Oriental Peninsula defers Palawan nickel project (http://http://www.abs-cbnnews.com/business/03/10/09/oriental-peninsula-defers-palawan-nickel-project-0)
Neil Jerome Morales, BusinessWorld | 03/11/2009 1:24 AM

Listed miner Oriental Peninsula Resources Group, Inc. will defer commercial operations at a Palawan nickel mine given low metal prices and bad weather in the area, a company official said.

"The price is low. It would be a disadvantage [to start operations]. We are still waiting for world nickel prices to go up," Ferdinand M. Pallera, vice-president for administration of Oriental Peninsula, said in a recent phone interview.

"We cannot operate in the area because it is raining in Palawan," Mr. Pallera added.

The 1,408-hectare Pulot mine in the town of Española in Palawan, owned by subsidiary Citinickel Mines and Development Corp., was supposed to start commercial operations this quarter.

The mine is expected to produce 800,000 metric tons of nickel in the first year, and 1.2 million metric tons in the succeeding five years.

Nickel prices have dropped by 15% to $9,775 per metric ton from $11,500 a month ago and by two-thirds from $32,500 a year earlier, data from the London Metal Exchange showed.

Mr. Pallera said nickel prices near $30,000 per metric ton would be convenient for the company to start operations.

But prices of nickel, used in infrastructure and electronics, are unlikely to bounce back this year given low demand, Richard Mills, industry observer and chairman of executive search firm Chalre Associates, said in a phone interview.

Mr. Pallera said two Japanese, one Australian and three Chinese companies have expressed interest to sign a long-term supply contract.

"They are also anticipating the shortage [in metals] worldwide so they want us to commit to them exclusively [for nickel shipments]," he added.

Oriental Peninsula used part of its P840-million proceeds from a capital-raising activity in 2007 to develop the Palawan nickel mine.

"Any deferment of projects would negatively affect the outlook in a company’s earnings," Eunica B. Maloles of online brokerage 2TradeAsia said in a separate phone interview.

The analyst said mining shares "are speculative buys especially now that metal prices are volatile."

Oriental Peninsula shares closed 35 centavos apiece on Friday, the last time it was traded, down from its listing price of P2.68 due to a court row with the Atayde-led Platinum Group Metals Corp. over the operating agreement for the Palawan property.

DENR backs mining firm�s FTAA for Runruno project (http://http://www.tribuneonline.org/business/20090311bus7.html)

03/11/2009

The Department of Environment and Natural Resources has endorsed to President Arroyo the application of FCF Minerals Corp. to convert the mining company�s permit into a Financial and Technical Assistance Agreement (FTAA) to explore and develop some 3,093.51-hectare of mineral-rich area in Runruno, Quezon, Nueva Viscaya, DENR Secretary Lito Atienza said.

The grant of FTAA to FCF will give more momentum to the revitalization program of the country�s mineral industry. Once approved by the President, this will be the 4th FTAA to be signed under the Philippine Mining Act of 1995, Atienza said.

He explained that the approval of the FTAA is much needed to entice more foreign investors in parking their funds into the country despite global economic crunch. It will also reiterate the government�s sustained efforts to rise above difficulties, �thus showing the country remains a sound proposition for investments.�

Atienza said that the entry of FCF in the country�s mining industry will accelerate the development of gold and molybdenum into commercial use. The presence of high-yielding minerals have been confirmed by FCF in its recent exploration activities which saw the boring of more or less 1,000 meters in length, 500 meters in depth and 17 meters in thickness of the area�s surface.

�Study undertaken by the Mines and Geosciences Bureau showed that the area is highly mineralized and may warrant a more detailed exploration work to confirm positive ore reserves for future development utilization,� Atienza said.

Atienza said that FCF is qualified to apply for FTAA considering that the company�s authorized capital of P210 million is way above the government�s required minimum paid-up capital of P10 million.

He also said that the conversion of the company�s exploration permit to FTAA will benefit the government considering that the company is in its final exploration phase and is in fact nearing development and utilization stages.

The proposed FTAA contract, Atienza said, conforms to the provisions of existing mining laws.

London firm gets initial OK on RP mine permit (http://http://www.abs-cbnnews.com/business/03/11/09/london-firm-gets-initial-ok-rp-mine-permit)
Reuters | 03/11/2009 6:39 PM


The Philippine government has given the preliminary go-ahead for an application by Metals Exploration Plc for a large-scale mining permit, the London-listed company and officials said.

Metals Exploration's application for its Runruno gold and molybdenum project in the northern Philippines has been endorsed by Environment Secretary Lito Atienza and passed to President Arroyo for final approval.

Metals Exploration said in November that output from the Runruno project was expected to reach 183,000 ounces of gold and 1.7 million pounds of molybdenum a year at full production, and total capital cost for the project was estimated around $208 million.

The president's approval will make the mining project the fourth to secure a financial and technical assistance agreement (FTAA) from the Philippine government.

An FTAA is important as it allows 100 percent foreign ownership of a mining venture with an initial capital of at least $50 million.

"It is going to be a big boost for the economy. I am sure (the President) will act on this very fast to allow the company to immediately operate," Atienza was quoted as saying by Metals Exploration in a statement on its website, though no timeframe for approval was mentioned.

Horacio Ramos, head of the mines and geosciences bureau, confirmed that the application had been endorsed and handed to Arroyo for final approval.

"This is a conversion of their existing exploration permit into an FTAA," he said, adding there were currently 16 similar applications pending.

Other Philippine mining projects with FTAAs are the Tampakan copper prospect, controlled by Xstrata, and OceanaGold's Didipio gold and copper mine.

The Philippines is hoping it can lift mining investments to at least $800 million this year from around $630 million in 2008 even as the global slowdown and low metals prices have forced some miners to rethink their strategies.

Shell Philippines Exploration-led group set to start Palawan oil search (http://http://www.philstar.com/Article.aspx?articleId=447631&publicationSubCategoryId=66)
By Donnabelle L. Gatdula Updated March 12, 2009 12:00 AM


MANILA, Philippines - The consortium of Shell Philippines Exploration B.V. (SPEX), South China Resources Inc. and Kuwait Foreign Petroleum Co., is planning to start drilling operations in northeast Palawan within the year.

“SPEX is presently preparing to drill its commitment well on Service Contract (SC) 60 by the second half of this year,” industry sources said.

SPEX holds 55 percent of the contract while KUFPEC and SCR own 30 percent and 15 percent, respectively.

Based on the drilling plan submitted to the Department of Energy (DOE), the group will conduct the seismic and exploration work in a relatively unexplored area of 1.8 million hectares in northeast Palawan.

In January 2006, the Energy Department allowed the consortium to convert its geophysical survey and exploration contract (GSEC 99) to SC 60.

The contract includes a 25-year production term in the event of a commercial oil discovery.

Last year, SPEX officials said they have completed the seismic survey for SC 60.

“The survey enhances understanding the prospectivity of the license area and will determine the need to further explore in the bloc,” SPEX said earlier.

SPEX operates the Malampaya deep water gas-to-power project, the country’s largest natural gas find. KUFPEC is a wholly-owned subsidiary of the, state-owned Kuwait Petroleum Corp.while SCR is a Philippine company involved in, among others, hydrocarbon exploration.

Last year, SPEX completed the first 3D seismic survey as part of a work commitment under SC 60 to explore for oil and gas within the one million-hectare acreage in northeast Palawan

BHP eyes 2nd contract; Exxon, Shell to drill (http://business.inquirer.net/money/topstories/view/20090313-193857/BHP-eyes-2nd-contract-Exxon-Shell-to-drill)
By Amy R. Remo

MANILA, Philippines — BHP Billiton has expressed interest in another service contract in the Philippines, and Exxon Mobil and Shell are pushing through with their drilling plans for this year, Philippine Daily Inquirer sources said.

Otto Energy Ltd. on a 60-percent stake in SC 55, which covers the Marantao offshore prospect in Palawan, which is said to contain an estimated 1.8 trillion cubic feet of gas and 567 million barrels of oil.

Exxon Mobil Corp. is set to drill an exploration well by June, in the Sulu Sea in the southern Philippines under Service Contract 56, the sources also said.

Exxon and Malaysian firm Mitra Energy Ltd. own the license for SC 56.

Shell Philippines Exploration BV (SPEX) is also set to drill a new offshore well by December in northeast Palawan under SC 60.

SPEX owns a 55-percent interest in SC 60. The remainder is owned by Kuwait Foreign Petroleum Co. (30 percent) and South China Resources Inc. (15 percent).

The government expects five to seven wells to be drilled this year, Undersecretary Ramon Oca of the Department of Energy said in a separate interview.

Both Shell and Exxon may drill one or two wells this year, and Nido Petroleum Ltd. is expected to drill two new exploration wells, Oca said.

Aragorn Power and Energy Corp. may drill an onshore exploration well under SC 48, which covers some 748,000 hectares in the northern province of Cagayan, he added.

the whole nation or piling lugar lang?

The whole country

http://www.eia.doe.gov/emeu/cabs/Philippines/Oil.html

http://www.indexmundi.com/energy.aspx?country=ph&product=oil&graph=production


BHP eyes 2nd contract; Exxon, Shell to drill (http://business.inquirer.net/money/topstories/view/20090313-193857/BHP-eyes-2nd-contract-Exxon-Shell-to-drill)
By Amy R. Remo

MANILA, Philippines — BHP Billiton has expressed interest in another service contract in the Philippines, and Exxon Mobil and Shell are pushing through with their drilling plans for this year, Philippine Daily Inquirer sources said.

Otto Energy Ltd. on a 60-percent stake in SC 55, which covers the Marantao offshore prospect in Palawan, which is said to contain an estimated 1.8 trillion cubic feet of gas and 567 million barrels of oil.

Exxon Mobil Corp. is set to drill an exploration well by June, in the Sulu Sea in the southern Philippines under Service Contract 56, the sources also said.

Exxon and Malaysian firm Mitra Energy Ltd. own the license for SC 56.

Shell Philippines Exploration BV (SPEX) is also set to drill a new offshore well by December in northeast Palawan under SC 60.

SPEX owns a 55-percent interest in SC 60. The remainder is owned by Kuwait Foreign Petroleum Co. (30 percent) and South China Resources Inc. (15 percent).

The government expects five to seven wells to be drilled this year, Undersecretary Ramon Oca of the Department of Energy said in a separate interview.

Both Shell and Exxon may drill one or two wells this year, and Nido Petroleum Ltd. is expected to drill two new exploration wells, Oca said.

Aragorn Power and Energy Corp. may drill an onshore exploration well under SC 48, which covers some 748,000 hectares in the northern province of Cagayan, he added.

Even better...:okay:

The country is vast, a big oil and gas strike can happen somewhere... someday!

Mayaman ang pinas sa natural resources. Malay mo, may oil reserve na pala sa ilalim lang bahay mo! :lol:

RP’s biggest gold producer found dumping hazardous substance into Benguet dump (http://www.gmanews.tv/story/152722/RPs-biggest-gold-producer-found-dumping-hazardous-substance-into-Benguet-dump)
03/14/2009 | 05:09 PM

BAGUIO, Philippines — Officials of Mankayan town in Benguet province urged the Department of Environment and Natural Resources (DENR) on Saturday to crack the whip against the country’s biggest gold producer for throwing hazardous substances into the town’s dump.

"They dug our mountains for gold and back filled it with hazardous substances," complained Mankayan Mayor Manalo B. Galuten, after the wastes dumped by Lepanto Consolidated Mining Company (LCMC) into the company’s landfill in Sitio Sapid were found to include asbestos containing the cancer-causing amosite.

Galuten said his office got a copy of a laboratory analysis from New Zealand confirming that the asbestos dumped contain 10 percent amosite.

According to the US Environmental Protection Agency, the amosite variety of asbestos was used primarily as a fire retardant in thermal insulation products in old structures like in ceiling tiles. It is now banned in most countries especially because this form of asbestos is highly friable.

“Friable means it crumbles easily when damaged, therefore releasing airborne fibers which can then be inhaled by those in the vicinity of the material causing a cancer form called mesothelioma, a rare type of cancer that most often occur in the thin membrane lining of the lungs, chest, abdomen and heart," the EPA has explained.

Galuten, now 74-years-old, acknowledged that the huge contribution of LCMC to the Mankayan community in terms of providing employment, but it should not justify the dumping of hazardous wastes.

He said the hazardous waste did not even come from mining operations but imported from other LCMC operational areas.

“I want the company to totally clean their dump and be ready to accept responsibility to whatever sickness the asbestos might cause to exposed residents in the future," he said. “We will file a case to set an example for large companies not to violate local laws or belittle their host communities," he said.

Byron Galuten, son and private secretary of the mayor, said they will ask the DENR to do their job and file appropriate criminal or administrative sanctions against the mining firm.

He noted that residents reported around six dump trucks surreptitiously unloading what appeared to be construction debris from ceiling panels and electrical insulations. LCMC accepted the dumping but not the hazardous content of the waste.

He said the dumping was first noticed in April 2008 when residents reported that around six ten-wheeler trucks dumped what appeared to be construction debris in upper tram in Sapid.

Local police led by Sr. Inspector Fernando S. Botangen in their investigation report later confirmed the dumping of dirty white substances in black cellophane bags that were immediately covered with soil by a payloader.

The Sapid barangay council quoted witnesses as saying the wastes were dumped by Shipside Trucking, an LCMC subsidiary, on April 10 and in 2007 in Sitio Tagumbao, Upper Tram in Barangay Sapid.

The Sapid council then approved a resolution asking LCMC to “cease unloading or dumping of the waste (asbestos)" in their barangay and to relocate the wastes to other sites.

Engineer Magellan Bagayao, LCMC resident manager, admitted responsibility but claimed that the wastes were are pads and cushions from the company’s Makati City office that was renovated.

Bagayao admitted in his letter to Mankayan Vice Mayor Paterno Dacanay on May 7, 2008, that in the past 70 years, “the company is committed in the protection of the environment."

He then promised that “the incident in Sapid will not be repeated."

Bagayao said LCM has employed the services of Servo-Treat Phils., which is accredited by the DENR, to conduct repacking, transport, treatment and disposal of the presumed asbestos containing at their treatment facility in Urdaneta, Pangasinan.

Local officials said they agreed with the treatment plan provided they will witness the hauling and transport.

However, municipal and barangay officials were not informed of the hauling, except for two who accidentally learned about the hauling.

Councilor Mendoza and Barangay Councilman Calapen were told that hauling will resume the following day but when they returned the next day, the whole area was already back filled with soil.

Worse, Sapid residents and officials later learned that only about one-and-a-half load of dirt was hauled as compared to at least six dump trucks that unloaded the construction debris.

Servo-treat President and CEO Dr. Eva F. Vertucio reported to have hauled 8.785 metric tons of soil and construction debris last October 14, 2008 and these were accordingly treated on October 19, 2008. The report also mentioned that the materials are “non-friable asbestos containing materials."

But samples that were brought by the DENR’s Regional Environment Management Bureau together with the local government to the Saint Louis University laboratory in Baguio City were found to have a 50-percent asbestos.

On the other hand, samples brought by the LCMC Department of Labor and Employment’s Occupational Safety and Health Center in Manila, were found not to contain any type of asbestos.

Amid conflicting laboratory results, DENR representatives agreed with Mayor Galuten to invite a third party preferably from an international laboratory licensed by the National Credentialing Agency (NCA) to undertake another test.

Meanwhile, the hauling out of the presumed asbestos containing debris was put on hold while awaiting the laboratory result from an internationally accredited company. GMANews.TV

^^ pwede rin na ang Fort Santiago ay magkaroon ng oil deposit lalo na kapag national interest ang at stake.

Anti-mining residents thank CHR through song (http://newsinfo.inquirer.net/breakingnews/metro/view/20090323-195680/Anti-mining-residents-thank-CHR-through-song)
By Erika Tapalla

MANILA, Philippines – Residents from mining-affected communities serenaded Commission on Human Rights (CHR) officials Monday to express their gratitude to the agency that has listened to their concerns.

"This is not a protest, I want to clarify that. We are expressing gratitude because CHR has been accommodating to us since August last year. At the same time we also want to just remind CHR, not to forget us despite their big, high-profile cases now," Jesus Garganera, national coordinator of the Alyansa Tigil Mina (ATM, Alliance against Mining), told INQUIRER.net.

Led by artist Bayang Barrios, representatives from Nueva Vizcaya, Sibuyan Island in Romblon, and Agusan del Norte held banners and signs of protest against mining activities in their area.

CHR officials stepped out of their offices to listen to the performances and receive flowers from the ATM.

Domingo Marin, resident of San Fernando Romblon, told INQUIRER.net that his son, Armin Marin, was shot dead because he led a rally protesting mining activities in their area.

"October 3, 2007, bale elected councilor siya, tatlong months pa lang [he was an elected councilor for only three months when he was], gunned down by a security guard because he was leading a rally against mining," Marin said.

Marin said that exploration activities in their area have led to erosion and destruction of the rivers.

"May erosion na, nasisira pa yung ilog namin, pati palayan, dahil matarik yung bukid. Wala pa naman gaanong kabigat yung epekto kasi binabantayan namin na hindi matuloy [There is erosion and our rivers are being destroyed, even our rice fields because they are steep. The effects aren’t that bad yet because we are watching them]," Marin said.

On the other hand, Kagawad Peter Duyapat of Barangay (village) Didipio in Kasibu, Nueva Vizcaya, said their homes were in ruins after being demolished allegedly by security guards of mining firm Oceana Gold Philippines.

"Pinilit nila pasukin ang lupa namin, sinira nila bahay namin, lupa, pati mga tulay. Tapos binakuran nila lupa namin sa kanila na daw yun [They tried to forcibly enter our land, destroyed our homes, even bridges. And then they build a fence around our land and claim that it is theirs]," Duyapat said.

ATM urged CHR to continue its support to victims of human rights violations, committed by large-scale mining companies that threatened the lives and properties of marginalized and indigenous peoples.

Garganera said the serenade served as a "kick-off" event for the week-long Anti-Mining Solidarity week hosted by ATM.

ATM is a coalition of mining-affected communities, non-government organizations, private organizations, church, and other support groups against the threat of mining to people’s livelihood.

Amendments to oil deregulation law pushed (http://newsinfo.inquirer.net/breakingnews/nation/view/20090324-195883/Amendments-to-oil-deregulation-law-pushed)
By Lira Dalangin-Fernandez

MANILA, Philippines – Stiffer penalties for oil smugglers and stricter price monitoring mechanisms are among the amendments to the oil deregulation law proposed by a think tank at the House of Representatives.

