Firms seen to defer PH exploration plans
By Jordeene B. Lagare – May 18, 2020
from The Manila Times
SOME exploration companies are expected to shelve their plans to explore petroleum resources in the Philippines for about a year as the world continues to grapple with the impact of the coronavirus disease 2019 (Covid-19) pandemic, according to the Department of Energy (DoE).
“Oil and gas [exploration], not only in the Philippines, but globally, will be affected. Everybody is watching. Some people are already deferring for a year their plans of expansion and operations,” Energy Secretary Alfonso Cusi said in a virtual presser.
“Dito sa atin sa ating (Here in our) exploration, we’re also seeing it will be affected because the exploration companies will be rethinking how we will address it,” Cusi told reporters.
Nonetheless, the Energy department is continuously pushing for the expedition of the exploration work to ensure availability of power supply in the country.
“Tayo naman, sa DoE, (We, at the DoE), we want it to proceed dahil kailangan natin (as the country needs it) for energy security. We’re pushing it, the department is pushing it. We’re trying to encourage that they do it now and we will continue to do that,” said the Energy chief.
Under the PCECP, prospective investors are provided with two modes of application. Entities may either submit a bid for the 14 pre-determined areas (PDAs) identified by the government through the DoE or nominate and publish other areas of interest.
This is part of the government’s efforts to develop energy resources, one of which is petroleum, for long-term energy security.
In April, the agency deferred the opening of bids to explore areas with potential petroleum reserves, including those in the West Philippine Sea (South China Sea), due to the enhanced community quarantine imposed in Luzon and other parts of the country.
The DoE had received proposals and sought counter bids to develop oil and gas areas from undisclosed entities.
These are Nominated Area No. 5 or the Mindoro-Cuyo Basin (1,132,000 hectares); as well as Nominated Area No. 6 (1.432 million hectares); Nominated Area No. 7 (1.5 million hectares); and Nominated Area No. 8 (1.412 million hectares), all situated within the West Philippine Sea.
The DoE suspended the opening of the bids because there were no counteroffers for Nominated Area No. 5 after the 60-day period to challenge lapsed on March 31.
In the case of three nominations covering disputed waters, the Energy department said the opening of the nomination/challenge would be made after the lifting of the Covid-19 lockdown.
Cusi assured bidders that the DoE is all set for the bid opening under the PCECP and that it will be held as soon as the quarantine is lifted.
“We will open the proposals as soon as the quarantine is lifted, or lumuwag-luwag (restrictions are eased), and people can start working and the companies can attend. But the department is ready, business as usual naman kami dito (it is business as usual at the DoE) as far as supporting our frontliners,” he said.
