Tender for oil areas set on June 30

source: mb.com.ph

The Philippines will offer 15 prospective petroleum areas for exploration and development at tender from June 30, hoping to boost local supplies, particularly of natural gas, as it seeks to reduce oil imports, an energy official said.

''We need gas because Malampaya is not sufficient for us,'' Energy Undersecretary Jose Layug said at an industry conference in Singapore, referring to the country's major gas discovery which helps produce 2,700 megawatts of power for the main Luzon island.

He said the prospective oil and gas sites had been pre-tested, with 30 wells already drilled, and would be offered from June 30.

The Southeast Asian country, which imports most of its oil requirements, is promoting the use of natural gas in its transportation sectors.

It is also offering infrastructure projects to investors, including pipelines needed to make liquefied natural gas (LNG) available particularly in power-starved areas such as the southern Mindanao region.

''When Malampaya begins to deplete as early as 2018, we will need gas supply -- whether that will be LNG onshore or offshore, we don't know,'' Layug said.

The official also said the Energy Department was looking to extend a one-month fuel subsidy program recently approved by President Benigno Aquino to help counter rising fuel costs.

''The Department of Energy is pushing for longer than one month. Our mandate is first to implement the first month and then we will go from there,'' he said.

source: mb.com.ph