The Department of Energy (DOE) is set to sign geothermal exploration contracts with three firms under the Petroleum Exploration Contracting Round (PECR) 3.
Energy Secretary Angelo Reyes said Guidance Management Corp., Biliran Geothermal Inc. and Basic Energy Corp. have been awarded the contracts to explore and develop the geothermal areas in Amacan in Compostela Valley, Biliran and Mabini in Batangas, respectively.
Reyes said he sees the need to develop more indigenous sources of energy amid the continuing volatility of crude prices.
The DOE launched in 2004 the contracting round for oil, coal, geothermal exploration areas to reduce the country’s dependence on imported fuel.
After PECR 3, Reyes said they would proceed with PECR 4 to offer more exploration areas.
“We are now moving in that direction and my instruction is to have these people who are wanting to do exploration and development work to present to us,” the energy chief said.
In 2006, the DOE offered under the PECR nine petroleum contract areas covering 7,263,900 hectares within the prospective basins of East Palawan and Mindoro-Cuyo as well as in the promising basins of Cagayan, Central Luzon, Visayas and Agusan-Davao.
Government hopes to generate more than $200 million worth of investments under PECR 3.
Aside from oil and gas prospects, 14 coal prospects with a combined estimated reserves of 421million metric tons (MMT) in Quezon, Negros Occidental, Cebu, Surigao del Norte, Surigao del Sur, Agusan del Sur, Davao Oriental and Zamboanga Sibugay were also offered for bidding under PECR 3.