In their recommendation, Rodolfo Vicerra, director general of the Congressional Planning and Budget Department (CPBD), rejected calls to repeal the law, saying this will be “counter-productive” as it will mean government intervention anew.

“This would require reviving the oil price stabilization fund to be funded again by the taxpayers, which the government, given its fiscal record and outstanding debts, simply cannot afford,” Vicerra said.

The group stressed there was a need to include a provision that would effectively deter oil smuggling by imposing stiffer penalties such as cancellation of business permit, higher fines, and increased number of years of imprisonment.

Quoting the Philippine Institute of Petroleum, the group estimated that the government has been losing P31 billion in revenues to oil smugglers.

The CPBD also proposed stricter monitoring of prices to ensure that these were in step with prices in the world market.

Consumers and transport groups have said that price rollbacks implemented by oil companies were not enough amid the drop of crude prices in the international market.

“To ensure transparency in oil industry pricing, a provision should be included under Section 12 to specifically require the submission of books of accounts and financial documents to ensure that oil companies are not involved in profiteering,” according to the CBPD.

Instead of solely relying on the task force composed of the Department of Energy and the Department of Justice in monitoring the oil industry, the group proposed that the Commission on Audit be included.

The group said the COA as an independent commission would lend “credibility and would fortify the task force’s capability to scrutinize financial documents.”

Certain provisions of the law should also be amended to redefine the concept of anti-competitive agreements and abusive behavior.

Anti-competitive agreements are any agreement, combination or concerted action by refiners, importers and/ or dealers, or their representatives, to fix prices, restrict outputs or divide markets, either by products or by areas, or allocate markets, in restraint of trade or free competition, said the CPBD.

Several bills are pending in the chamber calling for either the repeal or amendment of the oil deregulation law.

Aussie firm gets partner in Yakal oil field (http://http://www.manilastandardtoday.com/?page=business2_mar24_2009)
By Alena Mae S. Flores

Kairiki Energy of Australia said yesterday that it has signed a conditional agreement with a private oil and gas investment company to sell its 17 percent interest in a portion of service contract 54 in northwest Palawan.

Kairiki Energy owns a 40 percent stake in the oil exploration area while Nido Petroleum Ltd. holds 60 percent.

SC 54 covers the Yakal and Tindalo oil discovery fields, which have potential reserves of over 35 million barrels of oil.

ISIS Petroleum Consultants Pty Ltd. earlier reported that Yakal had potential reserves of up to 10.7 million barrels while Tindalo had 24.5 million barrels with a recovery factor of 35 percent and 45 percent, respectively.

Kairiki Energy under the agreement will retain a 23 percent stake in the concession after the deal with the undisclosed oil and gas company is finalized.

The company also said that the exploration area would be divided into SC 54-A covering the concession near the shore and SC 54-B away from the coastline.

“Kairiki will retain a 23 percent interest in the inboard portion of SC 54 [SC 54-A] and a 40 percent interest in the remainder of SC 54 [SC 54-B],” the company said.

The company said the investors would earn a 17 percent interest in SC 54-A by reimbursing Kairiki Energy $7 million of its past costs, plus funding the next $6 million of Kairiki’s remaining 23 percent share of the SC 54-A work program.

“The investors are particularly experienced in drilling and engineering operations and strategically aligned to deliver first oil by early 2010 from the shallow water portfolio,” Kairiki Energy said.

It said the farm-out would retroactively take effect from March 1 but was conditional on finalization of a formal farm-out agreement by April 15.

“We are extremely pleased to have entered into an agreement to farm down part of our interest in the inboard portion of SC 54, retaining a material equity position in both the inboard and outboard portions of SC 54, so shortly after completing the successful drilling campaign in late 2008,” said Laurie Brown, Kairiki Energy’s managing director.

He said the transaction would bring Kairiki Energy one step closer to realizing its goal of delivering a production revenue stream in the near term and was consistent with the company’s strategy to acquire projects with relatively low risk, undertake extensive technical work and introduce a partner of strategic value to assist in the development of those projects.

Govt signs $3-b mining deal (http://http://www.manilastandardtoday.com/?page=business1_mar24_2009)
By Othel V. Campos

Intex Resources Philippines Inc., a unit of Intex Resources ASA of Norway, yesterday signed a $2.95-billion agreement with the Philippines to develop a nickel reserve on an area straddling Occidental and Oriental Mindoro provinces.

Erlend Grimstad, chief executive of the local Intex unit, said Environment Secretary Lito Atienza signed the production and sharing agreement, which will pave the way for start of commercial production as early as 2012.

Intex’s local partner in the Mindoro mining project is Aglubang Mining Corp., the holder of the minerals production and sharing agreement with the Philippine government.

“We hope to finish the definitive feasibility study by November this year and commence with the construction by late 2010 once we have the financing in place by early 2010,” Grimstad said in a phone interview.

An initial feasibility report predicted more deposits than initially estimated on the area.

An estimated annual output of 40,000 metric tons “appears to have been conservative” based on “extensive” testing, the Oslo-based metals explorer said on Jan. 21, citing a feasibility study. Intex had deferred completing the study to the fourth quarter of this year from the first because of the global credit crunch.

A high-pressure acid leach facility will be included in the mine and will be able to produce 80,000 tons of nickel and 3,700 tons of cobalt annually. Construction and development is scheduled until 2011, with commercial operations starting the next year.

Intex plans to spend $2.05 billion for the first stage of the project and $900 million for the second phase. The company, however, appeared to have reduced its estimate for capital expenditures due to low metal prices.

“From they submitted, Intex will now be spending $2.5 billion,” said Mines and Geosciences Bureau chief Horacio Ramos.

He said the investments would include expenses for the processing, fertilizer and power plants.

Intex plans to tap the capital market to partly fund the project.

“We’re hoping to have on board a strategic partner after we finish the definitive feasibility study and secure an environmental compliance certificate by the second quarter of next year,” Grimstad said.

He said the parent company was finalizing a mixed financing package that included the sale of shares, entry of a strategic partner and borrowings from international banks.

A pre-feasibility study completed by Aker Solutions Australia in December 2007 confirmed the viability of building a nickel processing plant that could produce 40,000 tons a year.

Canatuan ships out first copper produce (http://business.inquirer.net/money/breakingnews/view/20090331-197214/Canatuan-ships-out-first-copper-produce)
By Abigail L. Ho

MANILA, Philippines -- TVI Resource Development (Philippines) Inc., an affiliate of Canadian mining firm TVI Pacific Inc., has completed its first shipment of copper concentrates from its Canatuan mine in Zamboanga del Norte.

The shipment was delivered to Chinese smelter MRI Trading AG under a multi-million-dollar copper offtake agreement, the company said in a statement on Tuesday.

The 5,350-ton shipment, completed last Friday, paved the way for MRI’s remittance within the week of an initial payment of $4.8 million to TVIRD.

TVIRD will use the amount for its working capital and to cover operating expenses at its Canatuan mine.

"This is a major milestone event for TVIRD and its stakeholders. TVIRD has successfully overcome many obstacles over the last two years, when the Canatuan Sulphide Project was initiated," TVIRD chair and chief executive Clifford James said.

"While challenges in the marketplace still exist, we are confident that the cash flows to be generated by TVIRD’s copper concentrate production will enable us to further (pursue) the overall development of the company," he added.

DOE to bid out more oil exploration areas (http://http://www.philstar.com/Article.aspx?articleId=454225&publicationSubCategoryId=66)
By Donnabelle L. Gatdula Updated April 02, 2009 12:00 AM


MANILA, Philippines - The Department of Energy (DOE) will bid out more oil exploration areas in the Visayas and Mindanao, a ranking DOE official said.

Energy Undersecretary Ramon Oca told reporters the agency is currently in the process of coming up with a new set of guidelines to fasttrack the approval of new exploration contracts.

“This will encourage new investors to explore,” Oca said, noting that the bidding for five or six new contracts for oil exploration will likely be held by the second quarter of the year.

Aside from the contracting round for oil exploration, the DOE will also offer up to 35 areas for coal exploration within the first half of this year, as well as new areas for geothermal exploration.

But the DOE official said they would have to study the impact of the implementing rules and regulations of the Renewable Energy Act on geothermal development before launching the Philippine Energy Contracting Roand (PECR) for geothermal exploration areas.

He noted that under the new law, some fiscal incentives have to be incorporated in the geothermal contracting round.

“Under the new Renewable Energy Act, there are some amendments to the law especially in terms of incentives and fiscal regime, so we have to look at that. We have to come up with a new model for the geothermal energy contracts. We should now incorporate the new provisions of the law,” he said.

The new guidelines, he said, would also speed up the process of contract approval to effectively trim down the number of days that approval of an exploration contract is released.

Pitkin Petroleum Ltd of the UK, for instance, has to wait two years before it is awarded a contract. However, it was explained that it normally takes more time for a foreign company to sign a contract as it has to undergo approval process from Malacañang.

“We would want to speed up the process so that the investors will continue to invest in the country’s upstream development,” Energy Secretary Angelo Reyes said.

Another area that needs to be reviewed and studied to streamline the approval process is the identification of exploration areas from both the national and local government, Oca said.

Group asks for NEDA documents on oil pricing (http://newsinfo.inquirer.net/breakingnews/nation/view/20090423-200938/Group-asks-for-NEDA-documents-on-oil-pricing)
By Erika Sauler

Asks court to subpoena gov’t document

MANILA, Philippines--A group of lawyers has asked a Manila court to subpoena the National Economic and Development Authority's documentary basis for saying that oil products were overpriced.

In a hearing on Thursday at the Manila Regional Trial Court Branch 26, Vladimir Cabigao of the Social Justice Society (SJS) said that the NEDA has been reported as saying petroleum products were overpriced by at least P8.

The SJS has a pending case against Petron, Shell and Chevron which questions the so-called Big 3 oil firms' pricing schemes.

The counsel for Shell and Chevron objected, claiming that the recent NEDA report was irrelevant to the case.

"We're talking about price increases way back 2003 which was already resolved by the [Departments of Justice and Energy] Task Force," the lawyer for Shell said.

Cabigao then said he would request for NEDA documents prior to 2003. Presiding Judge Silvino Pampilo Jr. ordered Cabigao to make a written request identifying the documents to be subpoenaed.

"The problem is that the violation [of the Oil Dereglation Law] is continuing," Cabigao told the Inquirer after the hearing.

Philex profit drops 57% on lower metal prices (http://http://www.philstar.com/Article.aspx?articleId=464893&publicationSubCategoryId=66)
By Zinnia B. Dela Peña Updated May 07, 2009 12:00 AM


MANILA, Philippines – The country’s biggest mining firm Philex Mining Corp. reported a 57-percent drop in net profit for the first three months this year to P445.7 million, mainly due to lower copper prices and metal production.

In a report to securities regulators, Philex said operating revenues fell 39 percent to P2 billion owing to a 46 percent decline in realized copper price to $1.93 per pound.

“While the global economic crisis saw the realized price for copper start to fall in the second half of 2008 and staying lower in the first quarter of 2009, the realized price for gold was at almost the same at $853 per ounce in 2009 versus 2008. Lower production volume, however, largely caused gold revenue to decline by 13 percent from last year,” Philex said.

From P1.8 billion in 2008, the company’s net operating income went down to P530 million.

The company also reported a P35.1-million net loss from foreign exchange transactions due to a higher peso-dollar closing rate of 48.419 as of March 31, 2009 from 47.52 as of end-December 2008.

Philex also recorded a loss of P190.6 million from gold and currency hedging during the period under review compared to a gain of P144.1 million from currency.

The company’s outstanding currency forward contract at the end of the quarter amounted to $24 million, with weekly maturity of $1 million at the forward rate of P42 per $1 maturing up to September 2009, and with earlier termination provisions when the target profit is achieved but doubling of the notional amount if the fixing rate is higher than the forward rate.

As of March 31, 2009, Philex had total assets of P8.3 billion, 34 percent lower than the P12.5 billion balance at the beginning of the year, mainly because of the decreases in cash.

But Philex said it expects its net profit to reach up to P4 billion this year on the assumption that copper prices hit $2.5 per pound and gold $1,000 per ounce.

Should current prices stay, Philex’s net earnings are forecast to reach P2.8 billion or at the same level as last year.

Philex has alloted P2 billion for its capital expenditures this year, P885 million of which will go to exploration projects.

The company is looking at other possible mining investments in Asia Pacific like Indonesia and Australia.

Typhoon halts Galoc oil production (http://http://www.manilatimes.net/national/2009/may/08/yehey/business/20090508bus14.html)

Production at the Galoc oil field has been suspended because of adverse weather conditions.

Galoc’s consortium members announced the temporary halt in the field’s production on Thursday because of the presence of Typhoon Chan-Hom, which is passing north of the field and packing winds of 300 nautical miles.

Galoc is located in service contract 14C, 290 meters below sea level and approximately 65 kilometers Northwest of Palawan. The oil field is estimated to contain 10 million barrels of recoverable oil reserves but Singapore’s Gaffney and Cline Associates, which conducted its owns assessment, reported that the field could contain up to 49 million barrels.

The field is operated by Galoc Production Co. (GPC), which owns 58.29 percent of the consortium.

Its partners are Nido Petroleum Ltd., which has a 22.8- percent stake; Oriental Petroleum and Minerals Corp., 7.57 percent; The Philodrill Corp., 7.03 percent; Forum Energy Philippines Corp., 2.27 percent; Alcorn Gold Resources Corp., 1.53 percent; and PetroEnergy Resources Corp., 1.03 percent.

Joanne Williams, Nido Petroleum deputy managing director, said that GPC is already making preliminary preparations in the event that it becomes necessary to disconnect Galoc’s floating, production, storage and offloading (FPSO) vessel from its mooring at the oil field because of the incoming typhoon.

It would be recalled that in December last year, GPC also suspended production after the FPSO was disconnected from the mooring and riser system due to bad weather which made it risky to continue operating.

It took GPC two months to re-connect the FPSO and resu*me oil production, which began in October.

Despite this, production from the Galoc field has already reached more than one million barrels of oil. The field has been producing steadily at around 16,000 barrels a day.
-- Euan Paulo C. Añonuevo

New Caledonia eyes RP’s manpower to set up nickel plant, infra projects (http://http://www.businessmirror.com.ph/05142008/economy07.html)
By Estrella Torres
Reporter

OFFICIALS of New Caledonia, a nickel-rich French territory, are in the country to seek economic cooperation with the Philippines to augment its needs for human resources for the establishment of another $4-billion nickel plant and other infrastructure requirements.

Alain Descombels, president of the New Caledonia commission for economic development, said the visit seeks to explore new business opportunities with the Philippines and future partnership on several areas like education, maritime and information technology.

He said there are now around 2,000 Filipino workers in New Caledonia who are working in the first nickel mining plant that costs $4 billion. These workers have been in New Caledonia for the last 18 months.

“A new [mining] plant will be built in 2009 to be able to make New Caledonia the world’s top nickel producer,” said Descombels in a briefing with Philippine media held on Tuesday at the Alliance Francaise de Manille in Makati City. “We would be needing another 2,000 new Filipino workers for this mining project, also estimated to be worth $4 billion.”

The delegates from New Caledonia, composed of the members of assemblies of the South and Loyalty provinces, will also visit the ship Betico II, which they ordered from FBMA Marine Inc. of the Aboitiz firm.

The officials of the French territory will meet with the French business community in the Philippines and selected business groups in Cebu to discuss business opportunities in the country.

“The objective of the visit is to know the professions that would be available from the Philippines. We are in need mostly of technicians for our mining plants because we have a shortage of qualified technicians,” said Descombels.

Georges-Gaston Feydeau, counselor for cultural affairs of the French Embassy in Manila, said the French government is hopeful to conclude an immigration agreement with the Philippines to augment the human resource-requirements in sectors like health care, electronics, food and beverages, as well as tourism.

“We have been negotiating an agreement with the Philippines since December last year to increase the number of Filipino workers in France, especially in health care where we will be needing nurses and health-care providers,” said Feydeau at the press briefing.

France and other European countries are similarly facing a decline in population growth, prompting them to tap the Philippines and other Southeast Asian countries to address the health-care requirements of their aging population.

Manila Standard

May 11, 2009

New cement plant ready

Eagle Cement Corp., a company owned by San Miguel Corp. chairman Eduardo Cojuangco and president Ramon Ang, will start producing cement by the second quarter of 2010.

Eagle Cement is putting up a P6.7-billion cement plant in Akle, San Ildefonso, Bulacan to supply the requirements north of Manila, a company official said Friday.

“Metro Manila is a market saturated with many cement plants already. Geographically there is no cement plant in the north. That’s why we want to concentrate more in provinces like Nueva Ecija and Nueva Vizcaya,” said company treasurer and major shareholder Ricardo Yabut.

The cement plant, based on a company presentation with the Mining and Geosciences Bureau, is expected to go on stream by the second quarter of 2010. Construction started in March last year.

The plant is expected to produce 1.5 million metric tons of cement, or about 35.2 million bags yearly. Daily output is expected at 4,000 MT, or 100,000 bags of cement.

A recent validation of the bureau showed resources at the Akle mine at 232.7 million MT of raw limestone, silica and shale. Mine life is expected to last at least 75 years.

Eagle Cement is funding the project through P3.6 billion in syndicated loans and P3.1 billion in equity.

Yabut said the cement plant planned to sell cheaper cement in the local market using its savings from duty-free importation of equipment.

“We’re planning to sell at 15 to 20 percent lower-than-prevailing market prices,” he said.

Local cement costs about $200 per MT, or about P200 to P230 per bag.

Yabut said the government’s growth stimulus package and pump-priming activities had effectively revived the construction industry.

“Our long-term plan to provide for a second line, another 1.5 million MT [of capacity] should there be more demand for cement. We’re allowed to do that as per our approved ECC [environment compliance certificate],” he said.

Yabut said the construction of the first line had a provision for expansion that would cost an additional P2.5 billion.

The company has no plans yet to go into metals mining.

Eagle Cement earlier signed an agreement with Union Cement Corp. headed by executive vice president Francisco Viray for an amicable settlement of their mining claims covering some 4,000 hectares at Barangays Akle, Narra and Alagao in San Ildefonso, Bulacan. Othel V. Campos:)

Galoc oil output resumes after typhoon (http://business.inquirer.net/money/breakingnews/view/20090513-204814/Galoc-oil-output-resumes-after-typhoon)

SINGAPORE--Production has resumed at the Galoc offshore oilfield the Philippines after a six day-interruption for the first of several expected shutdowns during the monsoon, operator Galoc Production Co. (GPC) said on Wednesday.

