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LISTEN
and weep? One is inclined to have that reaction on
hearing the new bosses at the state’s oil-exploration
firm and the energy department say lamely that the
government is still looking for ways to develop the
Camago-Malampaya oil leg (CMOL), or that part of the
existing Malampaya natural-gas zone where petroleum can
still be drawn, albeit through a costly and
technologically sensitive operation that only
experienced global players can carry out.
One is
prompted to react thus when reviewing what happened in
the past 18 months, and why the government, which should
by now already be close to sourcing indigenous oil in
these times of soaring imported prices of crude, remains
in the pits, all because of a mixture of policy miscues,
bureaucratic fumbling and—if speculations in 2007 were
to be believed—even some hint of cronyism.
Despite
the absence of any concrete work program on how it plans
to develop the CMOL, Energy Secretary Angelo Reyes said
Monday the government is still exploring also the
possibility of extracting oil underneath the Malampaya
deepwater gas-to-power project. In an interview, the
energy chief said the government is looking at other
ways to take advantage of the oil that’s still there.
“We’re still working on identifying people who would
want to explore and develop that area,” Reyes told
reporters, adding that there are people who want to
develop that (CMOL). The government, through the
Philippine National Oil Co.-Exploration Corp. (PNOC-EC),
is still discussing with prospective developers their
plans, according to the secretary.
Recall
that the PNOC-EC earlier said it is hell-bent on
developing the CMOL in a bid to boost efforts to lower
oil and power rates. “We [PNOC-EC board] agreed to help
the government to soften the impact of high world oil
prices on local petroleum products by moving forward
with the development of the CMOL in the next two years,”
Jacinto Paras, newly appointed PNOC-EC chairman, told
reporters. He revealed plans to enter soon into an
agreement with contractors to kick off the development
of CMOL, which is estimated to contain around 40 million
barrels of oil. Paras said certain terms will allow PNOC-EC
to enter into a joint venture with contractors, but it
would have to pass the scrutiny of the Department of
Energy (DOE). The PNOC-EC board remains optimistic of
extracting oil from the CMOL by 2010. Under the new
terms of reference, according to Paras, the DOE makes
the final ruling.
Imagine
that, 2010. The country, which is hard-pressed to
continually find the most cost-efficient energy
mix—considering most of its oil is imported and is
fortuitously complemented by indigenous hydro,
geothermal and some limited wind sources—should really
not have to wait until 2010 to benefit from the oil at
the CMOL area, had certain officials not been so
wooden-headed.
Few
people remember that in late 2006, a sudden policy twist
forced then-PNOC-EC chief Ed Mañalac to drop
negotiations with a Malaysian exploration company, even
though their partnership to draw oil from CMOL had been
all but forged. This set back the CMOL development by at
least eight months—meaning, we should really be
benefiting from the oil in that area by the first
quarter of 2009.
The
development of CMOL was stalled after Burgundy
Exploration sued to bar PNOC-EC from awarding the CMOL
project to Mitra Energy Ltd., on the ground that it is
the most qualified Filipino corporation pursuant to the
“Filipino First” policy of the Constitution. Mitra
Energy was supposed to be PNOC-EC’s partner in
developing the oil rim, but the agreement between them
was nullified by the issuance of Executive Order (EO)
556, which amended EO 473, and required that “the
exploration, development and production of crude oil
from the Camago-Malampaya reservoir . . . be done
through bidding.” This withdrawal of the deal with
Mitra Energy was done even though the PNOC-EC’s experts
warned about the stake: For every year of delay in
harvesting the oil from the CMOL—a highly technical and
sensitive operation that, in the hands of inexperienced
groups, could damage the existing lucrative natural-gas
area—PNOC estimated a diminution of 7 million to 8
million barrels of oil a year in ultimate recovery.
The
detractors of Mr. Mañalac, a veteran in the
international petroleum industry, dropped broad hints
that the Palace’s sudden order was meant to stop any
cozy arrangements his office may have made with some
players. But this malicious spin was belied by the
association of international petroleum players
themselves, which said nothing the PNOC-EC did under him
deviated from the standard, regular practice in the
industry.
In the
end, Mr. Mañalac chose to resign, and the government
lost someone who knew his work and commanded the respect
of the foreign businesses whose expertise and resources
are critical to the urgent initiative to harness the oil
from CMOL.
Meanwhile, Juan de la Cruz has to wait an extra eight to
12 months, while reeling from the impact of continually
rising world oil prices. There’s an apt Filipino saying
for this: “Pera na, naging bato pa.”
Happy birthday, Suu Kyi
JUNE 19
marks the 63rd birthday of the iconic symbol of all
that’s best in the benighted land called Burma—Daw Aung
San Suu Kyi, the Nobel Peace laureate whose detention
was recently extended for another year by a military
junta that fears a freed woman while holding on to a
most formidable armory.
In and
out of house arrest for more than 12 of the past 18
years, Suu Kyi’s saga has recently been taking a back
seat to the priority attention given by the
international community to the suffering of millions of
Burmese citizens affected by Cyclone Nargis—and whose
rescue and recovery has been stalled by the stubborn
refusal of the generals to allow in the timely entry of
aid workers and relief, even though tens of thousands of
the victims could have been saved from starvation or
disease.
Knowing
how much she loves her country, Suu Kyi wouldn’t really
mind having her plight relegated temporarily in the
international mind while concerned outsiders focus on
the needs of the cyclone victims. Yet, no one should
forget the most basic mission this brave woman embodies:
true freedom and democracy for the Burmese people,
suffering for 40 years now under the heel of despots.
As she
marks her 63rd day, people around the world who believe
in the right of the Burmese to choose their leaders and
end their decades of suffering from greedy, cruel rulers
should cheer on Suu Kyi: May she live a thousand years
to afflict her tormentors. |
