June 30, 2016
from Business Mirror
BASIC Energy Corp. is pursuing two to three renewable-energy projects, including the installation of solar photovoltaic farms, aimed at making the company profitable at the soonest time possible.
“We’re in the negative,” company President Oscar de Venecia Jr. said after the company’s stockholders’ meeting when asked to provide initial assessment on the company’s financial position for the first half of the year.
“We’re looking at projects that could bring immediate impact to the bottom-line of the company. Of course, solar is one. It is also good to have a balance mix.” Basic Energy is into oil-and-gas exploration, geothermal energy and hydropower development.
Its geothermal projects include Mariveles Geothermal Power Project , the East Mankayan Geothermal Power Project, the West Bulusan Geothermal Power Project, Iriga Geothermal Power Project and the Mabini, Batangas, Geothermal Power Project.
For hydro, the company was awarded service contracts for the two-megawatt (MW) Puntial 1, 2-MW Puntian 2, 3-MW Malogo 2 and 2-MW Talabaan hydropower projects. At end-March this year, the listed company posted a net loss of P7.97 million mainly on account of higher expenses.
“For the quarter ending March 31, the company booked total revenues of P4.759 million, with total cost and expenses of P12.728 million, resulting to a net loss of P7.969 million,” Basic Energy reported in May.
Developing solar-power projects takes nearly a year compared to geothermal-power projects which de Venecia said, “takes time.”
The company has identified possible sites for its planned solar-power projects. It is looking at developing solar farms in company-owned properties in San Fabian and Bolinao in Pangasinan, as well as in Labason, Zamboanga del Norte. Based on company data, the potential solar capacity of the three sites could reach as much as 56 MW—27 MW in Bolinao, 15 MW in San Fabian and 14 MW in Labason.
Basic Energy recently forged a partnership with nv vogt Singapore Pte. Ltd. for the development of solar projects in Pangasinan.
If the solar projects push through, this will be the company’s maiden venture into solar-power business. “We now have five service contracts in geothermal. Hopefully, we can bring in two to three service contracts in the future, maybe solar and wind as the next areas of our development as soon as possible,” de Venecia said.
He added that results of feasibility studies for future power projects should be out in the next few months. “The process of applying the service contracts takes time, but we want to speed that up.”
He also said the company is open to forging partnerships with “anyone who wants to come in,” while stressing that the planned projects will push through “with or without any partners.” Basic Energy has programmed a capital expenditure of P150 million this year. De Venecia said the bulk of the amount would be spent to drill a geothermal well in Mabini, Batangas.