The Department of Energy (DOE) announces the upcoming 3D seismic survey of one of its Petroleum Service Contractors in the East Palawan Basin scheduled to commence this March 2024. 

Israeli company Ratio Petroleum Ltd. (Ratio), the operator of Petroleum Service Contract (SC) No. 76, has contracted Shearwater GeoServices to deploy its seismic survey vessel, SW Thuridur, to acquire 3D seismic data over an area in the SC 76 block located about one hundred-fifty (150) kilometers east of Puerto Princesa, Palawan. The DOE has approved the seismic survey as part of Ratio’s work commitments for SC 76 and has the full support of the Local Government of Palawan and all concerned government agencies, such as the Maritime Industry Authority (MARINA), National Security Council (NSC), Philippine Coast Guard (PCG), Philippine Ports Authority (PPA), Department of National Defense (DND), Department of Environment and Natural Resources (DENR), Bureau of Fisheries and Aquatic Resources (BFAR), Bureau of Customs (BOC), Bureau of Immigration (BI), Bureau of Quarantine (BOQ) and Palawan Council for Sustainable Development (PCSD). 

The comprehensive 3D seismic survey will employ a state-of-the-art technology and methodologies to acquire a high-resolution imaging of the subsurface geology. By capturing detailed and high-quality seismic data within the block, Ratio aims to enhance its understanding of the basin's geological characteristics, gather high-quality geophysical data, identify optimal drilling locations with greater precision, and assess the potential for new oil and gas discoveries in offshore East Palawan. The 3D seismic survey will take around thirty-five (35) days, covering approximately 1,500 square kilometers of modern 3D seismic data. 

The Philippines has experienced a significant gap in seismic survey activity over the past eight (8) years. Ratio’s work commitment to conduct the seismic survey aligns with the current administration's support to bolster the nation's energy security, unlock the Basin's untapped resources, and stimulate the exploration and development of oil and gas in the country.

The survey also represents a significant milestone in the DOE's petroleum exploration campaign and highlights its dedication to pursuing high-impact opportunities in promising new areas in addition to the existing Malampaya Field in the Northwest Palawan Basin. The DOE is confident that the insights gained from the 3D seismic survey will further de-risk prospects and unlock the hydrocarbon potential of East Palawan Basin. 

The Department of Energy (DOE) signed Wind Energy Service Contracts (WESCs) with Mainstream Renewable Power (Mainstream) for the development of two (2) onshore wind projects in Luzon and Visayas.

These projects have a combined capacity of 440 megawatts (MW) and will be developed in Cagayan Province and Leyte --- the 100 MW Santa Ana Cagayan Wind Project and the 340 MW Panaon Wind Project on Panaon Island in Leyte. Each WESC has a 25-year operating period. 

The projects also represent Mainstream's first wholly owned onshore wind service contracts in the Philippines and one of the first 100 percent foreign-owned companies to develop the country's indigenous and renewable energy sources. Mainstream is a leading pure-play renewable energy company, with wind and solar assets across global markets, including in Latin America, Africa and Asia-Pacific.

The signing of the contracts was witnessed by Energy Secretary Raphael P.M. Lotilla and Norwegian Ambassador to the Philippines Christian Lyster.

"The signing of these onshore wind contracts further accelerate the implementation of the thrust of the Marcos Jr. Administration to develop the country's indigenous and renewable sources of energy following the lifting of foreign ownership restrictions on renewable energy development," Secretary Lotilla said. 

For his part, Mainstream General Manager for Asia Pacific, Mr. Eduardo Karlin, said, "The awards of these contracts represent an important milestone for Mainstream as we continue to grow our development footprint across the Philippines. We are committed to the Philippine market and well-placed to be part of the country's energy transition and assist the government in reaching their targets of 35 percent renewable energy by 2030 and 50 percent by 2050".

Mainstream has been operational in the Philippines since 2017, supported by a full technical and commercial development team. It has an existing partnership with Aboitiz Power Corporation to develop the 58 MW onshore wind project in Camarines Sur. This project has a 20-year offtake contract through the Green Energy Auction Program (GEAP) of the DOE. The project's construction is expected to commence in late 2024, while the commercial operation is expected in 2026.

"With the Philippine economy now thriving, marked by good growth and optimistic forecasts, we are pleased with the positive response of foreign and local investors to pour in capital in our country's renewable energy sources. Mainstream will be bringing in financial muscle and technological heft to work with our world-class workers throughout the construction and operational phases of all these projects, which means more employment for our people and livelihood opportunities in these areas," the Secretary added.

Meanwhile, Ambassador Lyster is pleased to see Mainstream taking advantage of DOE’s efforts in creating conducive conditions for renewable energy development in the Philippines and stressed that Norway remains a committed partner to the Philippines in its shift to renewable energy.

