- 5th Mining Investment Asia shines the spotlight on South East Asian Mining Sector
- Colossal Petroleum’s oil exploration bid nixed
- Mining town gets P37-M water project
- Transco to settle P2-b debt with renewable power plants
- SMC-Meralco consortium investing P99b in coal plant
- Marcventures: Bauxite reserves of 73.2 million WMT in Samar
- Moratorium on new PH mines stays for now
- KEPCO Makes Foray into Renewable Energy Market in the Philippines
- Energy Deal Deepens Once Unimagined Sino-Philippine Friendship
- Recto Bank drilling likely to trigger oil exploration moratorium lifting
Colossal Petroleum’s oil exploration bid nixed
THE Department of Energy (DoE) has formally rejected Colossal Petroleum Corp.’s proposal to explore oil and gas resources in two areas in Palawan province.
On the sidelines of a press conference in Taguig City, Energy Resource Development Bureau Director Ismael Ocampo said the department canceled the awarding of a petroleum service contract to the company as the latter’s bid “did not prosper” on account of a Commission on Audit (CoA) decision on a tax issue involving the group behind the Malampaya gas field.
In that 2019 decision, the commission found that the consortium operating that field in offshore Palawan — made up of Shell Philippines Exploration B.V., Chevron Malampaya LLC and state-run Philippine National Oil Co.-Exploration Corp. — had incurred a P53.14-billion tax liability, Manila Times reported.
Colossal Petroleum had submitted bids to explore East Palawan’s Area 5, which measures 576,000 hectares and has the potential to yield 1,897.4 million barrels of oil (MMBO) and 2,846.6 billion cubic feet of gas (BCFG); and Area 7 in Reed Bank, which spans 468,000 ha. and has the potential to yield 165 MMBO and 3,846 BCFG.
The oil company had been qualified to exploring these areas under 5th Philippine Energy Contracting Round, an old scheme of awarding service contracts for coal and petroleum exploration.
But in October, Energy Secretary Alfonso Cusi said that if the oil firm would no longer pursue its exploration plans, “we have no choice but to terminate it, because we cannot leave it hanging.”
He also said then that Colossal Petroleum was not willing to do what Israel’s Ratio Petroleum Ltd. did, which was accepting whatever the SC’s ruling on the Malampaya consortium’s petition to review the CoA’s order to pay the taxes incurred.
Energy Undersecretary Donato Marcos explained that the DoE had given Colossal Petroleum an ultimatum to either disclose its plans to explore the area or abide with the High Court decision’s on the petition.
But that ultimatum, issued “about two to three months ago,” had already “lapsed,” effectively rejecting Colossal Petroleum’s bid, he said.