Output has restarted at around normal rates of 13,000 barrels per day (bpd), equity partner Otto Energy said in a related statement, after the Floating Production Storage and Offloading (FPSO) facility was disconnected on May 7 ahead of the passage of Typhoon Chan-Hom.

Galoc's startup and debut last year were delayed and plagued by disconnection and reconnection problems when bad weather hit.

The issues have been resolved with the installation of enhanced mooring arrangements, Otto Energy CEO Alex Parks told Reuters in January.

But the typhoon season will continue to force temporary shutdowns, GPC said in a statement.

"Such operations are likely to be undertaken on several occasions over the coming southwest monsoon/typhoon season which lasts from June to November in a typical year," GPC said.

The death toll from floods and mudslides triggered by a typhoon in the northern Philippines has more than doubled to 36, with 12 people still missing, the government said on Sunday.

Oil production from Galoc was suspended from mid-December to February for repairs to the riser system and to install a Hold Back Mooring System.

Galoc, off southwestern Philippines, was the first major field to come onstream last year in the underexplored country since the 1990s.

It yields light sour Palawan Light crude -- similar to Abu Dhabi grades -- of which five 300,000-350,000 barrel cargoes have been lifted since it came onstream and sold to Asian refiners.

GPC, in which European trader Vitol has a 68.6 percent stake and Australian oil firm Otto Energy a 31.4 percent interest, is the operator of the field, with a 58.29 percent share.

The remaining 41.71 percent is split between Nido Petroleum with 22.28 percent, and several Philippine partners.

SPEX to start drilling in northeast Palawan (http://www.philstar.com/Article.aspx?articleId=473853&publicationSubCategoryId=66)
By Donnabelle L. Gatdula

MANILA, Philippines - Shell Philippines Exploration B.V. (SPEX), the local oil exploration unit of Royal Dutch Shell, will start drilling activities at its Service Contract (SC) 60 in Northeast Palawan.

SPEX is also the operator of one of the largest natural gas drilling projects in the country the $4.5-billion Malampaya deep water gas-to-power project.

Joining SPEX with a majority 55 percent stake in SC 60 are Kuwait Foreign Petroleum Co. (30 percent) and South China Resources Inc. (15 percent).

Publicly-listed South China disclosed to the Philippine Stock Exchange (PSE) that they have commissioned the services of a drillship, the Norwegian Frontier Phoenix, for oil and gas exploration in SC 60.

Norwegian Frontier Phoenix is owned by Frontier Drilling. The company is an independent supplier of drilling and production services for the oil industry such as conventional drillships, semi-submersibles and floating production, storage, offloading vessels.

According to SPEX officials, Frontier Phoenix will arrive in the Philippines in the latter part of the year.

South China vice president for operations David Baladad told the PSE that the drillship “will proceed to Northeast Palawan upon completion of its five-well program in Malaysia.”

“This is the reason why an exact date on drilling cannot be given and can only be at best estimated,” Baladad said.

South China said SC 60 is one of the country’s most promising areas in terms of potential for large accumulations for petroleum.

“A rigorous study of the 3D seismic data was conducted and highlighted a number of leads, several of which have been elevated to prospect status,” the company said in a separate disclosure.

In July last year, South China, together with SPEX and Kuwait Petroleum entered the second sub-phase of SC 60.

“The objective is to continue and further the exploration of the block with a commitment to drill one well during the sub-phase. The second sub-phase is valid until Feb. 10, 2010,” South China said.

Sources earlier said SPEX is “preparing to drill its commitment well by the second half of this year.”

Under its contract with the Department of Energy (DOE), the consortium will conduct the seismic and exploration work in a relatively unexplored area of 1.8 million hectares in Northeast Palawan.

Mataas na naman presyo ng gasolina at diesel...bwisit!:bash:

Cartel kasi!:bash:

Atienza bares $487-million mining investments (http://www.philstar.com/Article.aspx?articleId=476694&publicationSubCategoryId=66)


MANILA, Philippines - Environment and Natural Resources Secretary Lito Atienza reported the generation of a total of $ 487.11 million in new investments from the mineral resources sector in 2008, as he asserted that the department “has taken great strides” in the management and sustainable development of the country’s natural resources.

On the occasion of the DENR’s 22nd anniversary, Atienza also said that the mining sector created 837 new jobs last year from the mineral resources sector, including exploration, operation, construction, and development activities in priority mining projects.

“The DENR has taken great strides in the management and sustainable development of the country’s natural resources, particularly in the areas of minerals and upland development,” Atienza noted.

According to him, the DENR’s accomplishments in the past year has been focused on providing investments and jobs to thousands of Filipinos, particularly those displaced by the current economic downturn.

Apart from generating jobs from various mining projects, Atienza said the DENR recorded distribution of 121,424 land patents, covering an area of 109,722 hectares nationwide – a more than 10-percent increase on the target set by President Arroyo.

Atienza also said that the DENR has identified a total of 229 prospective school sites and 184 housing sites. It has also delineated around 10,000 kilometers of forestland boundary and completed the geo-hazard mapping of 400 municipalities to pinpoint flooding and landslides prone areas.

And to continuously provide alternative income to marginalized communities, Atienza said the DENR has also processed 1,047 contracts or permits to poor families living in foreshore areas nationwide.

Atienza further reported that the upland development program, which the agency is pushing full blast this year, will generate more than 52,000 jobs nationwide while more than 5,000 families have already benefited from livelihood projects such as jatropha plantation and butterfly farming in Marinduque, and agroforestry development projects with high value crops and fruit tree production in Negros Oriental, establishment of rubber plantation with upland rice and corn in Zamboanga del Norte and rubber-based agroforestry development project in Sarangani.

“All government programs and projects were all directed towards hunger mitigation, poverty reduction as well as protecting the country from the global economic crisis that is now hurting the rich and powerful countries,” Atienza said.

Galoc sells output to South Korea oil refiners (http://www.philstar.com/Article.aspx?articleId=477679&publicationSubCategoryId=66)


MANILA, Philippines - Galoc Production Co. (GPC) has sold its recent oil produce to GS Caltex Corp., one of the leading oil refiners in South Korea.

GPC sources said it delivered some 300,000 barrels of crude produced from the Galoc oil field in offshore Northwest Palawan basin to GS Caltex early last week.

“There was a cargo offloading last Monday intended for Korea. Buyer is Caltex,” the source ssaid.

The first oil produced from the field was sold by GPC to Petron Corp. last year.

Galoc, which started production in October 2008, has an initial oil estimate reserves of about 10 million barrels.

The oil field, operated by GPC which controls a 58.29 percent stake, was the country’s first oil development project after so many years.

GPC is a joint venture between the Vitol Group and Otto Energy Ltd. Other partners in the project are Nido Petroleum Ltd, Oriental Petroleum and Minerals Corp./Linapacan Oil Gas & Power Corp., The Philodrill Corp., Forum Energy Philippines Corp., Alcorn Gold Resources Corp. and PetroEnergy Resources Corp.

The company had temporarily stopped production in late December due to poor weather conditions but when it resumed operations in February, two shipments in March and April of 207,764 barrels and 343,430 barrels, respectively, have been offloaded and delivered to buyers in Korea and Japan.

GPC had sold and delivered over 400,000 barrels of crude to Korea, 300,000 barrels to Thailand and 300,000 barrels to local refiner Petron last year before the temporary shutdown in December 2008.

The company also signed supply agreements for the forward sale of two shipments totaling some 650,000 barrels with two different buyers in Korea.

According to GPC, the first schedule to the same customer was done in early May and the second one this month.

Monday, June 22, 2009
Kairiki Energy raises $7 million to commercialise Philippine oil discovery

http://www.proactiveinvestors.com.au/companies/news/1786/kairiki-energy-raises-7-million-to-commercialise-philippine-oil-discovery-1786.html

Emerging oil producer, Kairiki Energy (ASX: KIK) has been able to raise a handy $7 million via a placement of 50 million shares at 14 cents per share. (Last sale was 17.5 cents).

The company has European, Asian and Australian shareholders.

Funds will be used to commercialise the company's Philippines discoveries. KIK has a 100% success rate in back-to-back maiden discoveries in Northern SC54 in the Philippines. There is a farm-down in progress on SC54A, resulting in a cash injection of US$7m to KIK & carry for next US$26m of program, beyond First Oil (c.US$20m). KIK retains 23% in SC54A, and retains full 40% in outboard SC54B.

Independently assessed mean resources in place of 19mmbbls oil in 2 targets, recoverable at recovery rate 7.8mmbbl at 40% recovery rate.

First Oil & cash flows are expected in SC54B within 12 months. With a self funding strategy potential thereafter.

Galoc operator told to resume production (http://www.philstar.com/Article.aspx?articleId=480671&publicationSubCategoryId=66)
By Donnabelle L. Gatdula

MANILA, Philippines – The Department of Energy (DOE) has ordered Galoc Production Co. (GPC) to proceed with commercial oil production at the Palawan oil field after the successful completion of the extended production test (EPT).

Energy Secretary Angelo Reyes told GPC to immediately terminate the EPT operation after the DOE concluded that sufficient data have already been obtained and the viability of the field has been established.

Reyes said GPC could now proceed with commercial production of the Galoc field as indicated in the plan of development approved by the agency in March 2006.

He also stressed that starting June 20, 2009, the National Government will receive its 60-percent share of the revenue from sales generated by the Galoc field.

“Of course, this is only the start for future oil production in the country. This is a clear indication that the country is a viable investment location and we hope that this will entice future investors to set up their businesses here,” Reyes said.

In 2008, the Galoc field produced 20,000 barrels a day in the first 90 days of commercial production.  

Once production has stabilized following flow testing to be undertaken over the coming weeks, production is expected to reach about 20,000 bpd from the two wells with an average of about 17,000 bpd over the remainder of 2008.

The value will provide for six percent of the country’s daily oil demand. The utilization of indigenous resources has been advocated by the DOE to promote savings in tariffs and importation duties.

GPC said the “reservoir performance data obtained during the EPT indicate that the production from the Galoc field is commercially viable” and that the data obtained proved “invaluable in providing sufficient confidence in reservoir performance to justify commencement of long-term production.”

Brazilian mining giant to invest $600 million in Masbate (http://www.philstar.com/Article.aspx?articleId=480672&publicationSubCategoryId=66)
By Marvin Sy

MANILA, Philippines – President Arroyo witnessed the signing of several agreements on agriculture, energy and a $600- million mining deal in the second day of her state visit to Brazil yesterday.

Press Secretary Cerge Remonde said that Brazilian mining giant Companhia Vale Do Rio Doce has committed to invest $600 million for a copper and gold exploration project in Masbate.

The mining firm is one of the biggest in the world and is known to be the world’s biggest producer of iron ore and pellets.

A Memorandum of Understanding was also entered into between the Philippine Chamber of Commerce and Industry (PCCI) and the National Confederation of Industry (CNI) of Brazil.

Remonde noted that the MOU would seek the possibility of starting a program wherein the Philippines and Brazil will share knowledge on renewable energy.

Still in the field of renewable energy, the Department of Energy entered into an MOU with the Brazilian Ministry of Mines and Energy on bioenergy cooperation.

On agriculture productivity, the Department of Agriculture signed an MOU with the Agronomics Institute of Camoinas for bioethanol and sugarcane processing.

The DA also signed a joint statement with the Girolondo Breeders Association of Brazil that would pave the way for the donation of cattle semen for the production of a hybrid variety which Remonde said would benefit the Philippine dairy industry.

President Arroyo also witnessed the signing of an MOU between the Philippine Agricultural Development and Commercial Cooperation and the Brazilian Agricultural Research Corp.

Remonde said that with the Philippines is well on its way to becoming 60-percent energy self-sufficient through the development of renewable energy sources.

He said that Brazil, as the world’s recognized leader in renewable energy technology, is the Philippines’ best partner in this endeavor.

During the President’s visit to Brazil, she also witnessed the signing of an agreement on the renumerated employment of dependents of diplomatic, consular, administrative and technical personnel.

The President also took time to drop by Pernambuco, Recife for the inauguration of the newly-expanded Tecon Suape Container Yard of the International Container Terminal Services Inc.

During her visit there, the President expressed her gratitude to the overseas Filipino workers as represented by the 10 seafarers employed by Hapag Lloyd who were on their way to Sao Paolo in Brazil from Canada.

The President inaugurated the expanded container yard before she left for the capital Brasilia.

ICTSI is a leading developer of international ports and terminals with a global port network spanning 13 countries.

Headquartered in the Philippines, ICTSI is on its 20th year of operation, and continues to pursue container terminal projects around the world.

The President started her state visit in Brazil last June 22 and would be in the country until today.

It is the first state visit by a Philippine President.

Before arriving in Brazil, the President went on a four-day official visit to Japan.

Brazilian mining giant to invest $600 million in Masbate (http://www.philstar.com/Article.aspx?articleId=480672&publicationSubCategoryId=66)
By Marvin Sy

MANILA, Philippines – President Arroyo witnessed the signing of several agreements on agriculture, energy and a $600- million mining deal in the second day of her state visit to Brazil yesterday.

Press Secretary Cerge Remonde said that Brazilian mining giant Companhia Vale Do Rio Doce has committed to invest $600 million for a copper and gold exploration project in Masbate.

The mining firm is one of the biggest in the world and is known to be the world’s biggest producer of iron ore and pellets.

A Memorandum of Understanding was also entered into between the Philippine Chamber of Commerce and Industry (PCCI) and the National Confederation of Industry (CNI) of Brazil.

Remonde noted that the MOU would seek the possibility of starting a program wherein the Philippines and Brazil will share knowledge on renewable energy.

Still in the field of renewable energy, the Department of Energy entered into an MOU with the Brazilian Ministry of Mines and Energy on bioenergy cooperation.

On agriculture productivity, the Department of Agriculture signed an MOU with the Agronomics Institute of Camoinas for bioethanol and sugarcane processing.

The DA also signed a joint statement with the Girolondo Breeders Association of Brazil that would pave the way for the donation of cattle semen for the production of a hybrid variety which Remonde said would benefit the Philippine dairy industry.

President Arroyo also witnessed the signing of an MOU between the Philippine Agricultural Development and Commercial Cooperation and the Brazilian Agricultural Research Corp.

Remonde said that with the Philippines is well on its way to becoming 60-percent energy self-sufficient through the development of renewable energy sources.

He said that Brazil, as the world’s recognized leader in renewable energy technology, is the Philippines’ best partner in this endeavor.

During the President’s visit to Brazil, she also witnessed the signing of an agreement on the renumerated employment of dependents of diplomatic, consular, administrative and technical personnel.

The President also took time to drop by Pernambuco, Recife for the inauguration of the newly-expanded Tecon Suape Container Yard of the International Container Terminal Services Inc.

During her visit there, the President expressed her gratitude to the overseas Filipino workers as represented by the 10 seafarers employed by Hapag Lloyd who were on their way to Sao Paolo in Brazil from Canada.

The President inaugurated the expanded container yard before she left for the capital Brasilia.

ICTSI is a leading developer of international ports and terminals with a global port network spanning 13 countries.

Headquartered in the Philippines, ICTSI is on its 20th year of operation, and continues to pursue container terminal projects around the world.

The President started her state visit in Brazil last June 22 and would be in the country until today.

It is the first state visit by a Philippine President.

Before arriving in Brazil, the President went on a four-day official visit to Japan.

the best news so far this year in mining industry....:cheers:

^^^^
Brazil just like Argentina is also famous for their agriculture especially their cattle industry...I hope in the future the Philippines will study the model of these two Latin American giants.

Philex reports major oil, gas discovery in Vietnam (http://http://www.philstar.com/Article.aspx?articleId=481947&publicationSubCategoryId=66)
By Donnabelle L. Gatdula Updated June 29, 2009 12:00 AM


MANILA, Philippines - Philex Mining Corp., the country’s largest copper and gold mining firm, announced the discovery of a major oil and gas field by its affiliate Pitkin Petroleum Plc in offshore Vietnam.

This is the first major oil and gas discovery in Asia this year and shows the soundness of the firm’s decision to diversify from copper and gold mining into the oil exploration business.

The investment should provide the company with a new revenue stream on top of its copper and gold sales. Philex has small interests in Galoc and the Abouma field in Gabon, which are already producing oil, through PetroEnergy Resources Corp.

In a disclosure to the Philippine Stock Exchange (PSE), Philex said Pitkin had successfully completed the drill stem testing of the Ca Rong Do (Red Emperor) discovery well on Block 07/03 in offshore Vietnam which flowed oil at a combined rate of 3,265 barrels per day plus 8.1 million standard cubic feet of gas per day.

Philex owns 21.1 percent of Pitkin, an international upstream oil and gas exploration and production company focused mainly in the Pacific Rim region, with operations in Vietnam, the Philippines, Peru and the United States.

Operator Premier Oil Vietnam South BV reported earlier that the Ca Rong Do discovery well was drilled to 3,810 meters and intersected about 90 meters of net oil and gas pay within multiple stacked reservoir levels.

Two of the reservoir zones were tested and showed positive results for oil and gas with no water produced from either zone.

Pitkin said a three-dimensional survey is being planned to define the resource potential of the Ca Rong Do discovery and adjacent areas and to determine future exploration and appraisal activity.

The firm plans to drill a second exploration well elsewhere on Block 07/03 by the fourth quarter of this year.

“We are very pleased to have encountered oil and gas with our first well on Block 07/03 and Pitkin’s first well in its international drilling program,” said Pitkin managing director and CEO Art Morado.

He added that the well demonstrates a working hydrocarbon system within this part of the Nam Con Son Basin—upgrading neighboring leads and prospects.

“We look forward to an active exploration program to follow this success, and to progressing our exploration campaigns in Peru and the Philippines,” Morado said.

Pitkin is involved throughout the exploration and production value chain, with interests in production, a potential re-development project and an active exploration program.

With its wholly-owned subsidiary Vietnam American Exploration Co. LLC (VAMEX), Pitkin has a participating interest of 40 percent in Block 07/03. Its partners are operator Premier Oil Vietnam South B.V. (30 percent, Pearl Oil (Ophiolite) Ltd. (15 percent), and Pan Pacific Petroleum (Vietnam) Pty. Ltd. (15 percent).

