OIL and gas exploration firm Basic Energy Corp. (BEC) said it has entered into a partnership with Desco Inc. for the development of its Iriga geothermal service contract.
The deal was approved by the BEC’s board of directors in its meeting on Wednesday, the company said in a disclosure to the Philippine Stock Exchange (PSE).
Desco is a provider of integrated solutions and value-added products and services in the energy sector and is engaged mostly in servicing the geothermal and oil and gas industries.
Under the agreement, Desco will be taking up an 80 percent equity position in the project.
The deal is subject to the formal signing of the Farm-In Agreement and Deed of Assignment and subsequent approval of the Department of Energy (DOE), Basic Energy said.
“For and on behalf of the consortium, Desco will then undertake a geophysical survey and all other steps required to bring the project to drilling,” BEC said.
The DOE awarded the service contract to BEC on February 26, 2013. Desco’s entry following an extensive review underscores its bullishness on the project.
The project is located the Iriga, Camarines Sur geothermal area. It is bounded on the north by the Isarog Geothermal block of PNOC-RC and to the east by the highly productive Tiwi geothermal service contract of AP Renewables, Inc. (formerly Chevron).
The areal landscape is dominated by Mount Asog, a stratovolcano immediately southwest of Lake Buhi in Southern Luzon.