By ris C. Gonzales (The Philippine Star) | Updated March 6, 2014 - 12:00am
MANILA, Philippines - The Department of Energy (DOE) will officially launch next month a fresh round of bidding for petroleum and coal exploration contracts, or the so-called Philippine Energy Contracting Round (PECR).
In a circular, the DOE said applicants interested in coal contracts may submit applications starting May 5. The last day of acceptable PECR application is on Sept. 5 and the endorsement of winning applications is set on Nov. 21.
The DOE has yet to announce the timetable for the application for petroleum exploration contracts.
Through this new round, the fifth in a series, the government is eyeing new investors to explore potential coal and petroleum fields around the country.
Earlier, Energy Secretary Carlos Jericho Petilla said the awarding of the contracts is targeted in June. However, there had been delays because the DOE had to verify areas that were up for bidding.
A regular activity conducted by the DOE, PECR is a transparent and competitive system for awarding service contracts.
The goal is to showcase the petroleum exploration opportunities in the country and to attract energy investors to develop the country’s indigenous oil and gas resources.
In 2011, the department launched its 4th PECR covering 15 blocks or an area of approximately 100,339 square kilometers (km).
The blocks have an average size of 6,700 square km each, located mostly in frontier regions.
Investments in these service contracts are huge but the returns are attractive as well, depending on their respective petroleum potential.
Proponents have to embark on seismic studies, which may cost at least $5 million, and exploration well drilling activities amounting to up to $100 million per well.
More importantly, successful exploration could yield new sources of energy for the Philippines, which is still a heavy importer of oil and, thus, dependent on movements in the global crude market. source
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