Sunday, February 2, 2014

DOE moves oil, coal contracting round to Q2


Extra time will allow gov’t to hold international roadshow


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The Department of Energy (DOE) pushed back the 5th Philippine Energy Contracting Round (PECR) to April of 2014 to account for all energy blocks that are fit for contracting.


“The most likely deadline (for the launch) is April. The target for the awarding is June 30,” Energy Secretary Carlos Jericho Petilla told reporters.


The DOE had originally scheduled the launch of PECR5 for the first quarter of this year. However, Petilla said the department had noticed changes in some of the blocks that were being considered for auction, prompting it to defer the launch.


“We need to verify all areas, to make sure we will not forget anything,” Petilla said.


Considered for PECR5 was Service Contract 55, the oil and gas exploration off Palawan that Otto Energy Ltd. of Australia is taking over from operator BHP Billiton. The project, touted as the next Malampaya gas field, was considered for a rebidding after BHP withdrew last year amid problems in securing permits at the local government level. Otto Energy has since sought the permission of the DOE to take over BHP’s 60 percent working interest (for a total stake of 93.18 percent), saving the SC55 project from a restart.


The delay in the launch of PERC5 would make room for the holding of an international road show to woo more investors for new oil and coal exploration blocs.


Energy Undersecretary Ramon Allan V. Oca said such a roadshow, if it would push through, might be timed with international conferences such as that of the American Association of Petroleum Geologists. “That way we can reach a bigger audience. All the oil companies are there,” Oca said.


AAPG schedules its annual conference alternately in the United States, Europe and Asia. In 2014, the AAPG Annual Convention and Exhibition will be held in Houston from April 6 to 9, according to the association’s website. Oca said the itinerary for the Philippine roadshow will be finalized soon.


As for improvements expected in the PECR round, held regularly to boost local energy resources and curb the Philippines’ dependence on fuel imports, Oca said the DOE had been streamlining bidding rules and offering more assistance to investors.


He said the DOE was now open to helping foreign companies authenticate their documents to be able to participate in the bidding. Another proposed improvement is for the DOE to hold the equivalent of a pre-bidding conference to clarify all documentary and other requirements before the auction.


“We want to make sure bids are not wasted,” Oca said.



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Tags: Business , Department of Energy , economy , News , Philippine Energy Contracting Round



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