Government mulls return to downstream oil industry (http://http://www.philstar.com/Article.aspx?articleId=481936&publicationSubCategoryId=66)
By Donnabelle L. Gatdula Updated June 29, 2009 12:00 AM


MANILA, Philippines - After selling a 100-percent stake in Petron Corp., the government is mulling the possibility of engaging anew in downstream oil industry through the publicly-listed subsidiary of Philippine National Oil Co. (PNOC)-PNOC-Exploration Corp. (PNOC-EC).

PNOC-EC chairman Jacinto Paras said the company is exploring this idea to maintain the government’s balance on oil pricing issue.

Paras said if the government will have its own oil company which will engage in retail oil business just like any other new players in the domestic oil market, this will give an assurance that there will be a “check and balance” on oil prices.

“If ever, this company will become the neutralizer (on oil pricing). We just can’t leave this business to private sector. The government should be, by itself, protect the interest of the consumers,” Paras said.

”On my personal view, Petron had played an important role especially when oil prices were so volatile. It served as a government’s guardian inside the industry,” he added.

According to Paras, PNOC-EC’s charter allows it to create an oil company. “It is in our mandate. Unless the government would want to create a new corporation either by legislative or administrative order,” he said.

Asked how investors would react on this proposed move, he said “ it’s going to be just another player in the block.  There are oil companies being put up every now and then.  It will compete just like any other player in the market.”

“What we intend to do is to create competition. If there is real competition in the market, consumers will be assured that they will get the best prices,” he added.

But Paras said this plan, however, would only materialize depending on the decision on the government on PNOC-EC’s privatization.

“This is based on the assumption that EC will not be privatized 100 percent,” he said.

Paras, in expressing his opinion, said it would be “best’ for the government to maintain PNOC-EC as its national oil company.

“It would also ensure that the government would be able to maintain buffer to guarantee stable supply of oil in the country,” he said.

If it will materialize, the PNOC-EC’s downstream oil subsidiary will help maintain the national oil stockfile.

Initially starting out as the Exploration Department of PNOC in April 1975, PNOC-EC was eventually incorporated as a PNOC subsidiary and registered with the Philippine Securities and Exchange Commission on April 20, 1976.

PNOC EC’s shares of stock are 99.78 percent owned by the Philippine government through PNOC, with the remaining 0.22 percent are held by public shareholders.

Sagittarius taps Bechtel for Tampakan study (http://http://www.philstar.com/Article.aspx?articleId=481943&publicationSubCategoryId=66)
By Marianne V. Go Updated June 29, 2009 12:00 AM


MANILA, Philippines - Sagittarius Mines Inc. (SMI) has engaged the services of Bechtel, a global leader in engineering and construction, to conduct a $74-million feasibility study for its Tampakan copper-gold project in Southern Mindanao.

The $74-million feasibility study, which will entail a detailed engineering study, will help determine whether the project will advance to development stage.

The feasibility study is expected to be completed and submitted to the Philippine government by the second quarter of 2010.

The feasibility study is being undertaken even as SMI’s major shareholder, Xstrata engages in possible merger talks with another major mining firm, Anglo American.

According to SMI president Peter Forrestal, “this phase we are embarking on is very significant for SMI and for the future of the Tampakan project.”

He said that the decision to develop a major copper mine at Tampakan will depend on the outcome of the feasibility study which will examine the economic, social and environmental viability of the project.

Forrestal assured that “through all its development stages, the Tampakan project will continue to be run in line with leading environmental and social practices, based on partnership with its stakeholders, to create mutual benefits for shareholders, the communities associated with the project and the Philippines.”

Partners in the Tampakan project include Xstrata Copper (62.5 percent), Indophil Resources NL (34.23 percent) and Alsons Corp. (3.27 percent).

In a related development, Mines and Geosciences Bureau director Horacio Ramos noted that a possible merger between Swiss mining firm Xstrata and British Anglo American will enhance Philippine mining projects in which the two foreign firms have investments in.

Xstrata is a major shareholder in SMI which is developing the potentially rich Tampakan mine.

Anglo American, on the other hand, continues to explore in Surigao.

The two global mining giants had recently announced that they are in possible merger talks.

Xstrata had made the proposal to the board of Anglo American regarding a possible merger.

London-based Anglo American confirmed the talks but hastened to qualify that the talks are very preliminary.

A merger between Xstrata and Anglo American could make the resulting company a world leader in base metals (second in copper, first in zinc and fourth in nickel), the world’s largest producer of platinum, thermal export coal and ferrochrome, and a top-five producer of iron ore and coking coal.

With the global economic slump also adversely affecting the mining sector, mining firms are opting for mergers and consolidation to cut costs.

Flying V eyes partnership with CIIF group for biodiesel project (http://www.philstar.com/Article.aspx?articleId=484084&publicationSubCategoryId=66)
By Marianne V. Go

MANILA, Philippines - Local oil firm Flying V has expressed interest in helping the CIIF (Coconut Industry Investment Fund) Oil Group develop its own biodiesel product.

This was revealed over the weekend by incoming CIIF Oil Group president Jesus Arranza following an exploratory talk with Flying V chairman Ramon Villaviciencio.

Arranza said Flying V, expressed its interest in helping the CIIF produce coco methyl esther (CME) for biodiesel following Arranza’s earlier pronouncement that the CIIF would engage Laguna-based Atson Coco, Inc. to manufacture on a toll-basis CME for CIIF.

Arranza had previously said that he would engage Atson to manufacture a small amount of 50 metric tons of CME a day for the CIIF Oil Group.

Arranza, who is set to formally assume his post this week, had earlier expressed his plan to expand the production of the CIIF Oil Group from its current limited line up of just coconut oil and edible cooking oil.

Initially, Arranza is eyeing biodiesel production and eventually other higher-value products such as lotions.

Additionally, Arranza has already explored the possibility of reviving a law that would once again require local soap manufacturers to use biodegradable coconut oil in the production of soaps and detergents.

Arranza said that he has already talked to Sen. Juan Ponce-Enrile about sponsoring a bill that would once again mandate the use of coconut oil in the production of soaps and laundry detergents.

Using biodegradable coconut oil, Arranza said, would be more beneficial for the environment than the more pollutant alkyl benzene that laundry detergent manufacturers currently use.

Friday, July 17, 2009
Medusa Mining doubles probable gold reserves at Co-O to 500,000 ounces
by Andre Lamberti company news image

In further good news for Medusa Mining (ASX, AIM: MML) shareholders, additional inferred resources have been converted to gold reserves. Probable reserves at the Co-O mine in the Philippines have now doubled to a JORC compliant 500,000 ounces of gold as of June 14 2009, compared with a 249,000 ounces estimate announced in August 2008.

Mine depletion since the 2008 estimate is excluded from the new estimate. This ore reserve will allow an approximate 5 year mine life at a production rate of 100,000 ounces per year.

Managing director Geoff Davis said: “A mine life of 5 years based on reserves is a major achievement for a narrow vein mine, and is the culmination of over 40,000 metres of drilling and over 6,000 metres of underground development that has been completed during the last year."

The probable reserve was estimated from an Indicated Resource of 1,250,000 tonnes at 15.0 g/t gold containing 603,000 ounces of gold. The estimate was based on a gold price of US$900 per ounce and a stope cut-off grade of 3.3 g/t gold.

Medusa said it will maintain this level of reserves on a yearly basis through continuing conversion of inferred resources to reserves as the mine develops.

This latest upgrade to the probable reserve follows yesterday’s announcement of a new resource estimation for the Co-O mine increasing the JORC compliant indicated and inferred resources in the last 6 months by 15 percent to 1,380,000 ounces at 10.8 grams per ton of gold.

It had also boosted the indicated resources category by 25.6 percent to 603,000 ounces, setting the stage for significant resource extensions to the east of the mine with further drilling.

Davis had commented: “The continuing growth of the Co-O Mine resource at a very robust gold grade testifies the quality of this asset. We expect resource growth to continue, especially to the east as more drilling is undertaken.

“This work will focus primarily on extending Co-O’s shallower resources where mine infrastructure can be expanded at low capital costs. In addition drilling will focus on nearby vein systems where there is the real opportunity to make new discoveries.”

Diamond drilling has continued since the past resource estimate announced on January 19 2009 with the aim of infilling and extending the Co-O vein system to depth and along strike. A total of 51 drill holes have been completed, as announced on June 22 2009, since the previous resource estimation and included in the current resource estimation in conjunction with available underground sampling data and excluding mined material.

The first modelled vein (East Agsao Vein) east of the Agsao River has been included in this estimation. It is anticipated that significant resources will be defined as drilling along the veins in this area progresses and continuity increases.

Resource drilling is continuing with the aim of defining several poorly defined veins within the mine area, to expand the resources to the east and to undertake first pass drilling on other veins, Medusa added.

Earlier this month Standard & Poor’s added Medusa Mining to both the S&P/ASX 200 and S&P/ASX All Australian 200.

Companies that are added to the index may encounter increased demand for the company's shares, as some institutional investors may re-weight their portfolio to align with the index constituent companies.

Davis had commented on the news that the inclusion in the S&P/ASX 200 index was a major achievement. "We believe the company, with its world class asset in the Philippines, will continue to deliver positive results for many years to benefit not only shareholders but also for the many communities in which it operates.”
http://www.proactiveinvestors.co.uk/companies/news/6691/medusa-mining-doubles-probable-gold-reserves-at-co-o-to-500000-ounces-6691.html

Billiton takes part in Sulu Sea oil search
By Donnabelle L. Gatdula (The Philippine Star) Updated September 05, 2009 12:00 AM

MANILA, Philippines - Australian oil and mineral mining giant BHP Billiton (BHPB) will take part in Service Contract 56 (SC 56) in the South Sulu Sea, the Department of Energy (DOE) said.

The exploration unit of the world’s largest mining firm will join existing SC 56 contractors ExxonMobil Exploration and Production Philippines B.V. and Mitra Energy, both holding 50-percent equity in the project.

Mitra will assign half of its interest in SC 56 (25 percent) to BHPB.

According to the DOE, this will bring BHPB, the world’s largest integrated resources company, into the Philippine upstream sector, working alongside ExxonMobil, the world’s largest publicly-listed international oil and gas company.

The DOE said it is very pleased that companies of such high caliber and expertise recognize the potential of the Philippine oil and gas sector, and looks forward with keen anticipation to execution of the SC 56 commitments.

Drilling of the first commitment well, the DOE said, is scheduled to commence this September.

SC 56 is located 900 kilometers southwest of Manila, 200 kilometers northwest of the Bongao municipality and 65 kilometers from the town of Mapun in the province of Tawi Tawi of the Autonomous Region of Muslim Mindanao (ARMM).

The DOE said SC 56 is part of the Philippine government’s efforts to encourage investments in the energy sector leading to energy security for the country. The exploration phase will be undertaken at no cost to the country, with all risks borne by the contractors, ExxonMobil, Mitra and BHP Billiton.

'Anti-mining protests sending wrong signals to investors'
By Marianne V. Go (The Philippine Star) Updated September 08, 2009 12:00 AM

MANILA, Philippines - The Chamber of Mines of the Philippines, Inc. (CMP) warned yesterday that continued protests by some anti-mining groups “would send a wrong signal to investors interested in putting capital not only in mining, but in other ventures as well.”

Nelia Halcon, CMP executive vice president, find it “very strange for Alyansa Tigil Mina (ATM) to urge President Arroyo to scuttle the Mining Philippines 2009 conference and exhibit scheduled from Sept. 15 to 17 at the Sofitel Philippine Plaza Hotel in Pasay City.”

The three-day mining conference will discuss developments in the mining sector not only in the Philippines, but also in other Asian countries.

Halcon said ATM, has threatened to picket the venue of the conference.

Halcon warned that any protest action “would send a wrong signal to investors interested in putting in capital not only in mining but in other ventures as well.”

The Mining Philippines 2009 conference and exhibition is organized with the support of the Minerals Development Council (MDC) under the Office of the President, as well as the Department of Environment and Natural Resources, and Mines and Geosciences Bureau.

Contrary to the allegations of ATM that the industry has been destroying the environment, Halcon said mining companies have been religiously complying with the requirements of the DENR and the National Commission on Indigenous Peoples (NCIP), particularly on Free and Prior Informed Consent (FPIC) of communities where mining companies operate.

Mining firms, Halcon explained, have been working with local government units (LGUs) on projects that generate livelihood, promote ancillary industries and improve agricultural production in the areas where mining firms operate.

Mining companies, Halcon said, have been encouraged to invest in the Philippines due to the Philippine Mining Act which provides the legal framework for the operation of extractive industries.

Official statistics show that the Philippines ranks third worldwide in gold deposits, fifth in nickel and sixth in chromite.

The Philippines’ proven mineral reserves have revitalized global interest in the extractive industries in the country.

Geological studies indicate that up to 7.1 billion tons of metals could still be extracted and another 51 billion tons of non-metallic minerals can be mined. Halcon stressed that the COMP has been abiding by its policy of responsible mining and promoting the practice of sustainable development.

Halcon said members of the COMP abide by their duty to protect the welfare of indigenous people who inhabit many concession areas.

They also observe the provisions of the Indigenous People’s Rights Act (IPRA), Halcon said.

08-SEP-2009 Intellasia | Manila Bulletin
8 Sep, 2009 - 7:00:00 AM

After some months of delay and with the entry of Australian BHP Billiton Pty. as an interest holder, the Department of Energy (DoE) announced that the drilling at Sulu basin oil and gas prospect will finally kick off this September.

The block was under Service Contract (SC) 56, and also counts global oil giant Exxon Mobil and Mitra Energy in the consortium. The operating interest is held by Exxon Mobil with 50-percent equity; while Mitra Energy farmed out part of its stake to BHP Billiton.

Drilling at Sulu sea was initially scheduled last June, but some developments hindered the acreage interest-holders to push through with the original timeline.

"The first well drilling (at SC 56) will be this September," the energy department announced with utmost certainty.

The entry of the world oil giants at Sulu sea prospect is now considered by the DoE as come-on line for the others to invest in the country's Philippine oil exploration programme.

"This will prove once and for all that the Philippine oil and gas production is a burgeoning enterprise," Energy secretary Angelo T. Reyes said.

With the scheduled next round of energy contracting round, Reyes just noted that his department intends "to boost efforts in the upstream industry to reflect the need to utilise indigenous resources and to reduce reliance on imported petroleum."

Meanwhile, with the country having strategically positioned itself as an oil exporter, the Philippine government reportedly fetched $171,226.04 revenues (approximately P8.2 million) from the Galoc oil field venture since it started commercial operations last year.

It must be noted that after the first shipment to Petron Corporation around November 2008, the succeeding sales made by the Galoc venture have already been with overseas buyers in Thailand, Japan and Korea.

The Galoc Production Company recently reported that total output from the filed already breached more than 2.0 million level.

http://www.mb.com.ph/articles/219130/sulu-sea-oilgas-drilling-start-soon

http://www.intellasia.net/news/articles/resources/111273711.shtml

Anglo eyes 3 RP areas for copper, gold

Reuters | 09/16/2009 6:37 PM


MANILA - Global miner Anglo American Plc. is looking to explore copper and gold in the northern Philippines after selling its stake in a gold and copper project in southern Mindanao island, a senior official said on Wednesday.

"We've been focusing on greenfield exploration in northern Philippines," Roderick Watt, exploration manager for the Philippine unit of the London-listed miner, told reporters on the sidelines of a mining conference.

"Currently, we're looking at properties in Apayao, Abra and Mangkayan. We think it looks promising."

There was no initial estimate on the amount of reserves in the 3 properties, which cover around 24,000 hectares, Watt said.

Anglo earlier sold its 50% share in the Boyongan gold and copper venture in Surigao del Norte province to Philippine partner Philex Mining Corp. for $55 million, following differences in their assessment of the viability of the project.

The Philippines is targeting its mining sector, one of the world's largest and most lucrative in the early 1970s, to attract up to $14 billion in investments by 2013.

But only around $2.4 billion has flowed in since 2004 due to communist insurgencies, disputes with communities and local partners, legal uncertainties and opposition from the Catholic Church.

With the global economy showing signs of recovery, "minerals development remains an optimistic opportunity", said Environment and Natural Resources Secretary Lito Atienza.

Atienza said he was confident the $14 billion goal would be achieved, with the biggest Philippine mining project -- the Tampakan copper-gold project controlled by Xstrata -- on track to start production in 2016.

Chinese firms eye investments in RP's agriculture, mining, tourism sectors
By Marianne V. Go (The Philippine Star) Updated September 17, 2009 12:00 AM

MANILA, Philippines - China has expressed keen interest in the country’s agriculture, infrastructure, mining and tourism sectors, but urged an improvement in the investment environment following numerous complaints from Chinese companies interested in investing in the Philippines.

Speaking at the opening of the Mining Philippines 2009 Conference at the Sofitel Hotel in Pasay City yesterday, Zhengping Wu, counselor of the Economic and Commercial Section of the Embassy of the People’s Republic of China, discussed China’s economic growth plans that include building 50,000 kilometers of new expressways and up to 12,000 kilometers of new express railways that would require a lot of mineral and metal resources.

Zhengping noted that the Philippines accounts for 55 percent of China’s nickel imports, but only one percent of its copper imports.

There is a “huge demand to support China’s economic development,” he added.

According to Zhengping, China is interested in developing “long-term and strategic cooperation” in the mining sector. He said Chinese investors are not going to invest in the Philippines just for “quick money.”

“Our government will ensure a win-win arrangement,” he added.

Zhengping said Chinese investments would not only be in upstream industries, but also in downstream industries that would provide employment.

However, the Chinese official pointed out that the Philippines “needs to improve the investment environment.” He said such improvement is particularly needed in terms of foreign ownership and infrastructure.

He said that a cap on foreign ownership will not do for a long-term and strategic partner in the mining sector.

“Forty percent is not enough,” Zhengping said.

Furthermore, the Philippines “needs to build more modern infrastructure to attract new investments,” he added.

Exxon Mobil to spend
$100M for Sulu drilling

BY JOHN POQUIZ

Exxon Mobil, one of the world’s biggest integrated oil companies, said that it is set to spend $100 million for the drilling of one exploratory well in Service Contract 56 in the South Sulu Sea.

"It’s a very expensive operation. It will be the deepest water depth ever drilled in the Philippines, 1800-meter deep of water, and the longest well drilled in the Philippines, about 5,000 meters," said Ian Fischer, managing director of Exxon Mobil Exploration and Production Philippines.

The Department of Energy (DOE) said the drilling at SC 56 is set late this month.

Fischer said that the company has high hopes of finding oil in the service contract area.

