THE Department of Energy (DOE) on Wednesday awarded five petroleum exploration service contracts (SCs) to four Filipino oil exploration companies composed of Miocene Mining and Energy Corp. (MMEC), Helios Petroleum and Gas Corp. (HPGC), Burgundy Global Exploration Corp. (BGEC) and NorAsian Energy Ltd. (NEL).  

The DOE said the petroleum blocks were offered as Areas 1, 5, 6, 8 and 9 during the Philippine Energy Contracting Round (PECR) 2006 of the DOE.

MMEC was awarded SC 65 (Area 1- Cagayan Block), HPGC was awarded SC 66 (Area 8-Agusan Davao Basin), BGEC was awarded two oil exploration contracts, SC 67 and 68 in East Palawan (Area 5- Block 1 and Area 6- Block 2), and NEL was awarded SC 69 (Area 8-Visayan Basin).

The DOE said it expects a total projected financial seven-year exploration investment of $79.2 million for these five awarded contracts, which adds to a total of $456.85-million projected exploration investment since 2004.  

The DOE said that there are now 33 active SCs to date.

Area 1 is located in the Cagayan Basin, Northern Luzon (onshore and offshore).  MMEC plans to conduct a seismic survey over the block in order to identify potential sites for drilling at least two wells with total investment for its seven-year work program of from $7 million to $21 million.

Areas 5 and 6 are located in the Sulu Seas, southwest of Palawan.  BGEC plans to acquire seismic data and drill four wells in each of the areas with investments totaling $21.7 million for each area.

Area 6 is located in offshore Central Visayas, surrounded by the islands of Cebu, Bohol, and Leyte. NEL plans to acquire seismic data and drill a well with costs totaling $11.2 million.

The DOE said that Area 9 is located in the northeastern portion of the Mindanao Island.  HPGC, in partnership with Cenozil Energy Corp. (CEC), plans to acquire seismic data and drill at least two wells totaling $6.55 million in projected investments for the seven-year exploration period.

The DOE said that regions which have areas under contract benefit from the tourism and the influx of expatriate employees from the respective companies.  

The DOE added the companies will secure the necessary certificates and clearances before they start the exploration.  

“The national government will need to ensure that activities connected to oil and gas exploration will have the least or no impact on the environment,” said the DOE.

The DOE pointed out that the Philippine government continually encourages the private sector to participate in its energy independence program that aims to reduce overdependence on imported fuels.  

Through intensive petroleum exploration, the DOE hopes to find additional reserves to supply the local demand.  With the awarding of these five new SCs, the DOE expects to fulfill its mission and vision of ensuring sustainable, stable, secure, sufficient, accessible and reasonably priced energy.

Present during the signing ceremony were representatives of the service contractors, namely, Rudolph Darius N. Abad of MMEC, Richer S. Andaya of HPGC and its partner, Eduardo T. Alingarog of CEC, Rogelio T. Serafica of BGEC, Rufino B. Bomasang of NEL and former energy secretary Francisco L. Viray of Trans-Asia Oil & Energy Development Corp. 

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THE Department of Energy (DOE) on Wednesday awarded five petroleum exploration service contracts (SCs) to four Filipino oil exploration companies composed of Miocene Mining and Energy Corp. (MMEC), Helios Petroleum and Gas Corp. (HPGC), Burgundy Global Exploration Corp. (BGEC) and NorAsian Energy Ltd. (NEL).  

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