The Department of Energy said in a press release that four proposals have been selected for Petroleum Service Contracts negotiations in four areas in offshore Palawan and Sulu Sea basins.

The proposals, selected under the Philippine Energy Contracting Round 2005, were submitted by the joint venture of PNOC-Exploration Corporation and Nido Petroleum Philippines Pty. Ltd for Area 1 (Southwest Palawan), Burgundy Global Asset Management Corp. for Area 2 (Northeast Palawan) and Area 3 (Southeast Palawan) and the joint venture of Ranhill Berhad and Phil-Mal Petroenergy Corporation for Area 4 (Sulu Sea Basin).

The Contract Negotiating Panel for Petroleum headed by Undersecretary Guillermo Balce said the proponents merit priority consideration given their financial, legal and technical qualifications to explore and develop the respective areas, the press release said.

The DOE will start negotiations on the four proposals for a mutually acceptable petroleum service contract after issuing formal notification of the results of the contracting round evaluation to all proponents.

The four petroleum contract areas cover a total of 49,789 square kilometers in shallow to deep waters, the DOE said in the press release. In 2003, the DOE launched PCR-1 wherein exploration blocks near oil producing areas in Northwest Palawan and in vast frontier basins in Southwest and East Palawan, Sulu Sea and Reed Bank were offered for investors. Two blocks have been awarded to BHP Billiton Petroleum with Service Contract No. 56, the DOE said.

Since December 2004, sixteen petroleum exploration service contracts have been awarded with minimum financial resources amounting to $215.31 million committed to the proposed work program, it added.*

back to top