DOE Remains Confident in Upstream Oil and Gas Sectors

The Department of Energy (DOE) is positive that strong and renewed investor interest in the gas and upstream oil sector will carry on as it assures stakeholders of a level playing field and and sustained stability of legal framework.

“On the upstream oil and gas sector, I am pleased to note that the government’s commitment to preserve and maintain the investment incentives for service contractors under Presidential Decree 87 has been met with renewed confidence and strong interest by local and foreign investors in the oil and gas sector,” mentioned DOE Secretary Raphael Lotilla.

“I am confident that this trend will continue as we reaffirm to prospective investors the openness of our economy to foreign and local investors and assure them of the continued stability of our legal framework, especially in the upstream oil and gas sector,” Lotilla adds.

Last October, the DOE approved for the Nido Petroleum Philippines Pty. Ltd. to continue with the site survey of drilling locations in the basin of Palawan by Q4 of 2022.

This site survey is predicted to lead the way for the drilling of two wells, one appraisal and one exploration, in Service Contract (SC) 6B by the first half of 2023.

Secretary Lotilla has mentioned that the DOE has given the go signal on Shell’s 45% interest in the Malampaya Service Contract 38 to Prime Infrastructure Capital Inc. after an extensive review with PD 87.

“The President’s marching order for us at DOE and our partner agencies in the government is to ensure a level playing field,” he mentioned

“With these developments, we encourage investors to join us in steering the energy industry toward a cleaner, greener, reliable, and more sustainable future,”

Source: Philstar