Basic Energy, Altus to develop RE projects

Business Mirror
WEDNESDAY, 21 SEPTEMBER 2011 19:00 PAUL ANTHONY A. ISLA / REPORTER


LISTED Basic Energy Corp. said on Wednesday it entered into an agreement with Altus Transactional Services to jointly develop business opportunities in renewable energy. 
In a disclosure to the Philippine Stock Exchange, Basic said, under the memorandum of understanding, the joint development of renewable energy sources will be done through both companies’ networks in the energy business.


Basic is in the business of providing financial advisory and strategic development services worldwide.


Under the accord, Altus will seek to identify third parties with financial capabilities to invest in mutually identified projects either on equity basis or via project financing. 


Apart from its oil and gas exploration projects, Basic is also into renewable energy development and seeks to expand its portfolio for the exploration and development of geothermal energy resources, hydropower and biomass energy for power generation. 


In 2010, Basic announced it has completed the initial assessment of the geothermal resources in its Mabini, Batangas service contract.


“Our initial assessments indicate that the area has a good potential for a 20-megawatt (MW) power generation facility that could be developed in a two- to three-year period, considering the existence of adequate infrastructure, adjacency to transmission lines and a strong power demand in the area,” Basic said. 


The Geothermal Service Contract (GSC) was awarded to Basic by the Department of Energy (DOE) on  July 10, 2008. 


Basic said the $3.5-million Mabini contract area in Batangas has a 20- to 40-MW target capacity. It will also conduct geological, geochemical and geophysical works that is expected to result in the identification of drilling locations for test wells and bringing steam out for power production.


Basic Energy is the former Basic Petroleum Corp., which has a long experience and know-how in energy exploration and development, and has participated in almost all the oil discoveries in the country that have been put under production since 1978. 


The Philippines is the second-largest producer of geothermal power in the world, next to the United States. Among the country’s indigenous energy resources, geothermal is the largest source of electricity with an estimated total untapped potential of about 2,600 MW.