Palace announces signing of first oil exploration deal under Duterte admin
Malacañang on Thursday, October 18, confirmed that President Rodrigo Roa Duterte has signed the first-ever petroleum service contract under his administration, which would pave the way for the conduct of more oil exploration activities in the country.
Presidential Spokesperson Salvador S. Panelo in a Palace press briefing said the President attended on Wednesday the Ceremonial Signing of the Petroleum Service Contract (PSC) for Area 4 (East Palawan Basin) of the Fifth Philippine Energy Contracting Round (PECR5).
The said agreement is between the Philippine government and Israeli firm, Ratio Petroleum Ltd. President Duterte signed the deal alongside Ratio Petroleum’s company President and CEO, Raphael Tabibzada, Panelo cited.
Reiterating the Energy Department’s recent statement, the Palace official said the event would foster better economic relations between the Philippines and Israel.
Furthermore, Panelo stressed the need for the Philippines to attain energy security and sustainability “at the soonest possible time.”
“Ang nagiging problema natin kasi, wala naman tayong oil kaya hirap na hirap tayo if we are compared to other countries na mayroon,” he said.
“We’ve been dependent on oil-producing countries for our oil, so we need to boost the exploration and development of our own energy resources,” he added.
The new agreement would allow Ratio Petroleum ltd. to explore an area of 416,000 hectares across the East Palawan Basin for potential oil and gas resources, with a projected minimum expenditure of US$34,350,000, Panelo cited.
“This will of course be derived from studies, data gathering and drilling activities over an initial seven-year contract duration,” he further added.
“So hopefully, magkakaroon tayo ng oil… and it will definitely help our country,” Panelo further noted.