"We hope they’re very good, otherwise, we won’t do it. But our business is very, very high risk and it also takes a lot of risk to be successful. But we’re optimistic. The Department of Energy has given us a very good service contract. The Department of Energy owns the block and we’re just a service contractor," he said.

"So they provide good fiscal terms that attract foreign investments. And Exxon Mobil has very strong technical and financial resources to do this, and we hope that we find oil in it. If we find it, it’s good for the industry, good for the Philippines," he said.

Exxon is the world’s second largest oil and gas company in terms of market after PetroChina. Exxon’s reserves were 72 billion oil-equivalent barrels at the end of 2007 and, at current rates of production, are expected to last over 14 years. The company has 38 oil refineries in 21 countries with a combined daily refining capacity of 6.3 million barrels.

Fischer said the target structure at SC 56 might not be as big as Exxon’s discovery in Cepu, Indonesia, but it is a challenging one.

"Cepu is onshore and it’s a very different prospect. It would be good if we would be able to replicate that success. But as I said, it’s a very challenging prospect," he said.

Exxon has a joint venture with state-owned PT Pertamina to develop the Cepu oilfield. Peak production of 165,000 barrels a day is expected by 2014.

Indonesia is banking on the field, which is estimated to contain 600 million barrels of oil, to boost crude output from around 980,000 barrels a day currently and reclaim its status as net oil exporter.

Fischer said that Exxon is coordinating closely with the DOE and the Department of National Defense on security at the site.

He said government should fast-track exploration.

"That’s what the Philippine needs. It needs to drill wells. If it wants to find oil, it has to drill wells," he said.

"We evaluate opportunities around the world, and then we look at the technical opportunity and risks. (We evaluate) if the country provide terms that are seen attractive to offset those risks," he added.

SC 56 is 900 kilometers southwest of Manila, 200 kilometers northwest from Bongao town and 65 kilometers from Mapun town in Tawi Tawi.

The Department of Energy has previously said that it expects five to seven oil drilling to start this year.

Aside from Exxon Mobil, the others that have been awarded service contracts are Shell Exploration Corp (SPEX), Nido Petroleum, and Filipino-owned Aragorn Power.

SPEX will start drilling in SC 60 North East Palawan in the second half of the year. SC 60 was awarded to SPEX in February 2006, with the government allowing a 25-year production term in the event of a commercial oil discovery.

Filipino-owned Aaragor Power is set to start drilling at SC 48 in the fourth quarter this year.

Under SC 48, the company will conduct geological and geophysical studies as well as drill one well during the first two years of exploration. Four more wells will be drilled in the second and third phase of exploration.

SC 48 covers 748,000 hectares of the Cagayan Valley Basin and is considered to be a high frontier site as revealed in previous studies.

Nido is set to start the drilling in one of its prospected sites in the second half of this year but did not specify the site that the company would be drilling in.

DOE said that it is eyeing to award nine service contracts this year.

Out of the nine service contracts to be awarded this year, six are off-shore petroleum exploration contracts and three are geothermal contracts. Two of the three geothermal contracts are situated in the Luzon, and the other one is in Mindanao.

Local mining companies hike output as gold prices increase (http://www.philstar.com/Article.aspx?articleId=506203&publicationSubCategoryId=66)
By Marianne V. Go

MANILA, Philippines - Strong gold prices have encouraged several mining firms to ramp up production and explore new areas to be able to cash in on the gold bonanza which could last until next year or while the US economy remains in the doldrums.

This was the common sentiment expressed yesterday among several mining firms which presented their projects and plans on the last day of the three-day Mining Philippines 2009 Exhibit and Conference.

Metals Exploration Plc, CGA Mining Ltd., TVI Resource Development Philippines, Inc. (TVIRD) and Sagittarius Mines, Inc., which made presentations yesterday, said they plan to ramp up their gold and copper production and explore promising new areas.

Metals Exploration chairman Ian Holzberger remained bullish on their Runruno gold-molybdenum project in Nueva Vizcaya which currently produces three million tons of ore and 183,000 ounces of gold.

Strong gold prices, Holzberger predicted, would hold for a couple of years as the global economy recovers. The price of gold is now hovering above $1,000 per ounce.

Holzberger said they are awaiting the approval by Malacañang of their Financial and Technical Assistance Agreement (FTAA) for the Runruno project which was endorsed about four months ago by the Department of Environment and Natural Resources.

TVI Resource, which is currently concentrated on copper production, expressed interest in going into gold production.

In his presentation, Clifford M. James, chairman and chief executive officer of TVI Pacific Inc., announced TVIRD’s plans to go back to gold production. Its current operation is concentrated at its Canatuan mine in Siocon, Zamboanga del Norte which produces an average of 198 tons of copper concentrate.

CGA Mining Ltd., which owns 40 percent of Filminera Resources, reiterated its confidence in its Masbate gold project which is targeting to increase its gold production from 200,000 ounces per year to 250,000 ounces.

Filminera is the largest gold producer in the Philippines.

Sagittarius Mines, Inc., said it has started a $74 million feasibility study (FS) and Environmental and Social Impact Assessment (ESIA) for its $5.2 billion Tampakan copper-gold project in South Cotabato.

A potentially rich project, production is scheduled possibly by 2016.

Mining industry sees surge in investments (http://business.inquirer.net/money/topstories/view/20090917-225704/Mining-industry-sees-surge-in-investments)
Inquirer (http://business.inquirer.net/money/topstories/view/20090917-225704/Mining-industry-sees-surge-in-investments)
By Riza T. Olchondra
Philippine Daily Inquirer
First Posted 23:03:00 09/17/2009

MANILA, Philippines - Optimism prevailed at the close of the Mining Philippines 2009 summit, with good metal prospects driving investor commitments to proceed with or even ramp up projects.

And with the global economy on the mend, government officials expect up to $2 billion in investments to come in, allowing the local mining industry to climb out of the pit it has found itself in the past year and make a strong comeback in 2010.

The increase in investments would nearly triple the amount of foreign and domestic investment projected for this year, officials said.

“The interest is definitely there. The applications for investment are coming in,” Environment and Natural Resources Secretary Joselito Atienza said.

Atienza said the country could see $14 billion worth of mining investment from 2009 to 2014, with many projects already in the pipeline.

Mines and Geosciences Bureau chief Horacio Ramos said the agency had targeted $2 billion worth of domestic and foreign investment in 2010 compared with $600 million projected for this year.

Investment in the industry fell from about $700 million in 2007 to $650 million last year, according to the bureau, due largely to the global economic crunch that caused financing for projects to dry up.

Ramos said financing was becoming more available to mining companies amid rising metal prices and growing signs that the worst of the economic crisis was over.

He said the government expected to approve four agreements with large foreign mining firms this year, covering investments worth more than $50 million each.

Wu Zhengping, the Chinese embassy’s economic counselor, said his country remained interested in the Philippine mining industry, citing growing demand for copper and nickel.

“The first thing you have to do is improve your investment environment,” he said, calling for a relaxation of rules limiting foreign ownership of assets and an improvement of the country’s infrastructure.

Chamber of Mines president Benjamin Romualdez welcomed China’s increased interest.

“Our neighbor has set a course for itself ... that could well propel our industry into the future,” he said.

The mining industry enjoyed a boom after it was deregulated in 1995, opening it up to more foreign investment. However, like many export-oriented industries, it was hit hard by the global financial crisis
that started last year.

The government estimates the Philippines has 83 billion tons of mineral ore deposits.

Hayayay...so that explains why I got loads of samples for gold analysis this week. And a lot of companies are submitting copper ores too. Mineral prices are starting to pick up again!

Hayayay...so that explains why I got loads of samples for gold analysis this week. And a lot of companies are submitting copper ores too. Mineral prices are starting to pick up again!

what kind of chemical analysis are you doing with copper ore samples?

^^ Assay test. We are a commercial testing company.

:)

Copper usually goes hand in hand with gold. So if a mining company is into gold mining, chances are, it's also into copper mining.

i heard before that PASAR, a copper smelting and refining company, refines gold also...

Sumitomo, Nickel Asia invest $1.3B in nickel-processing plant
Economy
Monday, 21 September 2009 20:53

SUMITOMO Metal Mining of Japan and Nickel Asia Corp., the Philippines’ largest nickel-mining group, signed a memorandum of understanding in Japan on Monday to proceed with the construction of a nickel-processing plant in Claver, Surigao del Norte.

Signing the memorandum was Manuel Zamora Jr., chairman and founder of the Nickel Asia group, and Gerard Brimo, president and CEO. The $1.3-billion project will take three years to complete and construction is expected to start early next year.

The project will represent the largest foreign investment in the Philippine minerals sector to date.

The plant will be constructed adjacent to Taganito Mining Corp.’s nickel mine.

Taganito, a subsidiary of Nickel Asia, will supply all of the required nickel ore to the plant for an estimated 30-year project life, while Nickel Asia will take a 20-percent to 25-percent equity interest in the project under a joint-venture company called THPAL Corp.

The output of the plant, a mixed nickel-cobalt sulfide, will be purchased by Sumitomo for final processing at its refinery in Japan.

This will be the country’s second downstream nickel-processing plant by the Sumitomo-Nickel Asia tandem. The first plant is under Coral Bay Nickel Corp., a joint venture between a Japanese consortium, led by Sumitomo, and Rio Tuba Nickel Mining Corp., another Nickel Asia subsidiary.

Constructed adjacent to the operations of Rio Tuba in southern Palawan, the plant became operational in 2005 and has been a technical and commercial success. Its initial capacity of 10,000 tons per year of nickel metal equivalent has since been doubled.

The new project, triple the size of the initial Coral Bay plant, is considered to be particularly beneficial to the country due to the value added created by the downstream mineral- processing plant.

The project is expected to employ about 4,000 personnel during the construction stage and 1,000 full-time employees when operational.

Substantial benefits will accrue to the adjoining communities from its Social Development Management Projects, while yearly exports of its product will bolster the country’s foreign-exchange reserves.

Substantial taxes will also be paid from the plant operations and from the Taganito mine due to the increase in mined ore to feed the requirements of the plant.

Chevron eyes excess Malampaya output (http://www.philstar.com/Article.aspx?articleId=507432&publicationSubCategoryId=66)
By Donnabelle L. Gatdula

MANILA, Philippines - The local unit of US-based energy giant Chevron is planning to bid for the excess output of the Malampaya deep water gas-to-power project in Palawan to fuel a proposed 300-megawatt natural gas project at its 40-hectare Batangas terminal.

“It’s one of the options that we are looking at. We will bid for the excess gas,” said Toby Nebrida, communications manager of Chevron Philippines Inc.

The Malampaya consortium of which Chevron is a part of, is selling up to 500 MW of the excess capacity in its natural gas project in northwest Palawan.

Nebrida said the construction of a power plant is among the business ventures being explored by the company after it was granted another 25-year lease for its Batangas terminal by the National Development Corp. (NDC).

The Chevron Group’s power assets, which include those in refinery and upstream operations, generate more than 5,500 MW of electricity. Chevron has interests in 13 joint venture power facilities in the United States and Asia. Its combined-cycle and natural gas-fired co-generation plants use waste heat to produce additional electricity and heat for industrial uses. A number of its facilities provide steam for the production of heavy oil.

The company is also the world’s leading producer of geothermal energy, with major operations in Indonesia and the Philippines. Chevron operates the 259-MWDarajat and 377-MWSalak geothermal fields in West Java, Indonesia. In the Philippines, it manages the combined generating capacity of the Tiwi and Mak-Ban geothermal plants.

Chevron is also exploring alternative and renewable energy technologies.

Natural gas is a growing segment of Chevron’s energy portfolio. Its natural gas resources span six continents, including significant holdings in Africa, Australia, Southeast Asia, the Caspian Region, Latin America and North America. Chevron has a net production of more than five billion cubic feet of natural gas per day including equity shares in affiliates, which is expected to substantially increase over the next decade.

In the regions where Chevron has significant gas resources, it is pursuing projects to build liquefaction facilities that will cool natural gas into a liquid so it can be shipped safely in specialized tankers to growing markets. 

It is a longtime participant in Australia’s North West Shelf Venture, which ships LNG to customers in Japan, South Korea and China. Chevron also supplies natural gas to LNG processing facilities in Point Fortin, Trinidad, and in Bontang, Indonesia.

On top of the power plant project, the Batangas property will also be used for storage and possible expansion of current oil warehouse.

According to Nebrida, the group is currently assessing its operations through a feasibility study. He said the study also involves the $20 million retooling of its facilities in the Philippines for ethanol blend compliance.

“There are challenges along the way for the retooling and it involves considerable amount of investment but our company will comply with the law,” he said.

Sumitomo, Nickel Asia invest $1.3B in nickel-processing plant (http://www.businessmirror.com.ph/home/economy/16304-sumitomo-nickel-asia-invest-13b-in-nickel-processing-plant.html)
Business Mirror (http://www.businessmirror.com.ph/home/economy/16304-sumitomo-nickel-asia-invest-13b-in-nickel-processing-plant.html)
Monday, 21 September 2009 20:53

SUMITOMO Metal Mining of Japan and Nickel Asia Corp., the Philippines’ largest nickel-mining group, signed a memorandum of understanding in Japan on Monday to proceed with the construction of a nickel-processing plant in Claver, Surigao del Norte.

Signing the memorandum was Manuel Zamora Jr., chairman and founder of the Nickel Asia group, and Gerard Brimo, president and CEO. The $1.3-billion project will take three years to complete and construction is expected to start early next year.

The project will represent the largest foreign investment in the Philippine minerals sector to date.

The plant will be constructed adjacent to Taganito Mining Corp.’s nickel mine.

Taganito, a subsidiary of Nickel Asia, will supply all of the required nickel ore to the plant for an estimated 30-year project life, while Nickel Asia will take a 20-percent to 25-percent equity interest in the project under a joint-venture company called THPAL Corp.

The output of the plant, a mixed nickel-cobalt sulfide, will be purchased by Sumitomo for final processing at its refinery in Japan.

This will be the country’s second downstream nickel-processing plant by the Sumitomo-Nickel Asia tandem. The first plant is under Coral Bay Nickel Corp., a joint venture between a Japanese consortium, led by Sumitomo, and Rio Tuba Nickel Mining Corp., another Nickel Asia subsidiary.

Constructed adjacent to the operations of Rio Tuba in southern Palawan, the plant became operational in 2005 and has been a technical and commercial success. Its initial capacity of 10,000 tons per year of nickel metal equivalent has since been doubled.

The new project, triple the size of the initial Coral Bay plant, is considered to be particularly beneficial to the country due to the value added created by the downstream mineral- processing plant.

The project is expected to employ about 4,000 personnel during the construction stage and 1,000 full-time employees when operational.

Substantial benefits will accrue to the adjoining communities from its Social Development Management Projects, while yearly exports of its product will bolster the country’s foreign-exchange reserves.

Substantial taxes will also be paid from the plant operations and from the Taganito mine due to the increase in mined ore to feed the requirements of the plant.

Atienza cites economic gains from mining (http://www.philstar.com/Article.aspx?articleId=507936&publicationSubCategoryId=66)
(The Philippine Star (http://www.philstar.com/Article.aspx?articleId=507936&publicationSubCategoryId=66)) Updated September 24, 2009 12:00 AM

MANILA, Philippines - Environment and Natural Resources Secretary Lito Atienza has cited the Philippine mining industry as a pillar of the country’s economic growth and as an engine that generates jobs and reduces poverty in the countryside.

“We believe that the development of our mineral wealth will help us achieve sustained economic development and improved quality of life for our people and a major factor in attaining our investment target in mining,” Atienza said in the recent Mining Philippines 2009 Conference at the Sofitel Philippine Plaza Hotel in Pasay City.

To prove his point, Atienza said that from 2004 to the first semester of 2009, mining investments totaled to about $2.4 billion and that another $450 million is expected to be invested in the sector this year.

Atienza also said that since 2004, the government has been promoting 60 mining, exploration and processing projects which are expected to collectively generate a total of up to $14.8 billion of investments up to the year 2013.

“The Philippine mining industry is projected to register a growth of nine percent in 2009 with the coming on stream of six new mines including Carmen Copper Project in Cebu, Masbate Gold Project in Masbate, Palawan HPAS Line 2 Nickel Project in Palawan, TVI Base Metal Project in Zamboanga del Norte, PHILSAGA CO-O Gold Project in Agusan del Norte and CTP Carrascal Nickel Project in Surigao del Sur,” Atienza said.

The DENR chief also cited the upswing in the jobs generated by mining in the country saying that in 2005 the country’s mining industry has created a total of 123, 000 jobs; in 2006, a total of 141,000; in 2007, 149,000; in 2008, 158,000 and as of the second quarter of 2009, a total of 166,000 jobs.

DENR records also showed that annual gross value added (GVA), which refers to the goods and services produced by mining (at current prices), amounted to the following: in 2005, P46.3 billion; in 2006, P59.6 billion; 2007, P90.5 billion; 2008, P89.5 and as of the second quarter of 2009, P23.3 billion.

Atienza also expressed optimism in the achievements of mining in the country’s economy on account of the government’s revitalization program in the mining industry and the Mining Act of 1995 that puts strong focus on the environmental and social responsibilities of the mining companies.

Under the Mining Act and its revised implementing rules and regulations, a social development and management program (SDMP) was institutionalized with the objective for mining companies to implement plans, programs and projects that would improve the living standards of the mining project’s host communities in accordance with the principles of people empowerment and sustainable development.

Under the mining law, SDMP is being funded with 90 percent of one percent of the annual direct mining and milling costs. The law also provides for a national wealth share for the local government and at least one percent of the annual gross revenue as royalty for the indigenous peoples groups in case their ancestral domain is being developed for mining.

“That’s the way mining should really go in the Philippines — for the benefit of the country and for responsible mining to be ensured, mining operations covered by the Philippine Mining Act and supervised by the DENR. I believe this is the way to really promote mining in the Philippines,” Atienza said.

Gindara field in Palawan likely bigger than Malampaya, says Nido Petroleum (http://www.philstar.com/Article.aspx?articleId=507933&publicationSubCategoryId=66)
By Donnabelle L. Gatdula (The Philippine Star (http://www.philstar.com/Article.aspx?articleId=507933&publicationSubCategoryId=66)) Updated September 24, 2009 12:00 AM

MANILA, Philippines - Australian firm Nido Petroleum Ltd. (Nido) said it believes its Service Contract 54 or the Gindara prospect in Northwest Palawan has potential reserves bigger than the existing Malampaya gas project in the same area.

