BASIC Energy Corporation (Basic) and Trans-Asia Oil and Energy Development Corporation (TA) announced on Wednesday they have signed a drilling contract with a third party for their geothermal project in Mabini, Batangas after the consortium approved the drilling program for an exploratory well at the site.
A Notice of Intent to Drill has likewise been submitted to the Department of Energy (DOE), the consortium said.
The consortium yesterday formally signed the drilling contract with Diamond Drilling Corporation of the Philippines (DDCP) for the drilling and coring of an exploratory hole with a minimum depth of 1,500 meters.
The drilling program is set to be completed within 90 days from commencement.
The decision to award the drilling contract to DDCP followed the consortium’s rigorous assessment of the technical capabilities of shortlisted contractors vis-à-vis its approved budget.
Located in the Calumpan Peninsula, Mabini Geothermal Service Contract No. 8 covers 3,841 hectares. Based on the pre-feasibility study, the area is projected to yield a power capacity of between 20 megawatts and 60 megawatts.
Basic Energy has a 75 percent stake in the project and is the operator of the service contract while Trans-Asia has an equity participation of 25 percent.