By Danessa Rivera (The
Philippine Star) | Updated December 2, 2016 - 12:00am
MANILA, Philippines - The Department
of Energy (DOE) has given its go-signal for Basic Energy Corp. and Desco Inc.
to team up for a geothermal project in Camarines Sur.
In a disclosure to the Philippine
Stock Exchange, Basic Energy said it has received the DOE approval on the
farm-in agreement and deed of assignment with Desco.
Basic Energy and Desco have forged a
partnership in December 2015.
The partnership calls for Desco
acquiring an 80 percent participating interest in the rights, interest,
privileges, duties and obligations of Basic Energy in the Iriga Geothermal
Service Contract (GSC) in Camarines Sur.
With the approval of the farm-in
agreement, Desco will become the operator of the project and reduce Basic
Energy’s share in the exploration costs to 20 percent.
“Furthermore, with the approval of
the assignment to Desco, the consortium Desco and Basic will now be able
jointly to meet the work program commitment submitted with the Department of
Energy based on the agreed participating interests,” Basic Energy said.
Under the farm-in agreement and deed
of assignment, Desco shall bear 100 percent of the expenditure for the
geophysical survey and all other activities required to bring the Iriga GSC to
drilling.
The cost for the drilling of the
first well will be 100 percent covered by Desco.
For the succeeding wells, the
construction and production facility costs will be covered by both Basic Energy
and Desco based on their participating interest in the project.
The DOE awarded the service contract
to Basic Energy for the Iriga project on Feb. 26, 2013.
The Iriga, Camarines Sur geothermal
area is bounded in the north by the Isarog geothermal block of PNOC-RC and to
the east by the highly productive Tiwi Geothermal Service Contract of AP
Renewables Inc.
It is dominated by Mount Asog, a
strato-volcano immediately southwest of Lake Buhi in Southern Luzon.
Apart from the Camarines Sur
project, Basic Energy has two more geothermal projects located in East
Mankayan, Benguet and Mariveles, Bataan.
Basic Energy is into oil and gas
exploration through wholly-owned subsidiaries Basic Diversified Industrial
Holdings Inc. and iBasic Inc. It also owns 72.58 percent of Southwest Resources
Inc., an oil exploration company.
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