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By Euan Paulo C. Añonuevo, Reporter
Malacañang has ordered the Department of Energy
to fast track the awarding of energy exploration contracts to
mitigate the effects of high crude prices.
Energy Secretary Angelo Reyes said this move
will boost indigenous energy sources and cut spending on imported
oil, which accounts for over 90 percent of the country’s fuel
needs.
“We will accelerate or speed up the process of
bidding out contracts,” he said. Reyes said this was the specific
instruction relayed by President Arroyo, who wants coal, oil and
geothermal projects hastened.
The government holds public auctions for
geothermal, petroleum and coal exploration projects under the
so-called Philippine Energy Contracting Round (PECR), the last of
which was held almost two years ago. The results of past auctions
however had languished at the energy department since Reyes assumed
the agency’s top post.
An energy department official said that bidding
rounds have yet to push through since its third exercise in 2006
because of “man-power” changes in the agency. During the said
PECR, nine petroleum, three geothermal and 14 coal exploration areas
were offered to private investors.
So far, the Energy department has awarded five
petroleum contracts in May and three geothermal contracts on
Thursday.
Reyes said two petroleum contracts separately
won by foreign firms Pitkin Petroleum Ltd. and Polyard Petroleum
International Group Ltd. are still awaiting approval from Malacañang.
Jack Rodriguez, Guidance Management Corp. head,
said the three companies’ entry will make the country the
world’s leading geothermal energy producer.
“We’re below the US by 70-megawatts in terms
of geothermal capacity. We will be the three horsemen that will
bring the Philippines to the top in terms of geothermal production
and we will be proud to do that,” he said.
The companies will initially spend about $27
million to explore areas in Compostela Valley, Biliran and Batangas
for under five-year deals with the government.
The companies’ investments are expected to
skyrocket exponentially once they develop the areas for power
generation.
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