DOE wants serious investors to take over projects
MANILA, Philippines—The Department of Energy is set to cancel a number of nonperforming and noncompliant petroleum and renewable energy service contracts so these can be awarded to the “more serious” investors.
Energy Secretary Jose Rene D. Almendras explained that there were at least three petroleum service contracts that would be canceled, along with some other renewable energy contracts, which he declined to identify.
“If you had been awarded a contract, there should be a work program, there should be a submission of documents. So right now, we are still going through the process of checking,” he said.
According to Almendras, the project proponents failed to submit the necessary documents and comply with the work program submitted to the DOE.
The energy chief explained that overall, there was a two-year deadline during which the investors should have already completed part of the requirements.
“If after two years nothing has happened, that would mean an automatic cancellation. So this is more of a legal process that we have to follow. That’s why also I cannot give you details because we have to follow the process,” Almendras said.
He did not give further details, adding that the DOE would make the official announcements as soon as all the legal procedures have been completed.
The three petroleum service contracts that will be canceled may soon be offered to other prospective investors during the Philippine Energy Contracting Round (PECR), which may be conducted within the third week of December.
The DOE plans to offer a total of 15 prospective oil- and gas-rich sites spanning 7.92 million hectares in Cagayan, Central Luzon, Northwest Palawan, Mindoro-Cuyo basin, East Palawan and Cotabato. These areas, Almendras said, have already been pre-tested, while some even have had seismic evaluations.
For coal, the DOE will be offering three areas, namely Argao, Cebu; Bislig, Surigao del Sur, and Siocon, Zamboanga del Norte.
Over the next 20 years, the government is hoping to generate as much as P544 billion in new investments for the exploration, development of and production from the country’s fossil fuel resources alone.
The Philippines is estimated to hold petroleum resource of 8.9 trillion barrels of oil equivalent. More specifically, the country is deemed to hold 28.53 trillion cubic feet of gas and 3.6 trillion barrels of oil.
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