Philippines endorses five oil and gas contracts

The Department of Energy awards contracts to eight local and foreign companies.

Energy Undersecretary Ramon Oca said Malacañang’s approval will pave the way for the contractors to conduct geological, geophysical studies and seismic studies. The initial investment will amount to some $5 million per area.

The oil and gas contracts are valid for seven years with a possible three-year extension, while coal contracts are two years but can be extended by another two years.

Oca said the department endorsed the contract of Planet Gas for Area 1 (Cagayan basin); the consortium of Philex Petroleum Corp., PNOC Exploration Corp. and PetroEnergy Resources Corp. for Area 4 (northwest Palawan basin); the consortium of Pitkin Petroleum Plc and Philodrill Corp. for Area 5 (also in northwest Palawan basin); NorAsian for Area 7 (Mindoro Cuyo) and Loyz Oil for Area 14 (east Palawan basin).

China has existing claims on Area 3, Area 4 and 5 which are parts of the West Philippine Sea.