THE Department of Energy (DOE) said on Monday that it would launch the Philippine Conventional Energy Contracting Program (PCECP) in November this year.
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. Under the PCECP, awarding of service contracts is conducted either through the competitive selection process or via nomination.
Compared to its predecessor, the Philippine Energy Contracting Round, the PCECP would allow prospective contractors to nominate areas other than the 14 predetermined areas. The PDAs include one area in the Cagayan Basin, three in Eastern Palawan, three in Sulu, two in Agusan-Davao, one in Cotabato and four in Western Luzon.
To promote the PCECP, the DOE successfully kicked off an international road show last August 31 in Singapore, which coincided with the Asia-Pacific Scout Check Meeting and the South East Asia Petroleum Exploration Conference. The DOE delegation, led by Assistant Secretary Caron Aicitel E. Lascano, held one-on-one meetings with 18 petroleum exploration companies.
Local road shows are scheduled in Palawan on September 20, Davao on September 27 and Zamboanga in October.
Lascano said there is considerably good investor interest in the Philippines as indicated by the meeting turnout and the expression of interest from the companies to nominate their prospective areas of interest.
There are currently 22 active petroleum service contracts in the Philippines. Some of the DOE’s operator-partners include Shell Philippines Exploration, Total E&P, PNOC-EC, Nido Petroleum, Philodrill, PXP Energy and Galoc Production Co.
The Philippines is also home to the Malampaya Deep Water Gas-to-Power Project, the largest and most successful natural gas industrial project in the country’s history.
The DOE said PCEP is part of the agency’s efforts to aggressively pursue initiatives that will ensure the provision of affordable, reliable, modern and sustainable energy, and meet the growing energy demand of the country.
“For an energy-secure future, the DOE is committed to pursue energy independence and sustainability through effective and reasonable development of all indigenous energy resources in the Philippines,” Energy Secretary Alfonso G. Cusi said.
Cusi added the increase in global exploration and development activities is a measure to cushion the transport and power sectors against the volatility of world market oil prices.
Interested parties must comply with the legal, financial and technical requirements, which include the proposed work program and economic development of the contract area. All accepted applications shall be evaluated by the DOE Centralized Review and Evaluation Committee based on the criteria, pursuant to Department Circular DC2017-12-0017.