DOE prepares to bid out coal development contracts by year-end

BUSINESS MIRROR

WEDNESDAY, 20 JULY 2011 20:22 PAUL ANTHONY A. ISLA / REPORTER

THE Department of Energy (DOE) is currently preparing to launch by year-end another Philippine Energy Contracting Round (Pecr) to bid out the development contracts of potentially coal-rich areas  in the country, Energy Secretary Jose Rene Almendras said on Wednesday.

The Energy secretary told reporters that the Pecr for coal operating contracts came on the heels of ongoing bidding of Pecr-4  for some 15 new oil-and-gas exploration areas in Northwest Palawan, East Palawan and Sulu Sea basins.

“Even before the end of the five month period or before the Pecr-4 closes , we’ll be pushing through with the Pecr for coal,” he said.

Almendras added that the DOE is preparing necessary documents for its next contracting round. “We want to make it a good offering [but] we have a few areas that are clear from opposition,” he added.

Notwithstanding these issues, Almendras remains optimistic that the department could kick-off the Pecr for coal before the end of the year.

Under PECR-4 for oil and gas, the areas offered are: Area 1 (544,000 hectares) in Cagayan; Area 2 (676,000) in Central Luzon; Area 3 (600,000) in Northwest Palawan; Area 4 (616,000) Northwest Palawan; Area 5 (424,000) Northwest Palawan; Area 6 (840,000) in Mindoro Cuyo; Area 7 (844,000) in Mindoro Cuyo; Area 8 (840,000) in East Palawan; Area 9 (840,000) in East Palawan; Area 10 (640,000) in East Palawan; Area 11 (600,000) in Cotabato; Area 12 (456,000) in Cotabato; Area 13 (648,000) in East Palawan; Area 14 (983,900) in East Palawan; and Area 15 (482,000) in Sulu Sea.

PECR-4 forms part of President Aquino’s long-term plans to address the Philippines’ need for oil and gas and reduce dependence on imported oil which provides for transparent and competitive system of tendering onshore and offshore oil and gas blocks for exploration to interested oil and gas companies.

Under this process, the DOE determines the winning bidders based on specific technical, legal and financial criteria. The Chief Executive will then award service contracts pursuant to the mandate of the 1987 Philippine Constitution and Presidential Decree 87, or The Oil Exploration and Development Act of 1972.