The Department of Energy (DOE) has given its go-signal through a signed service contract to listed Basic Energy Corp.’s geothermal project in West Bulusan, Sorsogon.
A disclosure to the Philippine Stock Exchange showed that Basic Energy received a letter from the DOE on Thursday informing the company that the Geothermal Renewable Energy Service Contract for West Bulusan, Sorsogon, has been approved and signed by Energy Secretary Carlos Jericho Petilla.
Basic Energy previously received three service contracts from the Energy department involving other exploration areas in Luzon, which covers three projects: the Iriga Geothermal Power Project, Mariveles Geothermal Power Project; and the East Mankayan Geothermal Power Project.
A few weeks ago, Basic Energy and Trans Asia Oil and Energy Development Corp. sealed an agreement to jointly explore and develop the geothermal service contracts (GSC) the DOE earlier granted to Basic.
In a memorandum of agreement, Trans Asia acquired a 10-percent stake in Basic’s Mabini GSC located in Mabini, Batangas, giving Trans Asia the option to boost its stake in Mabini to up to 40 percent.
The agreement further gives Trans Asia the option within six months to acquire up to 60 percent of Basic’s other GSCs in Mariveles Bataan, East Mankayan in Benguet, West Bulusan in Sorsogon and Mount Iriga in Camarines Sur.