THE Department of Energy (DOE) expects over P87 million in potential revenues from the Philippine Conventional Energy Contracting Program (PCECP).
The PCECP is a new and 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.
Awarding of service contracts is conducted either through the competitive selection process or via nomination.
The agency has received five applications to conduct exploration works at four pre-determined areas (PDAs) in East Palawan, Cotabato basin and two within Sulu Sea Basin. The potential revenue that the DOE could generate could amount to P26,748,561.00.
For nominated areas, revenues could amount to P60,984,000.00. The agency has received applications from the private sector to pursue oil and gas exploration activities within Sulu Sea Basin, Northwest Palawan basin, Southwest Luzon basin, East Palawan basin, Mindoro-Cuyo basin, Recto Bank basin.
Total revenues amounting to P87,732,561.00 would be realized upon contract signing. “These are processing fee, signature bonus, development assistance, training commitment and scholarship assistance, which are all stipulated in the service contract,” it explained.
Aside from the potential revenue, P11.6 million in application fees was received by the agency.
Proceeds from the PCECP will be turned over to the National Treasury.
Udenna Corp. of Davao businessman Dennis Uy earlier nominated to explore Areas 7 and 8 blocks that are within Reed Bank, also known as Recto Bank.
The Pangilinan-led PXP Energy Corp. also submitted a nominated bid for Area 6 block, which falls North of Reed Bank area of South China Sea.
PXP and Philodrill Corp. also submitted a bid to conduct oil and gas exploration activities in Area 7, one of the 14 PDAs offered by DOE.
To help attain energy security, as well as cushion the country from the volatility of global oil price markets, the DOE established the PCECP to help reinvigorate petroleum exploration and development activities in the Philippines.
The DOE is hoping that the contracting round would result in finding another Malampaya, the offshore Palawan project that fuels five power plants in Batangas province.