Benguet seeks nod for coal exploration in Surigao del Sur

By Lenie Lectura – July 29, 2024
from Business Mirror

Benguet Corp. (BC) has filed with the Department of Energy (DOE) an application for the exploration of coal resources in Surigao del Sur under the agency’s Philippine Conventional Energy Contracting Program (PCEP).

BC is applying for 12 coal blocks—38-L-161 to 166, 201 to 206 in the municipalities of San Miguel, Marihatag, and Tago.

BC must submit legal, technical, and financial document for evaluation by the review and evaluation committee. A non-refundable application fee of P200,000 per area is also required from interested bidders.

In the notice of application for coal operating contract, the DOE said interested applications may challenge the application of BC by submitting their application over the same areas.

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 nomination of an area for exploration is one of the two ways by which investors can participate in the DOE’s PCEP. The other option is choosing an area from the 14 Pre-Determined Areas (PDAs) offered by the DOE.

Once the DOE receives a bid nomination, the nominated area is subject to counter-challenge by other prospective bidders.