65 foreign firms show interest in PH petroleum contracting

Galoc Oil Field in Palawan may get expansion in 2019

Around 65 foreign investors and over 200 local companies are eyeing to bid in the petroleum blocks being offered by the Philippine government.

The roll of interested foreign and local companies include: Energy World Corporation, Manta Oil Company, Philipps, MCC Consortium Philippines, Sulu Sea Energy Resources Development Corporation, Ulangig Mindanao Inc., Joppa Corporation, Platinum Group Metals, Western Sulu Gulf Oil, Sulubasin Oil and Gas Corp., GE Global, Altura Mining, Minsupala Energy and Minerals Resources, Esmaulana Global Ventures Company, Hansung Global Korea, PIONAIRE Finance Ltd., Esrael Group of Investors, Seaoil Philippines, Tawi-Tawian Petroleum Trading, Island Petroleum Corporation, Philindo Tech Naga Corp., Eastern Petroleum Corporation, Troika Giant Power Corp., Mindanao-Asia International Energy Limited, Pacific Coast, Ostrea Mineral Laboratories, San Lorenzo Ruiz Builders and Developers, Global Oil and Gas Resources, EP Oilfields Services, Glove Inc., MASE Holdings, JST Korea, Sundagas, Desert Rose Petroleum, China International Mining Petroleum, Shell Philippines B.V., Repsol Oil and Gas, Nido Petroleum, CGG, Chevron, Searcher Seismic, Valero Texas City Refinery, Philodrill Corporation, Phinma Petroleum, Newrest SOS , PXP Energy and PetroEnergy Resources Corporation.

According to the Department of Energy (DOE), interested investors may either submit proposals for the 14 pre-determined areas or submit their own preferred blocks at their own pace.

DOE Secretary Alfonso G. Cusi said the country needs to upgrade its efforts in attracting investors into the exploration and development of local oil and gas resources since it has already been way behind its neighboring countries.

“We have been grossly trailing behind our neighbors in terms of petroleum exploration and development activities,” he stressed.

Cusi added that the exploration efforts are also in line with the government’s national goal for energy security and total electrification.

He also assured that the 14 blocks being offered to investors do not belong to so-called “conflict areas” and that diplomatic relations will not be a concern.

The DOE previously projected investments of up to $ 2.376 billion just for the 14 blocks currently offered. These include four (4) areas in West Luzon basin; three (3) areas in East Palawan; three (3) blocks in Sulu Sea; two (2) areas in Cotabato; and one each in Cagayan and Agusan-Davao basins.

DOE Undersecretary Donato Marcos indicated that the department had already received unsolicited offers on at least six service areas.

The submissions were from two Filipino-led investor-groups: the Toquero Group or the consortium of Western Sulu Gulf Oil Corporation, Sulubasin Oil and Gas Corp, Seabed Crescent Energy Corp. and Offshore Celebes Energy Corporation which had been eyeing at least four (4) service areas; and the two other areas covered the offer of Constellation Energy Corporation.

Even blocks in disputed areas in West Philippine Sea have been drawing some interests from both local and foreign parties. The said areas are nearby the Reed Bank in northwest Palawan basin with total investments anticipated to reach US$216 million including work phases from geological and geophysical surveys, acquisition of data and drilling of about three exploration, and appraisal wells.

Around US$36 million service contracts will be needed for capital expenditures if all six petroleum service contracts will be awarded, Marcos said..

For the predetermined areas, targeted investments had been set higher because the areas are composed of eight shallow and six deep water seismic survey and exploration activities.

Drilling a well in shallow waters amounts to US $ 15 million per well, while those in deep waters will need a capital outlay of US $ 100 million per well.

Expenses could reach US $ 45 million per petroleum block for those in shallow waters and US $ 300 million per service area for those in deep waters.

 

 

Meanne Rosales is a reporter and segment producer at Power Philippines. For content concerns, story pitches, or partnerships and collaborations, you may contact her through meanne@powerphilippines.com.

Comments

comments




%d bloggers like this: