DOE to begin new contracting program for petroleum resources


The Department of Energy (DOE) will start the Philippine Conventional Energy Contracting Program (PCECP) in November as part of its efforts to ensure reliable and sustainable energy demand.

The department said the PCECP is one of its programs to ensure that the country will have an affordable and modern sustainable energy that can supply the country of its needs.

“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,” DOE Secretary Alfonso Cusi said.

Cusi added that the development in global exploration will help cushion the transport and power sectors against the ever changing prices of oil in the world market.

The PCECP is a new petroleum service contract awarding mechanism that will give the government more grasp on the development and utilization of local petroleum resources.

Awarding of contracts under this new mechanism are either via competitive selection process or nomination.

Road shows were set in Palawan on September 20, Davao on September 27, and Zamboanga in October to promote the PCECP.

It can be recalled that on August 31, DOE had an international road show in Singapore, wherein one-on-one meetings with 18 petroleum exploration companies happened which was led by Assistant Secretary Caron Aicitel Lascano.

Lascano said 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.

Under the PCECP, potential contractors will be allowed to nominate areas other than the 14 pre-determines areas (PDAs), as compared to the previous contracting mechanism of the Philippine Energy Contracting Round (PECR).

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.

Now there are 22 active petroleum service contracts in the country. Some of the DOE’s operator-partners include Shell Philippines Exploration, Total E&P, 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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