The Department of Energy (DOE) is set to craft rules on the Philippine National Oil Company – Exploration Corporation’s (PNOC-EC) possible deals after the passage of an executive order allowing third party participation in oil and gas ventures.
DOE said this will be done with the cooperation of the Governance Commission for Government-owned or -controlled Corporations (GCG).
The China National Offshore Oil Corporation (CNOOC) and Spanish firm Repsol S.A have pending farm-in deals with PNOC-EC.
“We have yet to issue rules and regulations in coordination with the GCG on the selection process to be observed by PNOC-EC,” Energy Assistant Secretary Caron Aicitel E. Lascano was quoted in a Manila Bulletin report.
She added that the rule making for these deals will be done after the preliminary meeting with GCG.
The recently passed EO 80 was done as a “corrective measure” to the EO 556, which prohibits PNOC-EC to enter farm-in, farm-out deals on its petroleum service contracts.
CNOOC is interested in Service Contract (SC) 57 at the Calamian block in Northwest Palawan, while Repsol is eyeing the SC 59 or the West Balabac petroleum block in Southwest Palawan.
DOE is hoping to raise fresh capital flow in the upstream sector of the country’s oil and gas industry, with rules the clarification of rules.
However, the exploration of the West Philippine Sea is still in discussion with the Department of Foreign Affairs and with the government of China.