To date, the DOE has issued 21 WESCs to foreign-owned companies/developers, 4 of which are for offshore wind while 17 are for onshore wind. Some of these companies are owned or partly owned by developers in European countries such as Denmark, Belgium, France and The Netherlands. ###

The Department of Energy (DOE) respects and supports the ruling of the Supreme Court upholding the constitutionality of Section 14(e) of Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 that authorizes the DOE in times of national emergency to temporarily take over or direct the operation of any person or entity engaged in the downstream oil industry. The DOE is committed to implementing Section 14(e) of the said law as the public interest may require in times of national emergency, in accordance with the Constitution and the applicable laws and consistent with the President’s intent or instructions. The DOE will study fully with the Department of Justice and the Office of the Solicitor General the clarifications made by the Supreme Court and will take such steps as may be necessary to ensure that this measure of last resort is properly exercised whenever needed. The DOE will also continue to consult and work with all stakeholders on maximizing and diversifying sources of energy supply, enhancing its distribution and availability to the public at reasonable prices, managing the prioritization of demand to avoid or minimize potential constraints, and strengthening overall capacity to bounce back from interruptions.

Relief from the Panay power situation is less than a month away. The Panay grid will be strengthened upon the completion of the Cebu-Negros-Panay (CNP) transmission upgrade by the end of March. The regular maintenance shutdown of the Palm Concepcion Power Corporation (PCPC) will also be finished by the end of March. The Department of Energy (DOE) emphasizes the need for generators, distribution utilities, and the system operator to continue cooperating to maintain the grid's stability and quickly recover from any power interruption.

While waiting for the completion of the transmission upgrade and maintenance of PCPC, the general public is encouraged to conserve energy, especially for the month of March.

The Panay Island is powered by four (4) large coal power plants with a total capacity of 451 megawatts (MW) and nine (9) smaller diesel/bunker and renewables with a total capacity of 220.3 MW. The large coal power plants consist of three (3) units of Panay Energy Development Corporation (PEDC) and one (1) unit of Palm Concepcion Power Corporation (PCPC). Aside from generators on the island, 180 MW can be drawn from Negros to Panay through a submarine cable. The total demand for Panay Island is below 400 MW.

Currently, one of the large coal power plants, PCPC, is under regular maintenance shutdown until 30 March 2024.

On 01 March 2024, at 6:59 PM, the three units of PEDC went on shutdown resulting in a partial blackout of the Panay sub-grid and some parts of Negros. Around 80 MW of the power demand of Panay was served initially by the Negros-Panay submarine cable and later by the smaller power plants on the island. By 9:53 PM, one of the PEDC units returned online, followed by another PEDC unit by 11:22 PM. The third PEDC unit was synchronized back to the grid at 8:55 AM today, 02 March 2024. 

Short-term solutions by the System Operator, such as using 10% head room of the large coal plants as contingency reserve, are currently in place. Long-term solutions are in the pipeline, such as the energization of several renewable and conventional power plants and the completion of transmission projects to support the power generation projects and the growth of the load centers. ###

The Panay Island is powered by four (4) large coal power plants with a total capacity of 451 megawatts (MW) and nine (9) smaller diesel/bunker and renewables with a total capacity of 220.3 MW. The large coal power plants consist of three (3) units of Panay Energy Development Corporation (PEDC) and one (1) unit of Palm Concepcion Power Corporation (PCPC). Aside from generators on the island, 180 MW can be drawn from Negros to Panay through a submarine cable. The total demand for Panay Island is below 400 MW.

Currently, one of the large coal power plants, PCPC, is under regular maintenance shutdown until 30 March 2024.

On 01 March 2024, at 6:59 PM, the three units of PEDC went on shutdown resulting in a partial blackout of the Panay sub-grid and some parts of Negros. Around 80 MW of the power demand of Panay was served initially by the Negros-Panay submarine cable and later by the smaller power plants on the island. By 9:53 PM, one of the PEDC units returned online, followed by another PEDC unit by 11:22 PM. The third PEDC unit was synchronized back to the grid at 8:55 AM today, 02 March 2024.

Short-term solutions by the System Operator, such as using 10% head room of the large coal plants as contingency reserve, are currently in place. Long-term solutions, such as the energization of several renewable and conventional power plants and the completion of transmission projects to support the power generation projects and the growth of the load centers, are in the pipeline.

By the end of March, the Panay grid will be strengthened by the completion of the Cebu-Negros-Panay transmission upgrade, and the PCPC regular maintenance shutdown will be finished. In the meantime, the Department of Energy reiterates the need for cooperation among the generators, distribution utility, and the system operator in Panay.

The general public is also encouraged to conserve energy while we await the completion of the transmission upgrade and maintenance of PCPC by the end of March. ###