Page 32 - Oil&Gas-AustralAsia-2015-Issue-5
P. 32
P HILIPPINES
Latest bid round fails to attract explorers
By Marie RYAN
the country’s Exclusive Economic Zone expertise accounting for 20 per cent of
The Philippine government has and part of its economic interest despite the process.
announced interest in the country’s its location in the disputed Reed Bank Each service contract covers seven years
oil and gas exploration prospects has area of South China Sea. of exploration, which can be extended
dropped due to weak global oil prices Colossal Petroleum also submitted a bid for another three years, and 25 years
with few companies joining in the fifth for Area 5 (Northeast Palawan block) of production, which is extendable for
and latest round of acreage releases. covering 576,000 hectares. another 15 years.
Only three companies submitted bids Israeli company Ratio Oil Exploration Energy Director Abad said initial mar-
on four release areas with the depart- applied for a service contract for Area ket feedback during the recent explora-
ment awarding two out of three explo- 4 (Northeast Palawan Block) covering tion roadshow cited low oil prices as a
ration sites after the application process 416,000 hectares. The Philippine gov- restriction on investment.
was complete. ernment accepted the offer of Ratio Oil “We cannot deny that there were prob-
The Energy Department said in late after it submitted complete documenta- lems encountered in the area of oil and
October it would award service con- ry requirements. gas,” Mr Abad said.
tracts in November to only two winning Philippine based company Yulaga Director Abad said most oil and gas
bidders. Oil and Exploration Enterprises were firms had realigned their budget to
Energy Department Director Ismael disqualified from their bid for incom- focusing on existing oil and gas assets.
Ocampo said the department would plete application documents for Area 1 “Companies that receive awards on
likely hold the next auction of contract (Ragay Block). service contracts must invest around for
areas next year, hopefully when oil pric- Areas that were offered but did not $40 million for oil and gas exploration
es have stabilized or gone up. receive any interest included Area 2 and development in their respective
The government offered 11 oil and gas (Panay Block), Area 3 (Panay Block), contract area,” he said.
prospects to the private sector for devel- Area 6 (Southwest Palawan block), Area There are 29 active petroleum service
opment. 8 (West Luzon block), Area 9 (West Lu- contracts in the Philippines including
Filipino company Colossal Petroleum zon block), Area 10 (West Luzon block) Shell Philippine Exploration, Total E&P,
Corporation, an affiliate of listed Coal and Area 11 (West Luzon block). Otto Energy, PNOC Exploration, Nido
Asia Holdings led by businessman Bidders on the latest exploration Petroleum, The Philodrill Corporation,
Dexter Tiu made an offer on the Area round were assessed on their work Pitkin Petroleum and Galoc Production
7 release (Recto Bank block) covering program plans, accounting for 40 per Company among the government’s
468,000 hectares. cent of the evaluation, their financial operator-partners.§
Energy Director Rino Abad said the capacity, making up 40 per cent of the
government considered Area 7 within application process and their technical
100% Increase in Exhibition Space for
Philmarine 2016
The 3rd edition of Marine Philippines building companies, maritime compa- ing technology and equipment to help
2016, Shipbuild Philippines 2016 and nies and also its supporting industries maintain Philippines current status as
Offshore Philippines 2016 is the only gathered in the capital of Manila, to the World’s 5th largest shipbuilding
specialized Shipbuilding and Maritime showcase the latest developments in industry. visit www.philmarine.com.§
event in Philippines that brings together the shipbuilding and maritime industry
an international congregation of ship- and to improve the current shipbuild-
A A30 OIL & GAS ustral SIA NOVEMBER/DECEMBER 2015 www.oilandgasaustralasia.com
Latest bid round fails to attract explorers
By Marie RYAN
the country’s Exclusive Economic Zone expertise accounting for 20 per cent of
The Philippine government has and part of its economic interest despite the process.
announced interest in the country’s its location in the disputed Reed Bank Each service contract covers seven years
oil and gas exploration prospects has area of South China Sea. of exploration, which can be extended
dropped due to weak global oil prices Colossal Petroleum also submitted a bid for another three years, and 25 years
with few companies joining in the fifth for Area 5 (Northeast Palawan block) of production, which is extendable for
and latest round of acreage releases. covering 576,000 hectares. another 15 years.
Only three companies submitted bids Israeli company Ratio Oil Exploration Energy Director Abad said initial mar-
on four release areas with the depart- applied for a service contract for Area ket feedback during the recent explora-
ment awarding two out of three explo- 4 (Northeast Palawan Block) covering tion roadshow cited low oil prices as a
ration sites after the application process 416,000 hectares. The Philippine gov- restriction on investment.
was complete. ernment accepted the offer of Ratio Oil “We cannot deny that there were prob-
The Energy Department said in late after it submitted complete documenta- lems encountered in the area of oil and
October it would award service con- ry requirements. gas,” Mr Abad said.
tracts in November to only two winning Philippine based company Yulaga Director Abad said most oil and gas
bidders. Oil and Exploration Enterprises were firms had realigned their budget to
Energy Department Director Ismael disqualified from their bid for incom- focusing on existing oil and gas assets.
Ocampo said the department would plete application documents for Area 1 “Companies that receive awards on
likely hold the next auction of contract (Ragay Block). service contracts must invest around for
areas next year, hopefully when oil pric- Areas that were offered but did not $40 million for oil and gas exploration
es have stabilized or gone up. receive any interest included Area 2 and development in their respective
The government offered 11 oil and gas (Panay Block), Area 3 (Panay Block), contract area,” he said.
prospects to the private sector for devel- Area 6 (Southwest Palawan block), Area There are 29 active petroleum service
opment. 8 (West Luzon block), Area 9 (West Lu- contracts in the Philippines including
Filipino company Colossal Petroleum zon block), Area 10 (West Luzon block) Shell Philippine Exploration, Total E&P,
Corporation, an affiliate of listed Coal and Area 11 (West Luzon block). Otto Energy, PNOC Exploration, Nido
Asia Holdings led by businessman Bidders on the latest exploration Petroleum, The Philodrill Corporation,
Dexter Tiu made an offer on the Area round were assessed on their work Pitkin Petroleum and Galoc Production
7 release (Recto Bank block) covering program plans, accounting for 40 per Company among the government’s
468,000 hectares. cent of the evaluation, their financial operator-partners.§
Energy Director Rino Abad said the capacity, making up 40 per cent of the
government considered Area 7 within application process and their technical
100% Increase in Exhibition Space for
Philmarine 2016
The 3rd edition of Marine Philippines building companies, maritime compa- ing technology and equipment to help
2016, Shipbuild Philippines 2016 and nies and also its supporting industries maintain Philippines current status as
Offshore Philippines 2016 is the only gathered in the capital of Manila, to the World’s 5th largest shipbuilding
specialized Shipbuilding and Maritime showcase the latest developments in industry. visit www.philmarine.com.§
event in Philippines that brings together the shipbuilding and maritime industry
an international congregation of ship- and to improve the current shipbuild-
A A30 OIL & GAS ustral SIA NOVEMBER/DECEMBER 2015 www.oilandgasaustralasia.com
