PNOC Exploration keen on 5 oil and 4 coal areas

Manila Standard Today
by Alena Mae S. Flores

PNOC Exploration Corp. is looking at bidding for five oil exploration areas and four coal blocks in the government’s latest bidding round.

“We have applied for give five areas for petroleum. We’re looking at service contracts in Palawan and Mindanao. There is an existing study on these areas but we have to follow up,” PNOC chairman Gemeliano Lopez told reporters over the weekend.

Lopez said PNOC Exploration, the exploration unit of state-owned Philippine National Oil Co., might also bid for more coal contracts.

The government launched in June last year 15 oil and gas exploration areas under the 4th Philippine Energy Contracting Round, which is estimated to generate investments of around $500 million for each area, or a total of $7.5 billion.

The petroleum contracting round offers three onshore and 12 offshore blocks with a total area of more than 10 million hectares in northwest Palawan, east Palawan and Sulu Sea basins.

The contracts include includes 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) in northwest Palawan; Area 5 (424,000) also in 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.

The government, meanwhile, expects to generate investments amounting to P2.4 billion from the 30 coal areas offered for exploration, production and development under the coal contracting round.

Each coal contract area is estimated to generate investments of P80 million (P20 million) for the four-year contract period. The development period for a coal area runs up to 20 years.

The coal areas are in Quezon, Camarines Norte, Albay, Sorsogon, Masbate, Occidental Mindoro, Negros Occidental,Cebu City, Agusan del Norte, Agusan del Sur, Surigao del Sur, Compostela Valley, Davao Oriental, Lanao del Sur, Lanao del Norte and Zamboanga Sibugay.

The bidding rounds aim to address the country’s energy supply through the exploration of local indigenous resources.