Author Topic: Investors keen on PH upstream oil and gas exploration  (Read 84 times)

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Investors keen on PH upstream oil and gas exploration
« on: July 17, 2019, 09:34:38 AM »
INVESTORS KEEN ON PH UPSTREAM OIL AND GAS EXPLORATION
June 27,2019

https://www.doe.gov.ph/press-releases/investors-keen-ph-upstream-oil-and-gas-exploration

TAGUIG CITY - The Philippine Conventional Energy Contracting Program (PCECP) of the Department of Energy (DOE) continues to garner interest from potential investors.

To date, the DOE has received 21 requests from 11 companies for Area Clearances covering portions of the Sulu Sea, Recto Bank, Palawan, Quezon, Albay, and Mindoro. Of the 21 requests, seven Area Clearances have been issued as of 25 June 2019.

Area Clearances are issued by the DOE to inform interested parties that there is no overlap between the area/s they are looking to explore and other energy projects or restricted areas.

Of the seven companies that have received their Area Clearances, four have submitted their Letters of Intent for DOE approval and subsequent publication as a PCECP-nominated area.

Meanwhile, three companies have published their nominated areas in the Sulu Sea, Northwest Palawan, and Ragay Gulf, and are open to receive challenges from other prospective investors. The 60-day challenge period for the Sulu Sea nomination will end at 11 a.m. of 16 August, the challenge period for the Northwest Palawan nomination will end at 11 a.m. of 19 August, while the challenge period for the Ragay Gulf nomination will end at 11 a.m. of 20 August 2019.

"We need to increase exploration and development activities in the Philippines so that our country can become energy self-sufficient. The DOE is continuously pushing for the success of the PCECP for the effective, responsible and reasonable development of all our indigenous energy resources," Energy Secretary Alfonso G. Cusi said.

Under the PCECP, investors may engage in upstream exploration or development activities in two ways: (1) choosing an area from the 14 Pre-Determined Areas (PDAs) offered by the DOE. The application period for the PDAs will end at 11 a.m. of 19 August 2019, or (2) proposing their own areas for exploration, which begins by requesting for an Area Clearance.

DOE-Energy Resource Development Bureau Supervising Undersecretary Donato D. Marcos stated, “Regardless of their method of application, all interested parties must comply with the legal, financial and technical requirements, which include the proposed work program and economic development plan for the contract area.” He further reminded the interested investors to look into the detailed PCECP application process, which can be found at the DOE website (http://www.doe.gov.ph).