The Philippine Petroleum Association of the Upstream Industry expressed optimism on a reinvigorated exploration industry under the Marcos administration.
The group, which represents key players in the local upstream industry, gave their support to Department of Energy Secretary Raphael Lotilla.
“I am pleased that we share a common view [with Lotilla] of the country’s precarious energy security situation, with its almost total dependence on imported oil and the imminent depletion of Malampaya gas. Thus, we agree that it is extremely imperative for the country to resume oil and gas exploration as soon as possible,” PAP chairman Rufino Bomasang said in his chat with Lotilla who was nominated to be the new DOE secretary.
The Philippines lags behind other ASEAN countries on exploratory drillings. The scheduled oil and gas drilling of PXP Energy Corp. this year was suspended over geopolitical concerns with China.
Bomasang and PAP president Edgar Benedict Cutiongco said in letter to the DOE dated July 18 the group’s members were excited at the new opportunities for energy growth and development.
Lotilla said in his Facebook post that he was still recovering from COVID and was asked by his doctors to take full rest until after the required isolation period.
“I would appreciate your patience as I work in the weeks ahead to play catch up with the President and the Cabinet on the priority action items for our people,” Lotilla said.
Meanwhie, oil and gas veteran Abet Morillo said the government should not extend the Malampaya gas contract which expires in 2024 and instead conduct an auction to continue its operations.
“The companies awarded with service contracts to develop and operate these proven fields should commit to drill exploratory wells with cross-cost recovery contract provisions in all energy related projects,” he said.