posted April 21, 2020 at 09:20 pm by Alena
Mae S. Flores
Investors
have offered to develop three areas in the West Philippine Sea under the
Philippine Conventional Energy Contracting Program, according to the Energy
Department.
The
department sought counter proposals on the three areas that include Area 6
(1.432 million hectares), Area 7 (1.5 million hectares) and Area 8 (1.412
hectares) which are located within the West Philippine Sea.
“Interested
counter-proponents [challengers] may likewise submit their application for the
said nominated area in accordance with, and subject to the procedures and
timelines stipulated under Department Circular DC 2017-12-0017,” the department
said.
The
department said challengers should submit complete application documents to the
DOE Records Management Division, and pay the corresponding application
(challenge) fee of P1 million.
Challengers
are advised to submit the documents to the DOE Treasury Division on or before
May 5 for Area 6 and May 8 for Area 7 and Area 8.
The
department said the opening of the documents would be held at the DOE
Audio-Visual Room (AVR) on the same day of submission deadline.
Under the
PCECP, the awarding of service contracts are conducted either through the
competitive selection process or via nomination.
For the
nomination process, interested companies may submit their letter of intent for
the proposed area for nomination. The agency will then notify the proponents to
publish their nomination which will be subject to challenge within 60 days from
publication.
“We
actively welcome all PCECP applications, as each one has the potential to bring
us closer to desire to maximize the exploration, development, and utilization
of our indigenous energy resources to help us attain energy security and
independence,” Energy Secretary Alfonso Cusi said earlier.
PCECP is
a transparent petroleum service contract awarding mechanism that allows the
government to develop and utilize indigenous petroleum resources under a
service contract with qualified local and international exploration companies.
The department
is pushing to reinvigorate petroleum exploration and development activities in
the country to serve as a cushioning measure against the volatility of oil
prices, which has a direct impact on the costs of transport and power.
“We
cannot be at the mercy of global energy market volatilities and other
geopolitical movements. In this light, we launched the Philippine Energy
Contracting Program... to facilitate the exploration and development of our
indigenous energy resources, and revitalize our upstream oil and gas sector,”
Cusi said.
There are
around 20 active petroleum service contracts in the Philippines with Shell
Philippines Exploration, Total E&P, PNOC-EC, Nido Petroleum, Philodrill,
PXP Energy and Galoc Production Company among the DOE operator-partners.
The
Malampaya deep water gas-to-power project is the country’s the largest and most
successful natural gas industrial project.
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