Jon Pattillo, Nido’s head of exploration, told the Australian Stock Exchange
that “Gindara has matured into an outstanding prospect and is now the highest ranked drilling candidate in Nido’s NW (Northwest) Palawan exploration portfolio in terms of its excellent risk profile and potential significance to the company.”

“The prospect is comparable in scale to Shell’s Malampaya field, 30 kilometers to the north, but located in only 320 meters of water and close to the joint ventures recent discoveries at Tindalo and Yakal in adjacent SC 54 Block A,” Pattillo said.

According to Pattillo, the company is now intensifying its drilling operations in the site to harness its vast potential at the soonest possible time.

Nido has reprocessed seismic data from SC 54B and it showed “improved subsurface imaging and markedly reduced prospect risk.”

“Unrisked mean oil in-place (OIP) volumes have increased from 470 to 634 million barrels with an unrisked upside of approximately one billion barrels,” he said.

Nido Petroleum is an oil and gas company with over 2.94 million hectares of exploration and development assets in the Northwest Palawan basin.

Nido’s core production asset includes a 22.879 percent interest in the Galoc oil field. Galoc lies within SC14 in 300 meters of water, some 60 km offshore
of Palawan. The Galoc reservoir is some 2,200 meters below the sea floor and first production commenced in October 2008.

Just as Galoc started flowing oil, Nido completed drilling in the neighboring exploration assets (SC 54A) resulting in two new oil discoveries at Yakal and Tindalo, a 100-percent strike rate that punctuates a drought of over 14 years in the Philippines. Nido intends to fasttrack the Tindalo development, targeting its first oil by early 2010.

Nido earlier accepted the farm-in offer of another Australian firm Yilgarn Gold
Ltd., a publicly-listed mineral exploration company which will hold 40 percent of SC 54.

^^ this is good news.

^^ this is good news.

Very good indeed. Hopefully these explorations will strike more sizeable oil and gas finds in Palawan and Sulu seas and other parts of the country until we are self-sufficient. :banana:

Meanwhile, with the country having strategically positioned itself as an oil exporter, the Philippine government reportedly fetched $171,226.04 revenues (approximately P8.2 million) from the Galoc oil field venture since it started commercial operations last year.



We've started exporting oil. Time will come when the oil reserves of Arabian states will come to depletion, the Philippines will emerge as a major oil exporting country with more oil wells being discovered! What a picture!

^^ not only the PHilippines, but also Vietnam, Indonesia, Malaysia, Brunei.

In the future, the world will realize too that Southeast Asia is another emerging oil rich region.

^^ wow, PHilippines will soon to be a NET oil exporting country? I hope it happens in my lifetime.

^^ wow, PHilippines will soon to be a NET oil exporting country? I hope it happens in my lifetime.

Currently, our oil produce is only a part of our domestic consumption. Just hope and pray that the on-going explorations and drillings will find major oil wells of commercial capacity comparable to those of Indonesia's and Brunei's or even that of the Middle East oil wells.

^^Concommittant to that, Spratlys is foreseen to be the blodiest battle field as supremacy will be fought over by claiming countries..

http://www.philstar.com/Article.aspx?articleId=510618&publicationSubCategoryId=66

:banana:
ExxonMobil sees huge potential reserves in South Sulu Sea
By Donnabelle L. Gatdula (The Philippine Star) Updated October 03, 2009 12:00 AM


MANILA, Philippines - ExxonMobil, the world’s largest oil and gas exploration company, expects its Service Contract 56 in South Sulu Sea to yield potential oil reserves of 750 million barrels, enough to cover for the country’s daily consumption of 275,000 barrels per day in seven years.

ExxonMobil is the lead operator of SC 56. Other development partners are Mitra energy and BHP Billiton.

“If we are successful here it would provide enough petroleum products for seven years. In other words, it’s enough to supply us with our current requirement for seven years,” Energy Secretary Angelo Reyes said.

ExxonMobil managing director Ian Fischer, for his part, said they would be pouring in about $100 million in investments for the initial phase of the drilling activity.

He said should they prove the potential reserve in the area, they would infuse another $100 million to support the drilling of another well.

SC 56 lies 900 kilometers southwest from Manila, 200 kilometers northwest from Bongao municipality and 65 kilometers from the town of Mapun in Tawi-Tawi in the Autonomous Region of Muslim Mindanao (ARMM).

SC 56 is part of the Philippine government’s efforts to encourage investments in the energy sector leading to energy security for the country.

The exploration phase will be undertaken at no cost to the Philippines, with all risk borne by the contractors, ExxonMobil, Mitra Energy and BHP Billiton.

An inter-agency initiative led by the Department of Energy (DOE) will come up with the first-of-a-kind one-stop-shop (OSS) to facilitate the smooth operation of oil exploration firms in the Philippines.

Reyes said this will be a start of a new era in the oil exploration industry wherein processing of papers for those conducting exploration activities in Philippine waters will be shortened due to the establishment of the OSS.

The OSS, Reyes said, will be applicable to all future drilling rig that would be coming in.

This OSS was institutionalized with the entry of the world’s largest oil exploration company, Exxon Mobil, in the Philippine oil exploration industry.

In 2007, ExxonMobil officially informed the DOE of its plan to engage in oil drilling activities in Palawan.

In the Asia-Pacific region, ExxonMobil has major exploration and production operations in Australia, Indonesia, Malaysia and Papua New Guinea.

The company also has a significant refining and marketing presence in more than 12 countries in the region.

Nido Petroleum mulls going into next phase of Galoc oil drilling (http://www.philstar.com/Article.aspx?articleId=512653&publicationSubCategoryId=66)
By Donnabelle L. Gatdula

MANILA, Philippines - Australia’s Nido Petroleum Ltd., an oil and gas exploration company focusing on the offshore Palawan Basin, plans to enter the second phase of its oil drilling activities in the Galoc field or Service Contract 14.

“The Galoc joint venture continues to assess further facility and subsurface development options for Phase 2 of the Galoc oil field development,” the company told the Australian Stock Exchange.

Nido said it is optimistic the exploration area may yield more potential reserves.

“In support of these efforts, it is important for Nido to have a more current and meaningful understanding of the developed reserves, the undeveloped reserves and any other remaining potential in the field,” it said.

To meet this challenge, Nido said is presently updating its reserves assessment of the Galoc oil field to incorporate performance data up to the end of September 2009.

“We will advise the market once this work is concluded in early 2010,” it added.

Galoc has been back on production since mid-August and the field continues to produce around 11,000 barrels of oil per day.

On Sept. 15, alone, 335,432 barrels of oil were lifted successfully from the field.

The field operator, Galoc Production Co. (GPC), has also advised Nido that future offtake has been sold to another repeat buyer and is due for offtake this month and the marketing of another production is well underway.

“With stable oil prices, continued healthy demand for Galoc crude throughout the region and a steady rate of production, Nido’s financial position remains healthy,” the company said.

It also reported that operations at SC 14 were not disrupted despite the onslaught of tropical storm Ondoy.

“As reported in the international press last week, Ondoy (international name Ketsana), ravaged Metro Manila in the Philippines and left at least 246 dead. Relief efforts are underway to assist those who have lost their homes and property. Nido is doing its part to help in these efforts. Fortunately, production at the Galoc oil field continued steadily during the passage of the stormy conditions,” it said.

Nido has over 2.94 million hectares of exploration and development assets in the northwest Palawan Basin in the Philippines.

Its core production assets include its 22.879-percent interest in the Galoc oil field.

Just as Galoc started flowing oil, Nido completed drilling in the neighboring exploration assets (SC 54A), resulting in two new oil discoveries at Yakal and Tindalo — a 100-percent strike rate that punctuates a drought of over 14 years in the Philippines.

Tindalo-1 has a potential of 24.5 million barrels of oil with a recovery factor of 45 percent. Yakal-1, on the other hand, has a potential of up to 10.7 million barrels with a recovery factor of 35 percent.

Nido earlier accepted the farm-in offer of another Australian firm Yilgarn Gold Ltd., a publicly-listed mineral exploration company, to hold 40 percent of SC 54.

Nido, along with several local oil companies as a consortium, presently operates the Nido and Matinloc fields, offshore oilfields located at Northwest Palawan that contributes about 5,000 barrels of oil per day to the Philippine energy mix.

ExxonMobil drills first well in Sulu Sea
by Alena Mae S. Flores

EXXONMOBIL Exploration and Production Philippines B.V., an affiliate of Exxon Mobil Corp., started drilling its first deepwater exploration well in the Philippines.

ExxonMobil Exploration started drilling the Dabakan-1 well last Sunday under Energy Department service contract 56 which covers an area of 8,200 square kilometers, 900 kilometers southwest of Manila and 200 kilometers northwest of Bongao, the capital of Tawi-Tawi province.

The company will use the Seadrill West Aquarius deepwater semi-submersible rig, which is designed to operate up to a maximum depth of 10,000 meters, for its Dabakan operations.

Ian Fischer, managing director of ExxonMobil Exploration, said the service contract is part of the Philippine government’s efforts “to encourage investments in the energy sector. We are very pleased to be part of this effort to look for new energy resources in deepwater in the Sandakan Basin, South Sulu Sea.”

Fischer told participants of the Petroleum Association of the Philippines luncheon meeting that ExxonMobil Exploration might drill another exploratory well depending on the “result of the first well.” He said the company might spend another $100 million for the additional well on top of the $100 million for the first well.

“We spend about $1 million per day for the drilling,” he said.

ExxonMobil Exploration is the operator and holds a 50-percent stake in SC-56. Mitra Energy Limited and BHP Billiton International Exploration Pty Ltd. each have 25-percent interest in SC-56.

The energy department said that SC-56 has an estimated 750-million barrels of oil that can meet the domestic market demand for seven years.

source: http://www.manilastandardtoday.com/insideBusiness.htm?f=2009/october/13/business2.isx&d=/2009/october/13

Galoc oil field operator mulls 2 new wells (http://www.philstar.com/Article.aspx?articleId=513856&publicationSubCategoryId=66)
By Donnabelle L. Gatdula

MANILA, Philippines - The Department of Energy said yesterday the operator of the Galoc oil field in Palawan may drill two new wells “either for additional production or to keep production at current levels.”

Energy Undersecretary Ramon Oca told reporters that Galoc Production Co. (GPC) and other consortium members of Service Contract 14 in Northwest Palawan is presently assessing seismic data to determine whether to proceed with the additional drilling.

“Galoc might drill two new wells — it could be two appraisal wells. They are still assessing the data. They’re reviewing existing data and the decision to drill two more wells will depend on the results of the review of the data,” Oca said.

The energy official said the Galoc field is presently producing 10,700 barrels of oil per day.

“Even as they are producing now, it generates more new data,” he said.

Australian firm Nido Petroleum Ltd., one of the consortium members, has already raised the possibility of entering the second phase of its oil drilling activities under SC 14.

“The Galoc joint venture continues to assess further facility and subsurface development options for Phase 2 of the Galoc oil field development,” Nido said.

Nido said it is presently updating its reserves assessment of the Galoc oil field to incorporate performance data through the end of September.

“We will advise the market once this work is concluded in early 2010,” it added.

The Galoc consortium, meanwhile, has made its ninth shipment to Korea and the 10th shipment to Thailand, an industry source said.

Its eighth shipment was sold to oil giant Petron Corp. This is the second time the local refiner bought its crude requirement from the Galoc field.

“There is a second cargo bought by Petron,” the source said.

Galoc lies within SC 14 in 300 meters of water, some 60 kilometers offshore of Palawan Island. The Galoc reservoir lies 2,200 meters below the sea floor, with its first production on Oct. 9, 2008.

GPC, which owns 58.29 percent in the consortium, is composed of the Vitol Group (68.6 percent), an international oil company, and Otto Energy Ltd. of Australia (31.4 percent).

Other members of the consortium are Nido with 22.8 percent; Oriental Petroleum and Minerals Corp., 7.57 percent; The Philodrill Corp., 7.03 percent; UK firm Forum Energy Philippines Corp., 2.27 percent; Alcorn Gold Resources Corp., 1.53 percent and PetroEnergy Resources Corp., 1.03 percent.

Philippines aiming to join China boom (http://www.manilatimes.net/index.php/top-stories/4939-philippines-aiming-to-join-china-boom)
Friday, 30 October 2009 00:00
Manila times (http://www.manilatimes.net/index.php/top-stories/4939-philippines-aiming-to-join-china-boom)

The Philippines aims to be one of the next nations to cash in on China’s insatiable appetite for resources, with the Asian neighbors working to build closer mining ties, according to officials from both sides. The Southeast Asian country has vast amounts of gold, nickel, copper and other valuable minerals, but for years its mining industry has underperformed because of bad governance, foreign ownership restrictions and domestic opposition.

Now, with the Philippines trying to nearly triple annual investment in the sector to $2 billion, China is being seen as a crucial buyer and source of funds to develop some of Manila’s largest mining prospects.

“It’s all very fortunate for us because we have the advantage of geography . . . they can practically buy everything we produce here,” the Philippine Mines and Geosciences Bureau chief, Horacio Ramos, told Agence France-Presse.

The economic counselor of the Chinese Embassy in Manila, Wu Zhengping, also told a mining conference here last month that Beijing was looking at a “long-term strategic cooperation” with Manila in the mining sector.

“It’s a win-win arrangement,” Wu said.

Chinese concerns

However, Wu added that the Philippines must address some key Chinese concerns, particularly continued restrictions on foreign ownership and inadequate infrastructure.

“The first thing you have to do is improve your investment environment,” Wu said, calling for a relaxation on rules limiting foreign ownership of assets.

Nevertheless, China has shown it was willing to deal in the current environment.


Zijin Mining Group, China’s largest gold miner, and another Chinese firm this month signed a memorandum of understanding with the Philippine government that could lead to $1 billion in mining investments over five years.

Foreign minister visits

Chinese Foreign Minister Yang Jiechi on Wednesday also began a two-day trip to Manila, and resources were expected to be on the agenda during talks with President Gloria Arroyo on Thursday.

“Mining will be among the issues to be discussed,” Ramos said.

The government estimates the Philippines has 83 billion tons of mineral ore deposits.

The country’s estimated gold ore reserves of 4 billion tons is the world’s third largest, its 7.9 billion tons of copper the fourth largest and the 815 million tons of nickel ore the fifth biggest in the world, it says.

Missed opportunities

The Philippines has largely missed out on the economic windfalls the likes of Australia and countries in Africa have seen in recent years as they sold resources to power China’s surging economy.

“The Chinese are going global, but I just don’t see any substantial investments here in the Philippines,” the executive vice president of industry association Chamber of Mines of the Philippines, Nelia Halcon, told Agence France-Presse.

“The market is there. We just need to develop our resources . . . They [China] have a potentially crucial role to play in developing the industry.”

The Philippines mining industry went into near-hibernation after the collapse of metals prices in the 1970s, then a high-profile tailings spill in the 1990s galvanized environmentalists into a strong anti-mining force.

The mining industry began to recover after parliament passed a law in the mid-1990s that lifted foreign ownership restrictions on major discoveries.

This drove fresh investments that reached annual levels of about $700 million, before dipping slightly to $650 million last year because of the global financial crisis.

The government expects investments worth $2 billion this year as metals demand improves.

Agreements signed

Also on Thursday, the Philippines and China signed two agreements aimed at improving bilateral relations.

Foreign Affairs Secretary Alberto Romulo and Minister Yang signed the Philippines-China Joint Action Plan for Strategic Cooperation and the Philippines-China Consular Agreement in Malacañang.

The joint action plan maps out the general strategic directions in bilateral cooperation in the next five years, while the consular agreement is the first of its kind that the Philippines signed with China after the Vienna Convention on Consular Relations.

Romulo said the joint action plan “covers the gamut of economic, political, people to people, trade, investment, tourism and all the important aspects of the relation that we have” between the two countries.

“So we are going to intensify those relationships and all our departments will be involved just as all their Ministries will be involved,” he added. “We are looking forward to the Strategic Joint Action Plan to have more activities between the two countries.”

Romulo underscored the importance of the consular agreement, which he said marks the “first Consular Agreement that we are signing after the Vienna Convention.”

The Vienna Convention on Consular Relations was completed in 1963 as a multilateral treaty to codify consular practices that developed through customary international law, numerous bilateral treaties, and a number of regional treaties.

It enumerates basic legal rights and duties of signatory states, including: the establishment and conduct of consular relations, by mutual consent, and the privileges and immunities of consular officers and offices from the laws of the “receiving State” (the country where the foreign consular office has been established).

“This [consular agreement] will help facilitate the consular relationship between the two countries and in particular help our countrymen who go to China,” he said. AFP With report from Angelo S. Samonte

As if it is not enough that Cebu is just recieving crumbs and left overs in terms of national government attention and here comes another disparity...:ohno:

----------------------------------------------------------------
Chamber asks Palace for help on P8 fuel price discrepancy (http://www.sunstar.com.ph/cebu/chamber-asks-palace-help-p8-fuel-price-discrepancy)

THE Cebu Chamber of Commerce and Industry (CCCI) asked President Arroyo for some relief from rising oil prices, saying Cebuano consumers were made to absorb “losses” arising from a price freeze ordered in Luzon.

In a letter sent through Presidential Assistant for Central Visayas Felix Guanzon, the CCCI said that since Executive Order 839 took effect—forcing oil companies to return to fuel price levels as of Oct. 15—fuel products have cost at least P8 more in Cebu than in Metro Manila.

Sun.Star accepts donations for victims of Typhoon Ondoy

The CCCI said it understood that the price freeze was intended to help consumers in Luzon who are reeling from a series of powerful storms since late September.

“However, when the Big 3 oil companies implemented Executive Order 839, the price of fuel in Cebu correspondingly increased by P2, giving us the impression that Cebu is being made to bear the brunt of the alleged ‘losses’ from the said price freeze,” said the letter signed by Consul Samuel Chioson, CCCI president.

The chamber pointed out that in April this year, it appealed for President Arroyo’s help with an “inequitable discrepancy” that forced Cebu-based consumers to pay higher pump prices than those in other areas.

The CCCI and other business organizations then joined Cebu Gov. Gwendolyn Garcia in filing a complaint against Petron, Pilipinas Shell and Chevron before a joint task force of the justice and energy departments.

Continuing

“While the case is still under review, Cebu has seen several rounds of fuel price increases, the latest of which was another increment this week,” the CCCI said in its letter.

“This further widens the gap between Metro Manila and Cebu prices by as much as P8.85 per liter for diesel as of today (Oct. 30).”

