Govt to approve 11 coal deals

Manila Standard Today

By Alena Mae S. Flores Posted on Dec. 18, 2012 at 12:01am

The Energy Department said Monday it expects to approve 11 coal operating contracts this week, but needs more time to study the oil and gas deals.

“We’re done with coal but there about 11 applicants to be awarded. I hope to sign this week if I can [for coal].  However for petroleum, that’s another issue. We need further time on this,” Energy Secretary Jericho Petilla said.

Petilla declined to disclose the names of the coal operating contracts until they were endorsed for the president’s signature.  He said while there were some deficiencies in the coal contracts, they were “correctible”.

Petilla said for petroleum contracts, the department would come up with the final evaluation for submission to Malacañang by January.  The agency waits for all the data to conduct the final review of the petroleum contacts.

“We’re looking at technicalities…like the financial side and environmental, because the actual review actually focuses on this. We have 11 applicants for petroleum.  It shouldn’t take us long to review that,” Petilla said.

Petilla said areas that were not awarded would be rebid.  The government offered 30 areas for coal and 15 areas for oil and gas exploration and development under the Philippine Energy Contracting Round 4.

Four petroleum areas did not receive bids of 15 areas offered to investors.  Area 1 in Cagayan received three bids from Black Swan Resources, Frontier Oil Co. and Planet Gas Ltd. but the three companies failed to fully comply with the requirements of the department.

Area 2 in Central Luzon received a bid from Clean Rock Renewable Energy Resources but it was also rejected for non-compliance with requirements.

Area 7 in Mindoro Cuyo received a bid from NorAsian Energy Philippines Inc., the local unit of Australian firm Otto Energy Ltd. but its bid was also rejected.

Area 10 in East Palawan drew interest from Forum Pacific Inc. whose bid was accepted.

Area 11  in Cotabato received two bids from Forum Pacific and Helios Mining and Energy, which were both accepted.   source