Pres. Duterte SIGN PALAWAN OIL EXPLORATION DEAL WITH ISRAEL TO ADVANCE PHILIPPINE ENERGY RESOURCE DEVELOPMENT - PHILIPPINE REPUBLIC NEWS

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Friday, October 19, 2018

Pres. Duterte SIGN PALAWAN OIL EXPLORATION DEAL WITH ISRAEL TO ADVANCE PHILIPPINE ENERGY RESOURCE DEVELOPMENT




Pres. Duterte SIGN PALAWAN OIL EXPLORATION DEAL WITH ISRAEL TO ADVANCE PHILIPPINE ENERGY RESOURCE DEVELOPMENT 





The Petroleum Service Contract for East Palawan Area was signed by President Rodrigo Duterte during a ceremony held at the Malacañang Palace on October 17, 2018. The President was accompanied by Energy Secretary Alfonso Cusi and Foreign Affairs Secretary Teodoro Locsin Jr. Rolando Jr.

For the East Palawan Basin, the Petroleum Service Contract (PSC) was signed by President Duterte and Itay Raphael Tabibzada, during a closed-door ceremony in Malacañang last Wednesday, the chief executive officer of Israel-based Ratio Petroleum Ltd.




Across the East Palawan Basin, Ratio Petroleum can explore Area 4 covering 416,000 hectares, under the initial seven-year contract.

The DOE declared that it will be investing US$ 34. 35 million (P1.85 billion), under the seven-year work program that it has proffered for its service area.

In a report, the DOE specified that the Israeli firm's "minimum total expenditure is valued at US$34, 350, 000 to be derived from studies, data gathering, and drilling activities over the initial seven-year contract duration."

Presidential spokesman Salvador Panelo said in a press briefing in the Palace "This is the first petroleum service contract signed by the President under his administration,"




The President said, "if you remember, the President made statements that our country needs to attain energy security and sustainability at the soonest possible time."

Panelo said the government was hopeful that potential oil resources would be discovered under the Philippine-Israeli undertaking.

Energy Secretary Alfonso G. Cusi stressed that the signing of this new petroleum service contract will be a lift to the government’s long-term quest for energy security.

At this point, this is this is the most critical forecast that oil prices globally may be reaching as high as US$100 per barrel by next year and possibly sustained at a high-priced level in the coming years.




"The President has been very clear - our country needs to attain energy security and sustainability at the soonest possible time," said Cusi.

He likewise stated that "we are currently experiencing how our dependence on importation has left us at the mercy of price movements in the global oil markets."

Being a heavy importer of oil, given the country's vulnerability, Cusi further explained that "we need to boost the exploration and development of our own energy resources."

The signing of the service contract for ratio petroleum, the energy chief said is a "right step" into that direction;  although he said that there is a paramount need to expound the exploration of oil and gas resources, especially at the period when gas production will already decline at the Malampaya field.



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