Citing reports by the Department of Energy, the chamber pointed out that diesel was sold for P28 per liter, on the average, in Metro Manila, compared to P36.85 in Cebu. Gasoline retailed for P36.41 in the capital region for the same period, compared to P45.19 (unleaded) in Cebu.

“While the Big 3 oil companies have been unable to give a plausible explanation for the higher fuel prices in Cebu vs. prices in the rest of the country, they continue imposing increases, further disadvantaging Cebu business and the entire Cebu populace,” the chamber said.

It asked for Malacañang’s “urgent intervention.”

Philex Mining infuses P1.2 B into oil exploration subsidiary
By JAMES A. LOYOLA
November 11, 2009, 6:16pm



Philex Mining Corporation is investing an additional P1.2 billion in wholly-owned oil exploration subsidiary Philex Petroleum Corporation (PPC) in preparation for possible acquisition of new assets.

In a disclosure to the Philippine Stock Exchange (PSE) Wednesday, Philex Mining president J. Ernesto C. Villaluna, Jr. said the investment was approved by the firm’s board in a meeting held last Tuesday.

The investment will be made by way of a subscription to 1.2 billion new shares of PPC at its par value of P1.00 per share or a total subscription price of P1.2 billion.

The new shares in the company will come from the increase in the authorized capital stock of PPC from P2 billion to P6.8 billion.
“The proceeds of the subscription will enable PPC to acquire oil and petroleum assets,” Villaluna said.

Philex Petroleum has a 33 percent interest in Forum Energy Plc (FEP), a UK-based company listed at the Alternative Investment Market of the London Stock Exchange.

FEP, through its 70 percent-owned subsidiary, Forum (GSEC 101) Limited, holds Geophysical Survey and Exploration Contract (GSEC) No. 101 over the Sampaguita natural gas discovery in the northwest coast of Palawan, Philippines.

FEP has a pending application for the conversion of this GSEC into a service contract, after which further exploration of the Sampaguita property can be commenced.

Philex Petroleum also owns 6.4 percent of Pitkin Petroleum Ltd (Pitkin), a Texas-based junior exploration company in the United States currently producing on a smallscale basis in Louisiana but with properties in offshore Vietnam and Peru.

PPC also acquired 20 percent of PetroEnergy Resources Corporation, a local company listed in the PSE engaged in oil exploration and in providing technical services to companies exploring for oil in the Philippines.

The investment of Philex Petroleum in FEP brought the Philex Group’s total interest to 61 percent taken together with the 28.4 percent interest of FEC Resources, Inc., a 50.7 percent-owned Canadian subsidiary of Philex Mining Corporation.

The investment in Pitkin brought the Philex Group’s total investment to 21 percent taken together with the holdings of Philex Mining.

Aside from PPC and Pitkin, Philex Mining also has investments in Brixton Energy & Mining Corporation (BEMC) which is allowed to extract coal from a 2,000 hectare property in Zamboanga Sibugay for 32 years commencing on May 5, 2008.

Philex also has direct stakes in SC-41, Deepwater South Sulu Sea, for which recoverable reserves estimate prior to drilling was reported to be at a maximum of 150 million barrels; SC-6, Cadlao Block-NW Palawan, which is expected to recover between 1.0-1.5 million barrels of oil; and SC-6A, Octon Block-NW Palawan, which is being linked with the Galoc field.

Manila Bulletin (http://www.mb.com.ph/articles/229050/philex-mining-infuses-p12-b-oil-exploration-subsidiary)

PNOC-EC offers to fill up depots with imported oil
By MYRNA M. VELASCO
Manila Bulletin (http://www.mb.com.ph/node/228974/pnocec-offer)
11, 2009, 3:32pm


As takeover of oil facilities becomes threadbare in the political front, state-controlled Philippine National Oil Company-Exploration Corporation (PNOC-EC) jumped into the fray and is showing bold front that it would be able to plug the country’s oil needs amid forecasts of supply shortages.

“If there will be problem of supply as voiced out by the oil companies, PNOC-EC is ready to supply oil,” company chairman and former Congressman Jacinto Paras said.

The PNOC chair disclosed that the plan is to takeover the oil firms’ depots for PNOC-EC’s shipments, and the company also plans to supply directly to the gasoline stations of the private oil companies. “Under the (Oil Deregulation) law, whenever there is a shortage or danger that oil will not be supplied, government shall take over those facilities, in their depots we will place our imports, we will use their facilities and ship directly to the stations,” he stressed.

Paras noted that they have contacts in Asia and the Middle East, and the only thing the company needs to secure on their plan to supply oil would be President Gloria Macapagal Arroyo’s blessings.

“We can supply within 10 days upon order, just right prior to any supply of oil is reduced. The only thing that is hindering (us) is a good signal from Malacañang,” Paras emphasized.

Nevertheless, the takeover attempts on oil facilities as articulated by government officials, is viewed by the business community as “very scary” and an extremely dangerous proposition.

If the government fails in handling the matter judiciously, foreign businesses cautioned this early that it is not far-fetched that such will result in near-term investor exodus. “That’s a very dangerous precedent. It is sending very bad signal to the international investing community,” a source said.

Meanwhile, PNOC-EC claimed that it is already supplying oil to Bangladesh and about to strike a deal with China, though it did not specify where it has been sourcing its supply.

“(PNOC-EC) has already been supplying oil to Bangladesh and is about to supply to China, it is not hard for it to supply oil to its own country if emergency exists,” Paras added.

He further emphasized, if and when the President allows them to supply oil, PNOC-EC would want to re-exist as an oil firm competing with the players in the industry, whichever among them would be able to survive the lingering financial squeeze sanctioned by the imposition of Executive Order 839.

Long before the imposition of the price freeze, PNOC-EC already advanced pronouncement that it wants to engage in the downstream side of the business by putting up retail stations to break into the market’s competitive play.

Galoc oil field in offshore Palawan resumes production
Economy
Written by Paul Anthony A. Isla / Reporter
BusinessMirror (http://www.businessmirror.com.ph/home/economy/18384-galoc-oil-field-in-offshore-palawan-resumes-production.html)
Tuesday, 10 November 2009 20:33



AUSTRALIA-BASED Otto Energy Ltd. reported on Tuesday that the production at the Galoc oil field in offshore Palawan has already resumed on Monday afternoon.

In a statement, Otto said the Galoc oil field has already resumed following the temporary suspension, which was needed due to a delay in offloading crude oil from the floating production storage and offloading facility.

Otto noted that offloading is ongoing as a routine operation, with crude oil being transferred from the FPSO to the off-take tanker following replacement of the floating export hose.

Galoc Production Co. (GPC), operator of the Galoc oil field, earlier said the data obtained during the extended test has proved invaluable in providing sufficient confidence in reservoir performance to justify the start of long-term production.

GPC noted that production will be from the existing two wells, and that assessments of the potential for additional incremental development are under way.

GPC said the performance of the reservoir, production facilities and uncertainty in the oil price over the next three to six months will be key considerations in this assessment.

According to the Department of Energy, the Galoc oil field is expected to produce an average of 17,000 barrels to 20,000 barrels of crude oil daily, or about 6 percent of the country’s 300,000-barrel daily requirement.

Exploration results show that the Galoc field has reserves containing 10 million to 20 million barrels, subject to further studies and exploration that can possibly result in additional yield.

In March GPC reported that production at the Galoc oil field has reached the 1-million-barrel level.

GPC said production has been steady since operations were resumed on February 25 with the benefit of increased flush production realized.

The Galoc production was put on hold in December last year after the mooring and riser system was detached from its floating production storage and offloading facility.

GPC added that production levels have reached around 16,000 barrels of oil per day for the first week since it resumed operations, which are expected to settle back to 12,000 to 14,000 barrels of oil per day.

Pumped-up prices: $4 per gallon gasoline may be coming in 2010
Joseph Lazzaro - Nov 12th 2009 at 9:40AM Daily Finance

http://www.dailyfinance.com/2009/11/12/pumped-up-prices-4-per-gallon-gasoline-may-be-coming-in-2010/

Has this been a trying decade for the average American, or what? It's bad enough that we've have had to cope with stagnant wages and tax increases at just about every level. But in the months ahead, we may have to deal with yet another nightmare: surging gasoline prices.

Factors are lining up that could end up pushing gas prices back over $4 per gallon sometime next year. If you're already exasperated about prices at the pump, you're not the only one. Gasoline demand in 2009 has been comparatively low -- take 7.6 million Americans out of the workforce through layoffs -- yet gasoline's price has gone up, not down.

It's risen about 20 cents per gallon in the past month to a U.S. average price of $2.65 per gallon for unleaded regular, according to data compiled by gasbuddy.com. This, when we're heading into December and the winter season -- a time when gasoline demand historically has been at its lowest.

Gasoline demand down, but the price is up. What's going on here? Well, part of the reason is the price of oil, currently around $80 per barrel. Oil -- boosted by the weak dollar and by likely increasing global oil demand during the economic recovery -- has essentially doubled since hitting a post-leverage boom low of about $35 per barrel a year ago.

The other part concerns the business of refining and the nation's refinery system. With oil prices high and gasoline demand low, the "crack spread" -- basically the difference between what refiners pay for oil and the total revenue received for products created from a barrel of crude -- has been low. That's prompted many refineries to reduce capacity: if a refiner can't earn a decent profit refining crude into gasoline (and other products), the company stops refining it.

According to U.S. Energy Information Agency data, refinery capacity utilization was at 80.6% for the week ending Oct. 30, compared to 81.8% for the week ending Oct. 23. Even allowing for normal, seasonal maintenance that decreases refining output, capacity utilization, in normal times, would be closer to 90%. That reduced refining activity also has helped boost gasoline's price.

But the real problem with the above concerns the gasoline market's condition when demand ramps up for seasonal (summer driving) and cyclical (at some point, the U.S. economy will start creating jobs) reasons. Assuming oil prices remain at a high level ($70 to $80 per gallon), rising gasoline demand will cause prices at the pump to jump about 40 cents to 50 cents per gallon.

The spike could be larger in high-cost metro areas like New York, Boston, Los Angeles and San Francisco. A $3.25 national average for unleaded regular would occur in short order.

And there are more-sobering scenarios. Patrick Kerr, managing director of Amerifutures, a commodity and options broker, told DailyFinance Wednesday that $3.25 per gallon could prove to be a low price in the quarters ahead, if the factors he argues are boosting gasoline prices remain in place.

Kerr said six factors are likely to continue to put upward pressure on gasoline prices in the U.S.: 1) more weakness in the dollar 2) increasing oil demand in China, 3) no readily available vehicle fuel substitute for gasoline in the U.S., 4) geopolitical tension, 5) inelastic gasoline demand in the U.S. (people can reduce gasoline consumption only so much), and 6) a lack of new, more efficient refineries in the U.S.

"A $4-per-gallon price is possible by the end of this year, but I think we'll definitely see $4 per gallon in 2010," Kerr said.

The United States is heavily dependent on gasoline. Although alternate fuels are gaining market share, gasoline will continue to make up the bulk of the U.S. residential transportation budget. That points to the need to increase vehicle efficiency. Absent increased efficiency and conservation (reduced driving), consumers' disposable income will be reduced even more, which will act as a drag on U.S. gross domestic product growth.

Bottom Line: Any national economic policy that assumes -- or counts on -- low gasoline prices long-term is inherently flawed.

lets stop relying too much on oil., lets attract more renewable energy investments.,,,we have so much potential be it solar, hydo, geothermal, wind and ocean thermal. ou vast resources can suppliment majority of power we need. we jsut havent realize how much.

Pimentel hits issuance of ECC to Mindoro mining project
By Aurea Calica (The Philippine Star) Updated November 14, 2009 12:00 AM

MANILA, Philippines - Senate Minority Leader Aquilino Pimentel Jr. raised objections yesterday to the Department of Environment and Natural Resources’ issuance of an environment clearance certificate (ECC) to a foreign mining venture in a watershed area in Mindoro in total disregard of the strong objection of the provincial folk against it due to its potentially harmful effects on agriculture and human health.

Pimentel said the issuance of the ECC, which was tantamount to a go-signal to start nickel mining, was the height of insensitivity and arrogance because the local government units and all sectors in Mindoro Occidental and Mindoro Oriental were united against the project due to the environmental havoc it could bring to the agriculture-rich island.

“Environment and natural resources authorities should have disallowed the mining project because watersheds are protected areas and are off-limits to mining,” he said.

“The authority of the DENR to issue mining permits should be exercised based on what is good for the people from whom all the powers of the government emanates,” he said.

Pimentel said it is the government’s duty to protect and uphold the general welfare of the citizens as enshrined in the 1987 Constitution and the Local Government Code.

He added that the Mining Code of 1995 specifically provides the consent of the indigenous people and other residents of communities around mining sites before the government could allow any mining operations.

Pimentel said the nickel project of the Intex Mining Corp. could by no means be justified because it would endanger the critical watershed areas in the mountain range between the two Mindoro provinces.

He said the degradation and destruction of the protected watershed areas would threaten the irrigation of vast agricultural lands and pollute the sources of drinking water of the local populace.

Pimentel reminded Environment and Natural Resources Secretary Lito Atienza that one of his predecessors, former Secretary Heherson Alvarez, in fact, cancelled the permit for the Mindoro nickel project in 2002 because it would cause “irreparable damage to the environment which will cost human lives, health and livelihood incapacity of our farmers and fisherfolk, endangering the food security of our people.”

“The DENR’s action in allowing the nickel mining operation defies logic because the law invoked by the mining proponents, the Mining Code, expressly provides that watershed reservations are closed to all kinds of mining, logging and quarrying activities,” he said.

Pimentel said mining invariably involves the cutting of trees in the forest and the use of toxic chemical substances.

Aside from this, he said mine tailings are dumped into rivers that not only poison and pollute the waters but also cause heavy siltation of waterways.

Bishop Warlito Cajandig, apostolic vicariate of Calapan, Occidental Mindoro, said they are preparing a series of protest actions against the mining project. – With Evelyn Macairan

Otto may drill new wells in Galoc

AUSTRALIAN FIRM OTTO ENERGY LTD. IS eyeing three more prospects in the Galoc oil field in offshore Palawan, to further boost production.

Under the Galoc Phase 2 development options, Otto Energy said the consortium was targeting to increase 2P reserves by 5 million barrels of oil by drilling two new wells, which are estimated to yield about 4,000 barrels of oil per day.

These wells may be drilled in the northern portion of the Galoc structure to access undeveloped reserves.

Otto earlier said the Galoc oil field had another 8 million barrels in gross contingent oil resources in these two new wells. This was on top of the remaining reserves in the field, estimated at 8.4 million barrels as of end June.

Prior to the start of production in October 2008, oil reserves were estimated at 10 million barrels.

The Galoc consortium is expected to undertake seismic interpretation and preparation of drilling costs and schedule starting this year until 2010, Otto Energy said in a regulatory filing.

Otto holds a 31.38-percent stake in Galoc Production Co. WL, operator of the Galoc oil field.

Currently, the Galoc oil field is operating at a rate of 11,500 barrels of oil per day (bopd), down from its initial rate of 18,000 bopd. So far, operating expenses were estimated at $25 a barrel while Phase 1 capital expenditure stood at $13 per barrel.

source: inquirer

Aboitiz prefers ‘clean’ power

By Amado P. Macasaet
Malaya
Insights
Dec. 1, 2009

The looming presence of Aboitiz Power in Luzon might well be described as some kind of "invasion." But that is not what the company is proud of.

What is a source of pride for Aboitiz is that it is helping the environment by going as much as it can into sustainable energy.

Aboitiz Power has so far invested almost $3 billion in power generation in just about two years. More than 50 percent of that amount -- $1.582 billion – went to sustainable energy, principally hydro and geothermal.

In a sought interview, Eramon Aboitiz, president and chief executive officer of Aboitiz Equity Ventures, the holding company, told Malaya Business Insight that his group puts the highest priority on sustainable energy although it has also purchased power plants fired by bunker fuel and coal.

Aboitiz Power’s first purchase in Luzon was the Magat Hydro Electric Plant in Isabela with a capacity of 360 MW. It cost the company $530 million. The firm won the bid for Ambuklao Power dam and paid $325 million for the 175 MW capacity. The company, Aboitiz said, will spent $280 million more to raise the capacity of Ambuklao to 275MW.

It now owns Binga Hydro with a capacity of 100 MW and paid $325 million for it. The most expensive is Tiwi-Makban in Albay, a geothermal project with a capacity of 747 MW for which Aboitiz Power paid $447 million.

All told, acquiring sustainable, non-fossil dependent power plants has cost Aboitiz Power a total of $1.582 billion.

In sum, sustainable energy – hydro and geothermal steam – accounts for 42 percent of total power generation. The share will increase after the expansion of Ambuklao is completed towards the end of next year, according to Aboitiz.

He said Aboitiz Power will continue including no-fossil fuel in its energy mix. Aboitiz Power coined the slogan "Cleanergy" to showcase the sincerity of its mission and vision to use sustainable energy and thus reduce dependence on imported crude oil and coal and help protect the environment although the two latter fuels still account for slightly more than half of total electricity generation.

Having been the highest bidder for the power plants sold by PSALM, Aboitiz Power also has the Pagbilao coal-fired plant with a capacity of 700 MW and which cost $691 million.

Eramon Aboitiz said that the company is also a 44 percent minority partner with the Metrobank Group in a Cebu coal-fired plant.

The share of Aboitiz in the $450 million project is $198 million.

The firm is in a 50-50 joint venture with Taiwan Cogen to generate 300 MW in Subic for a total cost of $500 million.

With more than a thousand-megawatt capacity, Aboitiz Power is probably the single largest power generation company in the whole of Luzon. In addition, the firm also acquired two 15-year old barges. One is moored in Agusan, the other in Davao.

Aboitiz started out in Mindanao as a power distributor in the 1930s, aside from operating a small plant.

Mindanao Light & Power of the Aboitiz family is the biggest distributor of electricity in the whole of Mindanao. But its share is only 20 percent of the market because there are at least 15 players battling each other although their costs and prices are reasonably similar.

The company is almost everywhere. It took over distribution of a generating plant owned by the government of Olongapo City. Aboitiz is proud that the company succeeded in making the operation profitable. It was able to reduce systems losses from more than 8 percent to slightly over 3 percent.

Consequently, the plant with a capacity of 29 MW is now able to contribute about $40 million to the local government of Olongapo.

Higher levels of efficiency were attained after Aboitiz Power reduced the work force from 188 to 40 employees.

The Aboitiz group is also in food and shipping.

The better indication of how it has so far succeeded in the power business is the fact that last year, 70 percent of its net profits came from power.

