President Rodrigo Duterte today signed the Petroleum Service Contract (PSC) for Area 4 (East Palawan Basin) of the Fifth Philippine Energy Contracting Round (PECR5) at the Presidents’ Hall of Malacanan Palace.
According to the Department of Energy (DOE), this is the first petroleum service contract signed under the Duterte administration, Israeli firm Ratio Petroleum Ltd. would be able to conduct exploration activities in the East Palawan Basin, covering 416,000 hectares, for potential energy resources.
DOE said projected minimum total expenditure is valued at US$34,350,000 to be derived from studies, data gathering and drilling activities over the initial seven-year contract duration.
Energy Secretary Alfonso G. Cusi was present during the signing. Itay Raphael Tabibzada, President and CEO of Israeli firm Ratio Petroleum Ltd. was also present to sign for the firm.
“The President has been very clear – our country needs to attain energy security and sustainability at the soonest possible time. We are currently experiencing how our dependence on importation has left us at the mercy of price movements in the global oil markets. We need to boost the exploration and development of our own energy resources and the awarding of the petroleum service contract to Ratio Petroleum is a step in the right direction,” Cusi said.
“This is the first petroleum service contract signed under the Duterte administration. In fact, the last service contract awarded was with PXP Energy Corporation. This was almost five years ago in 2013,” Cusi added.
Area 4-East Palawan has an estimated resource potential of 1,230 million barrels of oil, and 2,062.75 billion cubic feet of gas.
Sources: https://www.doe.gov.ph/press-releases/ph-inks-oil-exploration-deal-israeli-firm; https://www.facebook.com/doe.gov.ph/photos/a.484692124965725/1556897977745129/?type=3&theater; https://www.facebook.com/doe.gov.ph/posts/1556896737745253