Published
By Myrna M. Velasco
A “Swiss challenge” or
third party matching of tenders is being proposed on the modified contracting
round that the Department of Energy (DOE) is enforcing for the upstream segment
of the petroleum industry via the Philippine Conventional Energy Contracting
Program (PCECP).
Given this propounded
system of service contract awarding, former Philippine National Oil Company
(PNOC) President Eduardo V. Manalac who joined a panel discussion on the future
of the gas sector along with some energy officials, has noted that “the
government must consider at least a Swiss challenge so it will have a gauge if
it is getting the best offer.”
The precursor
Philippine Energy Contracting Round (PECR), which was conceptualized during
Manalac’s term at the state-run firm, had been notably anchored on goals of
cornering the “best offer” for any of the petroleum blocks being awarded to
private sector for exploration and prospective commercial development.
Swiss challenge is a
process wherein the government or any authorized public authority receiving an
unsolicited bid or offer, shall be inviting third parties to match or even
exceed the submitted tender.
Lawyer Rino D. Abad,
director of the DOE’s Oil Industry Management Bureau, has asserted that they
will consider such proposal, chiefly in the crafting of the “application
guidelines” of the newly designed petroleum contracting round.
As explained by DOE
Undersecretary Felix William Fuentebella, the PCECP “will implement an
expeditious all-year-round awarding process which will adopt a nomination-based
contracting or licensing scheme with milestone work commitments.”
As to the timeline on
when the Philippine petroleum blocks will finally be opened for business, the
energy department is also “uncertain” at this stage as it has two major issues
yet to resolve on this sphere – the lifting of moratorium on the drilling and
exploration within the so-called “conflict areas” in the West Philippine Sea;
as well as the tax issue relating to the Malampaya case.
The same modified
contracting strategy, according to Fuentebella, shall be upheld in the
indigenous coal sector.
“Similar to the oil and
gas sector, the PCECP for coal will also be conducted as soon as the Department
Circular for the awarding of coal contracts will be issued,” the energy
official said.
For petroleum, he noted
that the country has 16 sedimentary basins straddling a total area of 709,000
square kilometers and with potential to yield 4,777 million barrels of fuel oil
equivalent.
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