PH signs deal with Israeli irm for oil exploration east of Palawan
MANILA – The Philippines has signed an oil explora on deal with Israeli firm Ra o Petroleum Ltd., allowing the company to explore for oil and gas resources in an area east of Palawan.
The Petroleum Service Contract (PSC) was signed by President Rodrigo Duterte, Energy Secretary Alfonso Cusi, and Ra o Petroleum President and CEO Itay Raphael Tabibzada. The signing took place on Wednesday, October 17, in Malacañang.
The first PSC signed under the Duterte administra on, it allows Ra o Petroleum to conduct oil and gas explora on in a 416,000-hectare area called Area 4 (East Palawan Basin).
Cusi is quoted in a press release as saying that the signing of the PSC will help boost the country's energy security, now more necessary than ever given the vola lity of world market prices of oil.
"The President has been very clear – our country needs to a$ain energy security and sustainability at the soonest possible
me. We are currently experiencing how our dependence on importa on has le> us at the mercy of price movements in the global oil markets. We need to boost the explora on and development of our own energy resources and the awarding of the petroleum service contract to Ra o Petroleum is a step in the right direc on," he said.
A contract las ng seven years, this PSC is part of the Fi>h Philippine Energy Contrac ng Round (PECR5) which was launched in May 2014.
The PECR is a "transparent and compe ve system of awarding service or opera ng contracts for prospec ve petroleum or coal areas within the country," a Department of Energy press release read.
Ra o Petroleum is projected to spend at least $34,350,000 on studies, data gathering, and drilling ac vi es.
Established in 1992, Ra o Petroleum, according to its website, owns significant deep-water petroleum rights in Israel, including over the Leviathan natural gas reservoir. It also has offshore opera ons in Malta and Guyana.
This oil explora on deal was supposed to have been signed during Duterte's visit to Israel in early September. Former presiden al spokesman Harry Roque had said during the trip that Cusi had been busy with prepara ons for the signing ceremony.
The last PSC awarded by the Philippine government was signed with PXP Energy Corpora on back in December 2013. This subsidiary of Philex Mining was allowed to explore an area in northwestern Palawan.