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DOE to Launch New Petroleum Contracting Program

MEETING WITH TOTAL. The DOE Delegation meets with officials from oil firm TOTAL to provide technical updates on SC56 and promote the Philippine Conventional Energy Contracting Program. (L-R) DOE-Energy Cooperation and Coordination Division Chief Lilian C. Fernandez; Total Philippines Gen. Manager Mark Been, DOE-Energy Resource Development Bureau OIC-Dir. Melita V. Obillo; Total E&P Asia Pacific Pte. Ltd. VP for Exploration and Production Anne-Sophie Vervial; DOE-ASec. Caron Aicitel E. Lascano; Total E&P Australia, PNG and Philippines VP Marc Geniteau; DOE Dir. Cesar Dela Fuente; Rick Luis, DOE-Petroleum Resource Development Division (PRDD); TOTAL E&P Asia Pacific Pte. Ltd. Area Manager, Exploration AOC North Daniel Larranaga; Mr. Demujin Antiporda (PRDD), Mr. Gilbert Calangi (PRDD); and TOTAL S.A. Petroleum Architect Rune Teigland

The Department of Energy (DOE) is set to launch the Philippine Conventional Energy Contracting Program (PCECP) towards the beginning of November, as part of its efforts to aggressively pursue initiatives that will ensure the provision of affordable, reliable, modern, and sustainable energy and meet the growing energy demand of the country.

“For an energy-secure future, the DOE is committed to pursue energy independence and sustainability through effective and reasonable development of all indigenous energy resources in the Philippines,” Energy Secretary Alfonso Cusi said.

Cusi added that the increase in global exploration and development activities is a measure to cushion the transport and power sectors against the volatility of world market oil prices.

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. Under the PCECP, awarding of service contracts are conducted either through the competitive selection process or via nomination. The PCECP local road shows are scheduled to be held in Palawan on 20 September, Davao on 27 September and Zamboanga in October 2018.

Compared to its predecessor, the Philippine Energy Contracting Round, the PCECP would allow prospective contractors to nominate areas other than the 14 pre-determined areas (PDAs). The PDAs include one area in the Cagayan Basin, three in Eastern Palawan, three in Sulu, two in Agusan-Davao, one in Cotabato, and four in Western Luzon.

Interested parties must comply with the legal, financial and technical requirements, which include the proposed work program and economic development of the contract area. All accepted applications shall be evaluated by the DOE Centralized Review and Evaluation Committee based on the criteria, pursuant to Department Circular No. DC2017-12-0017.

To promote the PCECP, the DOE successfully kicked off an international road show on 31 August in Singapore, which coincided with the Asia-Pacific Scout Check Meeting and the South East Asia Petroleum Exploration Conference (SEAPEX). The DOE Delegation, led by Assistant Secretary Caron Aicitel E. Lascano, held one-on-one meetings with 18 petroleum exploration companies.

According to ASec. Lascano, there is considerably good investor interest in the Philippines as indicated by the meeting turnout and the expression of interest from the companies to nominate their prospective areas of interest.

The Delegation was also given the opportunity to present an overview of the PCECP during the SEAPEX Conference which was attended by major oil and gas professionals and investors operating in the region.

COURTESY VISIT. The DOE Delegation calls on officials of the Embassy of the Philippines in the Republic of Singapore. (L-R) Mr. J. Anthony A. Reyes, First Secretary and Consul, Philippine Embassy in Singapore; DOE Director Cesar G. dela Fuente; Ms. Cynthia B. Ricafort, Commercial Counsellor, Philippine Trade & Investment Center, Singapore; DOE-Energy Resource Development Bureau OIC-Director Melita V. Obillo; Honorable Joseph Del Mar Yap, Philippine Ambassador to the Republic of Singapore; DOE ASec. Caron Aicitel E. Lascano; DOE-Energy Cooperation and Coordination Division Chief Lilian C. Fernandez; Mr. Demujin Antiporda, DOE-Petroleum Resource Development Division (PRDD), Mr. Gilbert Calangi, DOE-PRDD and; Mr. Rick Luis (DOE-PRDD)

There are currently 22 active petroleum service contracts in the Philippines. Some of the DOE’s operator-partners include Shell Philippines Exploration, Total E&P, PNOC-EC, Nido Petroleum, Philodrill, PXP Energy and Galoc Production Company.

The Philippines is also home to the Malampaya Deep Water Gas-to-Power Project, the largest and most successful natural gas industrial project in the country’s history.


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