(Eagle News) — Energy Secretary Alfonso Cusi on Friday, Nov. 23, gave the assurance that the rights of oil companies who were awarded service contracts will be protected.
Cusi made the statement after the Philippines and China inked a memorandum of understanding that would allow for a joint oil and gas development cooperation between the two countries.
“I understand that there is great interest in the MOU signed with China. I would ask for everyone’s patience until the full details are ready to be made public,” he said.
On Thursday, Nov. 22, the Department of Energy announced it would be accepting the applications of parties interested in exploring untapped energy resources in the country within the next six months.
Interested investors can select from 14 onshore and offshore areas predetermined by the DOE.
Aside from the 14 pre-determined areas, interested parties may nominate areas within Exclusive Economic Zone (EEZ) for exploration at their own expense.
The application to explore a nominated area shall have, however, the DOE’s approval.
DOE Assistant Secretary Leonido Pulido III said that the department may name the winning applications within the next 200 days.
Pulido said the contract duration is seven years and which can be extended to another three years for the exploration phase.
The production phase has 25-year contract that can be extended to another 15 years.
But “no service contract can go beyond a stipulated 50-year period”, according to the DOE official
The MOU was only one of the 29 pacts the Philippines and China inked during Chinese President Xi Jinping’s two-day state visit.
The Palace promised to release details of the agreements, following calls from opposition senators for more transparency. With a report from PNA
