Oil and Gas Exploration Awards in Philippine Waters

[lastlid]

"The Philippines is expected to award 15 contracts for oil and gas exploration in July as the country aims to reduce its reliance on oil imports, a senior energy company official said on Tuesday.

"We have received a lot of bids from foreign companies," Philippines National Oil Company (PNOC) CEO Antonio Cailao told Reuters.

"I believe there is a lot more oil and gas in the Philippines" given the country's proximity to other producers in the Asia-Pacific such as Indonesia and Australia, he said"


http://www.abs-cbnnews.com/business/...acts-july-pnoc


"MANILA, Philippines - Tensions in the West Philippine Sea is not stopping investors from exploring the area for oil and gas, the Department of Energy (DOE) said on Thursday.

We have not received any expression of concern about what has happened. Besides, again, the Philippines, the [Department of Foreign Affairs] and the President himself have categorically stated that the areas we have offered are all within Philippine territory, no doubt about that," Undersecretary Jose M. Layug Jr. said.

Well, they can contest. But again, as far as the Philippine government is concerned - [Areas]3 and 4 - they are located about 30 to 40 kilometers from Palawan, so there is no doubt about it. Even if we use international law, UNCLOS, it is definitely well within the 200 nautical mile exclusive zone of the Philippines," he said.

UNCLOS refers to the United Nations Convention on the Law of the Seas.

At end-March, 41 companies were applying for prequalification, with the DOE accepting 37.

We are just awaiting for documents to qualify them. So far, we have not received any information or of any concerns raised by prequalified parties. So yes, we are proceeding with our energy contracting round,Layug said.

None of the 37 has indicated which areas they will bid for, but Layug said the bids for Areas 3, 4 and 5 are due on July 31 while the rest would be open for bidding on April 27.

Among those that have prequalified are Total of France, ENI of Italy , Royal Dutch Shell, Repsol of Spain and an Autralian exploration firm that Layug failed to identify".


http://www.interaksyon.com/article/2...tensions---doe

[Terpe]

I couldn't find any info on where the 'contracts' will be. Hopefully not in any of the ever-increasing disputed areas.

Potentially a good long term prospect for Philippines

[lastlid]

I couldn't find any info on where the 'contracts' will be. Hopefully not in any of the ever-increasing disputed areas.

Yes....will be interesting to see. I notice the article refers to 30 to 40 kms from Palawan...

[lastlid]

.

[lastlid]

"MANILA, Philippines -- The Department of Energy (DOE) is set to open this week the bids of local and foreign oil-and-gas exploration companies to explore and develop potential oil and gas-yielding areas in the country, Energy Undersecretary Jose Layug Jr. told the BusinessMirror.

Layug said they would open the bids for the petroleum areas except for Areas 3, 4 and 5 all in northwest Palawan.

He said Areas 3, 4, and 5 will be opened on July 31, since these areas have a lot of data. He said the schedule would give bidders more time to analyze, review and submit their work program.

To date, there are 41 prequalified exploration companies that are expected to bid for the petroleum areas to be bid out, he added.

Among the prequalified firms are PetroEnergy Resources Corp., Nido Petroleum Philippines, PNOC-Exploration Corp., Min Energy Pty. Ltd., Shell Philippines Exploration B.V., Pitkin Petroleum/The Philodrill Corp., Dil Moro Energy Corp., Mindanao Asia International Energy, Southernpec Philippines Inc., Forum Pacific Inc., Planet Gas Ltd., Monte Oro Resources Energy Inc., Philex Petroleum Corp., Total E & P Asia Pacific Pte. Ltd., ENI, CalEnergy Resources Ltd., GDF Suez, Golden Dragon Oil and Gas Corp., NorAsian Energy Philippines Inc., KrisEnergy Pte. Ltd., Esso Exploration International Ltd., Mitra Energy Ltd., TAP Oil Philippines, Caranarvon Petroleum Ltd.,  KRX Energy Pty. Ltd., Kuwait Foreign Petroleum Co., Repsol Exploracion S.A., Fronteir Oil Co., South China Resources Inc., Desco and Clean Rock Renewable Energy Resources.

Layug said the 15 oil-and-gas exploration areas are estimated to generate investments of around $500 million for each area or a total of $7.5 billion.

Under Philippine Energy Contracting Round (PECR4), he said that there are three onshore and 12 offshore blocks being offered with a total area of more than 10 million hectares in Northwest Palawan; East Palawan and Sulu Sea basins.

Under PECR4 for oil and gas, the areas offered are: Area 1 (544,000 hectares) in Cagayan; Area 2 (676,000) in Central Luzon; Area 3 (600,000) in Northwest Palawan; Area 4 (616,000) Northwest Palawan; Area 5 (424,000) Northwest Palawan; Area 6 (840,000) in Mindoro Cuyo; Area 7 (844,000) in Mindoro Cuyo; Area 8 (840,000) in East Palawan; Area 9 (840,000) in East Palawan; Area 10 (640,000) in East Palawan; Area 11 (600,000) in Cotabato; Area 12 (456,000) in Cotabato; Area 13 (648,000) in East Palawan; Area 14 (983,900) in East Palawan; and Area 15 (482,000) in Sulu Sea.

In February the Chinese government contested the inclusion of Areas 3, 4 and 5 in Northwest Palawan in the DOE’s PECR4.

Chinese Foreign Ministry spokesman Hong Lei then issued a statement contesting Energy Secretary Jose Rene Almendras’s statement that all areas offered under the contracting round are within Philippine jurisdiction.  

“It is unlawful for any country or company to explore oil and gas in sea areas under Chinese jurisdiction without the permission of the Chinese government,” Hong said.

Layug said the Philippines’s view is that Areas 3, 4 and 5 are not part of the contested areas since these are located in Palawan.

“By simply looking at the map, of these areas being offered the farthest would only be 80 nautical miles away from the Philippine coastline,” he added.

“We don’t expect any delay. As schedule stands, bids for Areas 3, 4 and 5 must be submitted on July 31. We have 90 days to evaluate the proposed bids after submission, and we will forward the winning bids to President Aquino thereafter for signing and execution,” Layug said".


http://www.abs-cbnnews.com/business/...eum-areas-week

[fred]

There may be trouble ahead..

[lastlid]

Yeah. Don't invest all of your money in Pinoy oil stock just yet....

[Terpe]

I'm not sure if I should admit this, but I'm a huge fan of Fred Astaire.

[lastlid]

"The Philippines is like a blind beggar sitting on a mountain of gold. Within the country’s 200-mile Exclusive Economic Zone (EEZ) are potential recoverable hydrocarbon deposits worth an estimated US$26.3 trillion. More than enough to lift the country from the centuries long morass of poverty and underdevelopment,” Nemenzo said."

http://www.mb.com.ph/articles/358043...n-oil-reserves

[fred]

"The Philippines is like a blind beggar sitting on a mountain of gold. Within the country’s 200-mile Exclusive Economic Zone (EEZ) are potential recoverable hydrocarbon deposits worth an estimated US$26.3 trillion. More than enough to lift the country from the centuries long morass of poverty and underdevelopment,” Nemenzo said."

http://www.mb.com.ph/articles/358043...n-oil-reserves

Absolutely incredible!!
I doubt that the Filipino people will benefit one IOTA though.. The politicians and certain families definitely will..No doubt about that.
Lets hope the Chinese are not prepared to go to war to stop them!!