THE Department of Energy (DOE) is set to award nine new service contracts for oil and gas development across the country, a ranking official said.

Energy Undersecretary Guillermo R. Balce said the department has processed nine petroleum exploration areas which were bid out in the last Philippine Energy Contracting Round that closed last May.

He said that the DOE expects to award the contracts for these exploration blocs by September barring any hitches on the part of investors. He disclosed that most of the awardees are local companies with foreign partners.

The contract areas to be awarded cover a total of 71,357.30 square kilometers located within the prospective basins of East Palawan and Mindoro-Coyo; and in the promising basins of Cagayan, Central Luzon, Visayas and Agusan-Davao.

Balce said the service contract areas will generate a conservative $180 million in revenues for the country as a single drilling for an offshore well costs about $20 million.

The awarding of the new service contracts is expected to speed up the government’s campaign to increase oil and gas exploration in a bid to lower the country’s dependence on imported oil.

Besides the nine new service contracts, Balce said a new set of private companies has expressed interest in three separate areas in the country for exploration. He said that the DOE plans to process their proposals with the start of its next contracting round, and after the department has ironed out the nine new contracts up for awarding.

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