By Danessa O. Rivera – January 12, 2016 – 12:00am
from The Philippine Star
MANILA, Philippines – The Department of Energy (DOE) is seeking the endorsement of the Finance department for oil and gas contracts under the latest Philippine Energy Contracting Round (PECR).
The PECR is a regular activity conducted by the DOE, showcasing petroleum exploration opportunities to attract energy investors and develop the country’s indigenous oil and gas resources.
DOE secretary Zenaida Monsada said the agency received last June 30 four bids for the PECR 5 which were forwarded to the Finance department in the latter part of 2015.
She noted the DOE has been “encountering problems” because the contracts contain international aspects as they tackle international trade agreements.
“What we did was we forwarded it to the DOF so they can look at all the conditions. There is an earlier guideline [that says] DOF endorsement is needed for the contracts,” Monsada said.
“We forwarded it last year so we’re going to ask for a follow up on the contracts since work has started again,” she added.
Following DOF’s endorsement, the final go signal will come from Malacañang,
“It’s up to Malacañang to authorize it,” Monsada said.
The government launched PECR 5 last May with 11 oil and gas blocks up for bidding.
The DOE earlier extended the deadline for submission of applications for this undertaking to June 30 from March 31. Endorsement of winning bidders was also moved to Sept. 4 from June 4.
Proponents of these service contracts will shell out huge investments, which include at least $5 million for seismic studies and up to $100 million for well drilling activities.
However, the return on investments depends on the projects’ respective petroleum potential.