MANILA — Companies are not cancelling oil rig drillings and explorations, amidst oil prices continuing to fall, according to Department of Energy (DOE) Undersecretary Zenaida Monsada.
“Thankfully no, oil rigs are not closing in the country,” Monsada told PNA.
Currently, there are three petroleum production sites in the country, namely Malampaya, Galoc and the Cadlao field which are all based in Palawan. The three fields are projected to have an output of 43,190 barrels per day by 2018, according to Fitch Group’s Business Monitor International.
Other areas, run through awarded service contract operatorships, are still at exploration stage. It involves the study of the area, to ensure the highest production of oil and gas.
Monsada assured that projects in the exploration stage are also not being cancelled due to the global glut, which originated from increased shale oil production and the Organization of Petroleum Exporting Countries (OPEC) decision not to cut supply.
Moreover, the energy undersecretary added that the Energy Department hopes that the interest for the Philippine Energy Contracting Round 5 (PECR-5) will still be converted to applications from international companies, despite the continuous fall of oil prices. PECR 5 is the bidding for service contracts on potential petroleum and coal rich sites.
Previously, DOE Secretary Carlos Jericho Petilla said the sought data packs, which are de-risked studies on the PECR-5 areas, are really expensive — pointing out it will be a waste to not make an application.
Meanwhile, Monsada noted there were previous requests to extend the application deadline for the rounds.