The Department of Energy rejected the bid of Colossal Petroleum Corp. to explore oil and gas in Area 7 offered under the 5th Philippine Energy Contracting Round in 2014.
“It did not prosper because of the CoA (Commission on Audit) ruling, they did not comply,” Ismael Ocampo, director of Energy Resource Development Bureau, said Friday.
Ocampo said the department’s legal department drafted a letter terminating Colossal’s Area 7 application near the Reed Bank area.
The DoE in October asked Colossal to abide by whatever the Supreme Court decides on the pending case between the CoA and the Malampayåa consortium on the interpretation of the corporate income tax payments.
Collosal, however, preferred to wait for the results of the Supreme Court ruling.
“We wrote them a letter and met with them. We warned them that if they are not supportive, we might not push through with the awarding… If they do not comply soon, their proposal may be disqualified,” Energy Undersecretary Donato Marcos said earlier.