The Philippine Department of Energy announced Feb. 26 that it will award seven exploration contracts worth $76 million.
The government agency's move is meant to assure the island's place in the world energy market in lieu of rising oil prices. The contracts are for the development of oil and gas fields and includes expenses for drilling costs, as well as geological and geophysical duties.
The Philippine DOE recommended several companies for the contracts, including Polyard Petroleum International Group Ltd. (8011.HK), Pitkin Petroleum Ltd., Burgundy Global Exploration Corp., Norasian Energy Ltd. and Helios Petroleum and Gas Corp.
The Philippine DOE estimates a reserve potential of 456 million bfoe, which includes 25 million bbl of oil, 2,135 Bcf of gas, and 54 million bbl of condensate.
The Philippine Oil Exploration and Development Act of 1972 allows incentives for service contractors such as a "cost reimbursement of up to 70% gross production with carry-forward of unrecovered costs," "exemption from all taxes except income tax," and "service fee of up to 40% of net production."
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