DOE issues draft circular on native hydrogen development
By Alena Mae S. Flores – September 5, 2023, 8:35 pm
from manilastandard.net
The Department of Energy issued a draft circular declaring that native hydrogen be governed by Presidential Decree 87 to help accelerate hydrogen development and help secure the country’s energy requirements.
It issued the draft circular for public consultations to provide guidelines to accelerate the exploration, development and utilization of native hydrogen to contribute to energy security, create jobs and generate wealth.
The draft circular is titled Guidelines on the Awarding of Service Contracts for the Exploration, Development, and Utilization of Native Hydrogen.
The agency said Section 3 of PD 87 provides that “petroleum” should include any mineral oil hydrocarbon gas, bitumen, asphalt, mineral qas, and all other similar or naturally associated substances with the exception of coal, peat, bituminous shale and/or other stratified mineral fuel deposits.
It said native hydrogen is the natural occurrence of hydrogen gas in geologic formations. It can be associated with methane and other hydrocarbon gases and can be considered as a mineral gas.
The DOE said academics documented several observations of seeps of native hydrogen, together with abiotic methane on the seafloor and on the continents (such as Mt. Chimaera in Turkey, Semail Ophiolite in Oman and Los Fuegos Eternos in the Philippines) in the last three decades.
The agency said this proves the natural occurrence of hydrogen as gas in the environment formed through a number of mechanisms and may considered as mineral gas.
The DOE said the exploration, development and utilization of native hydrogen found in geological formations are the same with “natural gas” as provided under Section 3 of PD 87, which are obtained from boreholes and wells and consisting primarily hydrocarbons.
PD 87 known as the “Oil Exploration and Development Act of 1972” was declared to be the policy of the State to hasten the discovery and production of indigenous petroleum and assure just returns to participating private enterprises, particularly those that will provide the necessary services, financing, and technology and fully assume all exploration risks.
The DOE said it is continuously adopting new mechanisms and strategies to effectively carry out its plans and programs as mandated under PD 87.
Meanwhile, DOE the also issued a draft circular titled Guidelines on the Awarding of Petroleum Service Contracts for Development and Production to ensure the development and production of oil and gas areas in the country.
“Whereas, there is a need to adopt a new strategy of awarding PSCs that will allow for the development and production of confirmed petroleum reserves in consideration of the intensive capital requirements and the needed technical expertise to carry out the necessary work program to fully exhaust petroleum reserves,” it said.
It said the circular aims to implement a judicious and cost-effective way to optimize the development and utilization of confirmed petroleum resources to avoid stranded petroleum reserves which will result in substantial losses to the government.
