THE Philippine National Oil Co.-Exploration Corp. (PNOC-EC), the government’s coal, oil-and-gas exploration arm, is looking at participating in the Philippine Energy Contracting Round (PECR) for coal areas.
In a recent interview, Gemiliano Lopez Jr., (PNOC-EC) chairman and chief executive, told reporters the company would definitely participate once the Department of Energy (DOE) launches the PECR for coal areas in the country.
“We’re interested with any area they will bid for as long as the areas have good prospects or viable reserves,” he said.
Energy Undersecretary Jose Layug Jr. earlier said the DOE is set to bid out coal areas for exploration and development in October.
Layug added that preparations are under way for the launch of the PECR for coal areas.
Layug said they would finalize the areas to be offered by mid-September and launch PECR for coal contracts by the first week of October.
The DOE said the three potential areas for possible coal exploration and development were in Cebu, Surigao del Sur and Zamboanga del Norte.
Lopez earlier said PNOC-EC was set to launch the Lumbog coal-mine project on August 24. The Lumbog coal mine is in the municipality of Imelda in Zamboanga Sibugay.
Part of Coal Operating Contract 41, Lopez said the Lumbog coal mine has a development area of 170 hectares, and an expected mining reserve of 1.39 million metric tons (MMT).
Lopez said development of the coal mine will be between 2011 until 2012, and that regular production is expected by 2013.
The Lumbog coal project is expected to augment PNOC-EC’s current coal production by 150,000 MT per year.
The development of Lumbog coal spearheads the line of development projects in PNOC-EC’s Malangas Project Operations (MPO).
In July the PNOC-EC board of directors approved a P1.35-billion development program for new areas in MPO, such as the Lower Butong and Sta. Barbara.
Expected coal-mine reserves for the Lower Butong and Sta. Barbara is around 1 MMT and 2 MMT, respectively.
PNOC-EC is set to drill around 10 to 15 holes in-fill in the Lower Butong this year to increase its level of confidence in the area, and 30 holes in Sta. Barbara is set next year.
“Our focus is on the three coal mines—Lumbog, Lower Butong and Sta. Barbara...that is our priority,” Lopez said.
He added that the three mines is expected to add production of 800,000 metric tons annually by 2015 on top of the 1.19 MMT in coal sales registered last year.
Lopez said the three mines are estimated to have total reserves of more than 4 MMT.
“We will catch up with Semirara’s coal-mine operation. Our coal sales will go up, especially after Lumbog starts production,” Lopez said.
He added that they would also be able to increase coal sales by blending local inferior coal with good quality coal, which they plan to sell to industries.
Lopez said 15 percent to 25 percent of cement factories are converting to coal-fired facilities.
PNOC-EC said the consolidated program for MPO intends to augment the supply of indigenous coal sources in the country.
