energy project.
Based on the company’s estimate, the size of the property can accommodate a solar facility that could deliver peak power of 15 megawatts (MW).
He said project was at a preliminary stage covering “the normal procedures for determining whether the land is capable of handling a solar project.”
“We’re also talking with the concerned agencies on how we should go about it,” he said.
Basic Energy also has 415,895 sq.m. in Bolinao, Pangasinan with an estimated potential of 27 MW, and a third property in Labason, Zamboanga del Norte with a potential capacity of 14 MW.
Mr. de Venecia clarified that the renewable energy projects were not yet included in the company’s earmarked capital expenditure (capex) for 2016, which had been fully funded.
“We’re expecting to spend around P150 million this year. The bulk of it is going towards the drilling that we are doing in Mabini for our geothermal service contract,” he said.
Last year, the company’s capex was around P100 million.
“It’s slightly lower because the previous years we were doing capital expenditures on our drilling in Indonesia. But because of the [oil prices in the] world market, we stopped temporarily those operations and we’re concentrating on geothermal,” he said.
Basic Energy’s potential venture into solar energy comes amid the continuous drilling in its geothermal project in Mabini, Batangas. The company has drilled a depth of more than 100 meters, although Mr. de Venecia said this was still far from the target 2,200 meters.
The operator of the service contract, Basic Energy has a 75% stake in the project. The rest is held by Trans-Asia Oil and Energy Development Corp.
Basic Energy has been awarded other geothermal service contracts in various parts of the Philippines, namely in Mariveles in Bataan; East Mankayan in Benguet, Mountain Province and Ifugao; Iriga in Camarines Sur; and west Bulusan in Sorsogon.
“Iriga has been farmed out. We have a partner that has come in -- Desco, Inc. They have taken 80% of the service contract. Basic will remain 20%,” he said, adding that the bulk of the work will be done by the new partner.
“With the costs involved in doing geothermal projects... we’re open to discussion with other companies who would want to come in,” he said.
Shares in Basic Energy on Thursday closed unchanged at P0.229 each.
He said the company’s current projects have long-term gestation periods, which is why it is looking at new projects that can have an immediate impact on its bottom line.
“If you’re doing that, then you’re looking at solar as the quickest from shovel to operations,” he said.
Mr. de Venecia said the company had partnered with nv vogt Philippines to look at the potential of Basic Energy’s 178,634-square meter (sq.m.) property in San Fabian, Pangasinan for a solar energy project.
Based on the company’s estimate, the size of the property can accommodate a solar facility that could deliver peak power of 15 megawatts (MW).
He said project was at a preliminary stage covering “the normal procedures for determining whether the land is capable of handling a solar project.”
“We’re also talking with the concerned agencies on how we should go about it,” he said.
Basic Energy also has 415,895 sq.m. in Bolinao, Pangasinan with an estimated potential of 27 MW, and a third property in Labason, Zamboanga del Norte with a potential capacity of 14 MW.
Mr. de Venecia clarified that the renewable energy projects were not yet included in the company’s earmarked capital expenditure (capex) for 2016, which had been fully funded.
“We’re expecting to spend around P150 million this year. The bulk of it is going towards the drilling that we are doing in Mabini for our geothermal service contract,” he said.
Last year, the company’s capex was around P100 million.
“It’s slightly lower because the previous years we were doing capital expenditures on our drilling in Indonesia. But because of the [oil prices in the] world market, we stopped temporarily those operations and we’re concentrating on geothermal,” he said.
Basic Energy’s potential venture into solar energy comes amid the continuous drilling in its geothermal project in Mabini, Batangas. The company has drilled a depth of more than 100 meters, although Mr. de Venecia said this was still far from the target 2,200 meters.
The operator of the service contract, Basic Energy has a 75% stake in the project. The rest is held by Trans-Asia Oil and Energy Development Corp.
Basic Energy has been awarded other geothermal service contracts in various parts of the Philippines, namely in Mariveles in Bataan; East Mankayan in Benguet, Mountain Province and Ifugao; Iriga in Camarines Sur; and west Bulusan in Sorsogon.
“Iriga has been farmed out. We have a partner that has come in -- Desco, Inc. They have taken 80% of the service contract. Basic will remain 20%,” he said, adding that the bulk of the work will be done by the new partner.
“With the costs involved in doing geothermal projects... we’re open to discussion with other companies who would want to come in,” he said.
Shares in Basic Energy on Thursday closed unchanged at P0.229 each.
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