Manila, October 29 (Engineering Daily) -- President Rodrigo R.Duterte and the President of Israeli firm Ratio Petroleum Ltd. signed the Petroleum Service Contract(PSC) on October 16, 2018.
The PSC is the first PSC contract under the Duterte administration and it allows the Ratio Petroleum to explore Area 4 where 416,000 hectares across the East Palawan Basin for potential oil and gas resources.
Projected minimum total expenditure is valued at USD34.35 million over the initial 7-year-contract duration.
The success of the oil exploration deal is expected to allow the independence of the Philippines. The secretary's interview proves this: “We need to boost the exploration and development of our own energy resources and the awarding of the petroleum service contract to Ratio Petroleum is a step in the right direction. Furthermore, this strengthens the economic relationship of Philippine-Israel.
The awarded PSC is part of Fifth Philippine Energy Contracting Round (PECR5) which was launched in May 2014. The PECR was established as a transparent and competitive system of awarding service or operating contracts for prospective petroleum or coal areas within the country.