DOE: $7.5-B investment potential in 15 oil and gas fields offered

Three onshore and 12 offshore oil and gas exploration areas have been presented to prospective investors in the biggest energy contracting round the Department of Energy has launched so far. Energy Secretary Jose Rene Almendras said Thursday at $500 million for each service contract, the total investment potential of the 4th Philippine Energy Contracting Round (PECR 4) is $7.5 billion. The contract areas cover at least 10 million hectares that could hold rich reserves in northwest Palawan, east Palawan and the Sulu Sea. Almendras said the contracts could be awarded by early next year, giving interested investors at least five months to conduct their studies. He added that the PCER 4 is a significant component of the Aquino administration's energy self-sufficiency program. DOE estimates that the country has tapped only about 10 percent of the potential oil and gas reserves in its territory. International energy exploration firms that attended DOE roadshows in Australia and Singapore have expressed interest in tendering bids. DOE Undersecretary Jay Layug earlier revealed that most of the prospective investors are keen on three contract areas in Northwest Palawan where oil and gas have been confirmed. The country's first natural gas field, Malampaya, is in northwest Palawan and has gas reserves estimated at 970 billion cubic, 43.9 million barrels of condensate and 1.9 million barrels of oil. Four cancelled service contracts in the Sulu Sea are among the 15 fields the DOE offered in PECR 4. The 15 PECR 4 service contract zones are:

• Area 1 (544,000 hectares) in Cagayan
• Area 2 (676,000) in Central Luzon
• Area 3 (600,000) in Northwest Palawan
• Area 4 (616,000) Northwest Palawan
• Area 5 (424,000) Northwest Palawan
• Area 6 (840,000) in Mindoro Cuyo
• Area 7 (844,000) in Mindoro Cuyo
• Area 8 (840,000) in East Palawan
• Area 9 (840,000) in East Palawan
• Area 10 (640,000) in East Palawan
• Area 11 (600,000) in Cotabato
• Area 12 (456,000) in Cotabato
• Area 13 (648,000) in East Palawan
• Area 14 (983,900) in East Palawan and
• Area 15 (482,000) in Sulu Sea.

At the launch were officials of Petro Energy Resources Corp., PNOC-Exploration Corp., Pitkin Petroleum and Philodrill Corp. BGP Inc. Also present were representatives of Polyard Petroleum Int’l. Co. Ltd., Shell Philippines Exploration BV, Star Energy, Supply Oilfield Services Inc., and Tap Oil. Ltd. Venturoil Phil. Inc. Palawan Sulu Sea Gas Inc., Galoc Production Inc. Gibeon Integration Systems PTE Ltd. and Great Treasures Alliances Int’l. also attended the launch. Officials of Logistics Marketing Phils. Inc., Nido Petroleum Ltd., Norasian Energy Ltd., Oriental Petroleum & Minerals Corp., Chevron Malampaya Phils. LLC, China Union Global Holdings Ltd., Forum Energy PLC, Basic Energy, and One Asia Oil & Gas Corp. were also at the launch. — ELR/VS, GMA News