The Department of Energy (DoE) is scheduled to launch the Philippine Conventional Energy Contracting Program (PCECP) around November as part of efforts to aggressively pursue initiatives ensuring affordable, reliable, modern and sustainable energy to meet the growing energy demand.
“For an energy-secure future, the DoE is committed to pursue energy independence and sustainability through effective and reasonable development of all indigenous energy resources in the Philippines,” Energy Secretary Alfonso Cusi said.
According to him, the increase in oil exploration and development activities is meant to cushion the transport and power sectors from price volatility of oil prices in the world markets.
The PCECP is a new and transparent petroleum service contract award mechanism that allows the government to develop and utilize indigenous petroleum resources under a service contract with qualified local and international exploration companies.
Under the PCECP, service contract awards are conducted either through a competitive selection process or via nomination.
PCECP local road shows are scheduled to be held in Palawan on 20 September, Davao on 27 September and Zamboanga in October this year.
Compared to its predecessor known as the Philippine Energy Contracting Round, the PCECP would allow prospective contractors to nominate areas other than the 14 pre-determined areas (PDA). The PDA include one area in the Cagayan Basin, three in Eastern Palawan and Sulu, two in Agusan-Davao, one in Cotabato and four in Western Luzon.
Interested parties must comply with the legal, financial and technical requirements that include a proposed work program and economic development of the contract area. All accepted applications shall be evaluated by the DoE Centralized Review and Evaluation Committee based on the criteria pursuant to Department Circular DC2017-12-0017.
To promote the PCECP, the DoE successfully kicked off an international road show on 31 August in Singapore, which coincided with the Asia-Pacific Scout Check Meeting and the South East Asia Petroleum Exploration Conference (SEAPEX). The DoE delegation, led by Assistant Secretary Caron Aicitel Lascano, held one-on-one meetings with 18 petroleum exploration companies.
According to Lascano, there is considerable investor interest in the Philippines as indicated by the meeting turnout and the expression of interests from the companies to nominate their prospective areas of interest.
The delegation also had the opportunity to present an overview of the PCECP at the SEAPEX Conference which was attended by major oil and gas professionals and investors operating in the region.