Thursday, August 29, 2019

DOE gets 5 bid offers to explore for oil, gas in 4 identified areas


By Lenie Lectura -

THE Department of Energy on Monday received five bid offers to conduct exploration activities in four of the 14 predetermined areas offered by the DOE.
During the opening of the bid offers for nominated areas under the Philippine Conventional Energy Contracting Program (PCECP), they submitted their proposals to look for oil and gas.
Ratio Petroleum Limited submitted an offer for Area 3 (East Palawan Basi), Sulu Sea Energy Resources Development Corp. and Esmaulana Global  Ventures Co. Inc. for Area 6 (Sulu Sea Basin) and Philodrill Corp. and PXP Energy Corp. for Area 7, (Sulu Sea Basin).
Esmaulana  Global Ventures Co. Inc. also submitted a separate proposal for Area 10 (Agusan-Davao Basin).
The proposals submitted by the five firms for the four areas would be further reviewed by the DOE.
“We have 15 working days to complete evaluation from today. The technical working group will then forward the results of the review to the CREC [Centralized Review and Evaluation Committee] and CREC has a corresponding period to give it to the secretary,” said DOE Assistant Secretary Leonido Pulido.
During the bid opening, some of the bidders submitted incomplete data. Still, the agency accepted the proposals subject to further review. “The CREC will accept the submissions. Please expect formal notice from the committee regarding the completeness of your submission,” Pulido told the bidders, who will receive a notice from the agency within seven to 10 days.
The DOE, according to Pulido, is still “happy” with the turnout of the auction.
“Considering the context of the Philippines, we are currently competing with markets in Africa, competing for investments from the US. The tendency really is, shall we say, invest in areas that are really stable where the risk is less. We do have territorial disputes. In the discussions we had with different agencies around the world, we do recognize the Philippines is not marketable. There is a difficulty, challenge there but we are working on them. Considering these, we’re happy to get a third of the PDAs, we do have nominated areas,” said Pulido.
Under the PCECP, investors may engage in upstream exploration or development activities in two ways: One, choosing an area from the 14 predetermined areas (PDAs) offered by the DOE.
Two, proposing their own areas for exploration, which begins by requesting for an Area Clearance.
Pulido said the remaining 10 PDAs would still be offered to prospective investors.
“We intend to continue marketing them. We are considering opening up the 10 remaining PDAs, to be offered to the public as areas the private sector can nominate. We will essentially transform them into an area subject to nomination,” he said, adding that a department circular would be crafted to make this happen.
For nominated areas, the DOE received offers from Sulu Sea Energy Resources Development Corp., which nominated Sulu Sea Basin; Troika Giant Power Corp., which nominated Northwest Palawan Basin; and Superior Shipywards Inc., which nominated Southeast Luzon Basin.

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