DOE to award new coal, geothermal contracts

Deals seen signed before end-May

MANILA, Philippines- -The Department of Energy will award within the month three geothermal service contracts and two coal operating contracts in areas offered under the 2006 Philippine Energy Contracting Round (PECR-3).

Energy Secretary Angelo Reyes said these new contracts should be signed within the next few weeks, most likely before the end of this month.

Under the PECR 2006, interested investors could bid for the right to explore and develop nine petroleum blocks, 14 coal prospects and three geothermal sites located all over the country.

For petroleum exploration, the DOE has identified nine areas spanning 71,357.3 square kilometers for development, including Cagayan, Central Luzon, two blocks in Mindoro-Cuyo, three blocks in East Palawan, Visayan Basin, and Agusan-Davao.

The DOE last week awarded five new petroleum service contracts to Miocene Mining and Energy Corp., Helios Petroleum and Gas Corp., Burgundy Global Exploration Corp. and NorAsian Energy Philippines Inc.

For the five service contracts, the four companies are expected to infuse up to $82.2 million in new investments, according to data from the DOE.

In 2005, only four oil and gas areas were offered to prospective investors.

For coal, the DOE during the PECR-3 offered 14 sites with a total resource potential of 421 million metric tons (MT) for exploration, development and production.

Each site will be composed of three blocks, with each block spanning 1,000 hectares.

These sites are located in Quezon, Negros Occidental, Cebu, Surigao del Norte, Surigao del Sur, Agusan del Sur, Davao Oriental and Zamboanga Sibugay.

During the PECR 2005, no bidder qualified to get an operating contract for any of the seven areas offered.

For the geothermal sector, the DOE has pinpointed three areas for exploration, development and direct utilization for power generation and other geothermal applications.

These areas, with a combined potential of about 100 megawatts (MW), are located in Mabini in Batangas, Biliran in Biliran Province, and Amacan in Compostela Valley.

The Philippines is currently the world’s second biggest geothermal power producer with a total installed capacity of 1,931 MW.


One Response to “DOE to award new coal, geothermal contracts”

  1. Datu Daku Says:

    Huwag na mag-abroad, yayaman na ang Pilipinas!

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