An even better gauge is the fact that Aboitiz Equity Ventures offered 26 percent of its shares to the public in 2007. The offering produced P10 billion for the company. The opening price was at P5.80 percent. As of Friday last week, the closing was P7.90 although it fell to P3.85 in late 2007.

The records show that the price behavior of Aboitiz Equity Ventures has consistently stayed above the multi-stock index of the Philippine Stock Exchange.

Hydrocarbon strike in Sulu Sea

Editorial
Malaya Business Insights
Dec. 3, 2009

‘If that’s not a cause for optimism, we don’t know what is.’

OFFICIALS of the Department of Energy and ExxonMobil are prudently guarded in their announcement of a "hydrocarbon" strike in the ongoing drilling for oil and gas at the South Sulu Sea. They said they could not yet determine whether the hydrocarbon found was in the form of gas or oil. Much less could they declare that the find was of commercial quantity.

But Exxon, the drilling operator, said it was willing to spend $100 million to drill another well on top the $100 million spent on the first one. Exxon, in effect, is doubling its bet that there is a commercial quantity of gas or oil in the area being explored. If that’s not a cause for optimism, we don’t know what is.

It has been long drought since the first oil discoveries were made in the waters of northwest Palawan in the mid-1970s. Most of the commercial finds – small ones – have long been exhausted (Nido, Cadlao, Matinloc, etc.). An old discovery, the Galoc well, was initially found to be commercially non-viable. It has, however, been in production for about a year now after later studies showed it can be developed profitably at the current high prices of crude. Another well, Tindalo, is also now being readied for commercial production.

(The biggest commercial find, of course, is the Malampaya gas field. Operated by Shell, it is now fueling the natural gas power plants of the National Power Corp. and the Lopezes’ First Gen Group.)

With Northwest Palawan a proven field, attention naturally has gravitated toward it. Here’s where Exxon’s strike in South Sulu Sea gains significance.

Exxon’s drilling is the first undertaken in the area which is considered geologically similar to the proven gas and oil producing areas in Brunei and Sabah. The reason oil exploration companies steered clear of the area were security concerns because of the secessionist insurgency and the high cost of drilling in deep waters.

It took an ExxonMobile, the biggest oil and gas company publicly traded in the world with its deep pockets, to go where wildcatters feared to tread.

And the good news – guarded statements aside – is that there’s oil and gas out there. The Exxon well might prove to be non-commercial, but the presence of hydrocarbon deposits has been confirmed. More drillings can be expected and the chance of making a commercial discovery proportionately rises.

At all cost, A Filipino group should take over Petron.

Guam sale narrows Shell’s options in RP

by Rey Enano
Manila Standard
Dec.3, 2009

It could just be a matter of time before global company Royal Dutch Shell Plc decides to abandon its refining operations in the Philippines. Its Philippine unit, Pilipinas Shell Petroleum Corp., faces little prospects for expansion because of a small domestic market and a less friendly business environment after the government temporarily froze petroleum prices in November.

Royal Dutch Shell’s decision to sell its downstream marketing businesses in North Pacific Islands that include Guam, Saipan and Palau has further narrowed down Pilipinas Shell’s options. Royal Dutch Shell last week sold its retail business in the Pacific islands to IP&E Holdings LLC, a wholly-owned company of the Philippines’ Delgado family for an undisclosed amount.

Royal Dutch Shell said the sale was the culmination of a review of its downstream marketing businesses in the region. The group, instead, will concentrate on larger markets.

“The decision by Shell to move to a distributor model supports its portfolio focus drive and follows a number of similar deals in other countries,” says Shell.

Royal Dutch Shell will likely use the same excuse, if and when it finally decides to call it quits in the Philippines. Chevron Corp., the third oil refiner in the Philippines after Ashmore-controlled Petron Corp. and Pilipinas Shell, earlier abandoned its Caltex refinery operations in Tabangao, Batangas province.

Chevron said its own refinery had reached the “end of its economic useful life” and was too small to effectively compete in the oil industry.

Shell’s ultimate withdrawal, meanwhile, will make Petron a monopoly in the Philippines.

ExxonMobil’s oil discovery

Officials of ExxonMobil Corp. have opted to be conservative in reporting the results of the company’s Sulu Sea drilling operations.

ExxonMobil Exploration and Production Philippines B.V., a unit of ExxonMobil, is nearing its depth target of 5,000 meters at the Dabakan-1 well, about 65 kilometers from Mapun Island, a municipality of Tawi-Tawi province. The oil drilling operations appeared to have produced interesting results.

The grapevine said ExxonMobil Philippines managing director Ian Fischer on Tuesday personally reported to Energy Secretary Angelo “Angie” Reyes the encouraging results of the Sulu Sea drilling. Reyes, after hearing Fischer’s story, summoned print reporters at the sidelines of a conference in Makati to tell them of the “good news.” (ExxonMobil invited Reyes and Energy Undersecretary Ramon Oca to join a tour of the one-hectare big West Aquarius drill ship in Sulu Sea over the weekend.)

Reyes told reporters about the discovery of hydrocarbons (oil and gas) by ExxonMobil during the Dabakan well drilling and the company’s plan to drill a second well in the area next month. Reyes declined to describe the findings as an oil strike or discovery.

Fischer, however, gave a hint.

“Logs taken at the Dabakan-1 well indicate that we encountered reservoir sands and hydrocarbons. The well will be drilled further to a total depth of approximately 5,000 meters [16,400 feet], setting the record for the deepest well drilled in the Philippines,” Fischer said.

“Hopefully, there is encouragement to drill more wells,” he said, adding that “data analysis and additional studies are being conducted to evaluate the potential of the find.”

ExxonMobil could be now conducting tests to determine the initial oil flow rate of the well. Dabakan well, in the meantime, will be categorized as an oil “find” as Fischer put it, or “technically a discovery,” in Oca’s words, pending flow rate tests.

E-mail: rayenano@yahoo.com or business@manilastandardtoday.com

First Pacific cements control over RP mining giant (http://www.philstar.com/Article.aspx?articleId=529069&publicationSubCategoryId=200)
(philstar.com) Updated December 03, 2009 05:13 PM

MANILA, Philippines (Xinhua) – Hong Kong-based investment firm First Pacific Co. Ltd. today said it has become the largest stockholder in Philex Mining Corp. after consolidating its stake in Philex, the country's number one mining company, to 40.7 percent.

First Pacific managing director Manuel Pangilinan announced the purchase of 452 million additional shares in Philex for about P9.5 billion, a 9.2 percent block held by former Trade Minister Roberto Ongpin.

One share was traded for P21, a record- high for Philex, and it will be paid for cash and credit combined.

With this deal, First Pacific will increase its representation in the 10-member Philex board from three to five, while the state- owned Social Security System (SSS) will retain three. Two are independent directors.

SSS remains a significant stockholder with a 22 percent block in Philex, which has a market capitalization of about P93 billion.

Sulu Sea shows signs of oil deposits

By ELLSON A. QUISMORIO
December 12, 2009, 8:02pm
Manila Bulletin

Deposits of hydrocarbon have been discovered via drilling operations in the South Sulu Sea, the Department of Energy (DoE) reported Saturday.

Energy Secretary Angelo Reyes said that evaluating the potential of the find, which came about during drilling under DoE Service Contract 56 (SC 56), would need further data analyses and additional studies.

Reyes also expressed optimism in the potential benefits that the hydrocarbons could bring once it is properly harnessed as a fuel source.

“We recognize the hard work rendered by the contractors in their drilling operations. We also would like to thank them for their strong support to our energy investment program,” he said.

The Dabakan-1 well is located about 65 kilometers (40 miles) from Mapun Island, a municipality under the Province of Tawi-Tawi.

yey, yayaman na tayo!:D:D:D

yey, yayaman na tayo!:D:D:D

Yayaman tayo kung government ang magdri-drill para 100% sa atin lahat ang kita.

Yayaman tayo kung government ang magdri-drill para 100% sa atin lahat ang kita.

oo, pero ang problema pera at technology. mas mahirap nga daw mag drill sa ilalim ng dagat kesa lupa.

^^ kaya for now, partnership na lang muna....

it's better than nothing

PNOC-AFC Industrial Park
gets three ISO certifications

Malaya Business Insights
Dec.15, 2009

The Philippine National Oil Co.-Alternative Fuels Corp.(PNOC-AFC), a unit of state-owned PNOC, has received three certifications from the International Organization for Standardization (ISO).

In a statement, the company said that it is the first government-owned-and-controlled corporation the country to be awarded with ISO 9001:2008 for its industrial park in Bataan.

"Since 2008, the company has exerted a great effort to secure a certification from the ISO. The journey towards the certifications has been long and challenging but indeed very fulfilling," said Romeo Tolentino, PNOC-AFC president and CEO.

"It is with pride and honor that the PNOC-AFC is sharing the good news that we have obtained three prestigious ISO certifications namely: ISO 9001: 2008, ISO 14001: 2004 and Occupational Health & Safety Assessment Series (OHSAS) 18001: 2007," he added.

The ISO 9001: 2008 is a quality management system intended to control processes and ensuring the quality of products and services with main focus on customers’ satisfaction.

ISO 14001: 2004 is the environmental management system aimed at managing environmental aspects, impacts of processes, products and services focusing on pollution prevention.

OHSAS 18001: 2007 is the occupational safety and health Management System intended to manage the conditions and factors that affect the well-being of the company’s employees and other members in the work place with main focus on health and safety of personnel. - John Poquiz

Another Palawan field to produce oil next year (http://www.manilastandardtoday.com/insideNews.htm?f=2009/december/15/news2.isx&d=/2009/december/15)
Manila Standard (http://www.manilastandardtoday.com/insideNews.htm?f=2009/december/15/news2.isx&d=/2009/december/15)
by Alena Mae S. Flores

AUSTRALIAN firm Nido Petroleum expects to draw first oil from the Tindalo field in northwest Palawan by the second quarter next year at the rate of 7,000 to 15,000 barrels a day.

Nido told the Australian Stock Exchange that the company would invest $20 million to bring the first well to production and spend $250,000 a day operating it.

Discovered in 2008, the Tindalo field was likely to have 5.1 million barrels of recoverable oil, the company said.

Nido president Emmanuel de Dios said the company’s final investment decision paved the way for a doubling or trebling of its oil production, whichwould have “a significant impact” on the company’s balance sheet.

“With this project and a host of other exploration activities coming on line, the coming year bodes well for Nido, our partners in the venture and the Philippine oil patch,” De Dios said.

Nido owns 50 percent of the Tindalo exploration block under service contract 54 A. Kairiki Energy, another Australian firm, holds 35 percent, while Trafigura Ventures III BV, one of the largest independent firms trading in commodities, holds the remaining 15 percent.

Nido deputy managing director Joanne Williams said the Tindalo field was Nido’s first operated development and would be “the first of many in SC54A.”

“We expect the development to cost less than $4 per barrel and be in production around 18 months from the discovery of the Tindalo oil field, which compares very favorably with industry standards,” she said.

She said other major equipment and services contracts would be placed in the coming weeks.

Nido is an oil and gas exploration and production company with over 29,450 square kilometers of contiguous exploration and development assets in the northwest Palawan basin.

It also has stakes in SC 54B (60 percent) and SC 58 (50 percent). Nido has a 50-percent non-operated interest in SC 63.

Nido’s core producing asset is the Galoc oil field of which Nido has a 22.879-percent non-operated interest. Galoc, which started oil production in October 2008, lies in 300 meters of water some 60 kilometers off Palawan.

Petron earmarks P10 billion for refinery upgrade

By Zinnia B. Dela Peña
(The Philippine Star)
Updated December 16, 2009 12:00 AM

MANILA, Philippines - Petron Corp. is allotting P10 billion over the next three years for the rehabilitation of its refinery’s power generation
system to meet its growing steam and power requirements.

In a filing with the Securities and Exchange Commission, Petron said the system is being upgraded to a more efficient technology to improve the reliability, sourcing flexibility and cost efficiency.

The company is considering further upgrading its refinery to higher conversion capability that will completely eliminate production of the low value fuel oil and increase production of higher margin products. The project is estimated to cost around $1 billion over a five-year period.

To further strengthen its leadership in the domestic oil industry, Petron will continue its service station network expansion with around P1 billion to be spent over the next five years.

Funding for its projects will come from a planned preferred share offering, estimated to generate as much as P10 billion, as well as internally-generated funds and borrowings from the local and international debt markets.

The company is planning to sell 30 million to 60 million preferred shares with an oversubscription option of between 20 million and 40 million shares at P50 to P100 apiece.

Petron said it may also use proceeds from a preferred share offering to prepay short-term debt or invest in special savings or other short-term money market instruments. As of end-September 2009, the company had consolidated short-term debt of P45.6 billion.

The preferred shares will be listed on the first board of the Philippine Stock Exchange. They are non-voting and non-convertible with a par value of P1 each share and are redeemable at the option of the company.

The oil firm has taped BDO Capital & Investment Corp., BPI Capital Corp. and ING Bank N.V. (Manila branch) as joint lead managers and bookrunners for the issue.

In May this year, Petron also issued P10 billion worth of five-year and seven-year fixed-rate corporate notes. The issue, one of the largest corporate note issuances in the history of local debt capital markets, was more than three times oversubscribed.

Petron is the market leader in the domestic oil industry with an overall market share
of 36.4 percent as July 2009. It has the biggest refining capacity, most extensive distribution network and most number of service stations.

Petron has a capacity of 180,000 barrels per day and supplies nearly 40 percent of the Southeast Asian country’s fuel requirements.

In the past few years, Petron has invested more than $400 million in its refinery to ensure the local production of Clean Air Act-compliant fuels.

In the nine months ending September this year, Petron reported a 21 percent growth in net income to P3.37 billion from only P2.78 billion the previous level. Total assets stood at P117.1 billion while stockholders’ equity was at P36.3 billlion.

As of September 30, 2009, Petron had a total market capitalization of P47.8 billion.

Phoenix Petroleum to spend P500M for expansion next year (http://www.malaya.com.ph/12182009/busi8.html)

Independent oil player Phoenix Petroleum yesterday said that it would spend P500 million for its expansion next year.

In an interview, Dennis Uy, Phoenix Petroleum president and CEO, said that P200 million would be spent for the construction of retail stations. The other P300 million, he said, would be used to put depots and infrastructure for logistics.

Uy said that the company is planning to put up 40 to 50 stations in Luzon and Mindanao next year.

"The 40 to 50 stations is a mix of station to be setup in Luzon and Mindanao. You can say that we are the fastest growing independent oil firm," Uy said.

Before the end of this year, Uy said, the company will already have 22 stations in Luzon.

Phoenix was listed in the Philippine Stock Exchange, and was the first oil company to be listed in the bourse following the passage of the Oil Deregulation Law of 1998.

swerte talaga ni aling gloria....daming positive things happening sa panahon nya.....just imagine the taxes that could be generated from those oil wells.....it will be a big help.... double blessing yan sa bayan......hindi na lalabas ang pera dahil mababawasan na ang bill natin sa oil.....kikita pa ng pera sa tax...ng ipoproduce na oil...

^^Swerte coupled with skills...When it comes to figures, PGMA I think had done a very good. Considering the global economic situation and considering how screwed up our political sytem is, I think PGMA has got to be the most underrated president the Phils has ever had...

^^ I agree with you.. dami kasi nia kaaway

anyway... i think mas swerte ung susunod na president.. compared nung umupo si GMA.. sobrang bigat ng problemang iniwan ni Erap.

yey, yayaman na tayo!:D:D:D
bakit ngayon lang,ngayon naglilitawan na ang mga alternative fuels

Yayaman tayo kung government ang magdri-drill para 100% sa atin lahat ang kita.

At kung 100% ng pinas government gagawa nyan, mas ilang taon pa ito madedelay kasi wala tayong drilling technoliges at hands, and mostly, wala pa tayong sariling gamit, nasan ngayon ang pambili natin? Walang private companies na basta basta magbebenta ng gamit nayan kung di natin sila isasama sa business.

^^ I agree with you.. dami kasi nia kaaway

anyway... i think mas swerte ung susunod na president.. compared nung umupo si GMA.. sobrang bigat ng problemang iniwan ni Erap.

Napaka tanga kasi ni erap eh. Mas lalong tanga yung mga bumoto sa kany nun. :lol:

Napaka tanga kasi ni erap eh. Mas lalong tanga yung mga bumoto sa kany nun. :lol:

ang sakit mo mag salita, meron pa namn mga erap supporters dito:D

:lol:

GMA pa rin toink:D

bakit ngayon lang,ngayon naglilitawan na ang mga alternative fuels

ito dahil sa magandang investment climate at pagpupursigi ni PGMA na magmamakaawa:D sa mga investor:D

At kung 100% ng pinas government gagawa nyan, mas ilang taon pa ito madedelay kasi wala tayong drilling technoliges at hands, and mostly, wala pa tayong sariling gamit, nasan ngayon ang pambili natin? Walang private companies na basta basta magbebenta ng gamit nayan kung di natin sila isasama sa business.

Kaya nga.. Kung mag-iinvest tayo ng drilling technologies ay tyak naman mababawi agad iyon at malaki ang balik sa atin. Kung karampot na shares nga lang este TAX, malaki na eh. :lol:

^^ drilling technologies are hard to acquire.. multinational companies would not readily sell them to other countries without a reasonable partnership.

We can only achieve a 100% ownership if we have the existing technologies to ourselves.
what the Philippines can do is to invest in Research and development.. and from there we can develop our own technologies. But that would take considerably large amount of time and money.

If we are to hurry these oil developments, partnership with these Experienced companies with available technologies are the fastest way to do business.

^^Swerte coupled with skills...When it comes to figures, PGMA I think had done a very good. Considering the global economic situation and considering how screwed up our political sytem is, I think PGMA has got to be the most underrated president the Phils has ever had...

can't agree more....kung sino pang presidente ang maraming output real hindi imagined...yun pa palagi ang tinitira ng media...she is hardworking and not afraid to take tough decisions...hindi mapabagsak bagsak ng kung anong coupkurukuku...respected sa world arena...respected ang opinion nya sa economy ng international community...kaya palagi syang invited...sa mga economic fora....

her travels abroad ay pinupuna dahil marami...kasi maraming nagiimbita at marunong mag strategize kung san ang mga bansang dapat lambingin at pasukin....sabi ni erap sa panahon nya konti lang daw ang travel nya....kasi walang nagiimbita...:lol: tuwing lumalabas ng bansa...matatakot ka na baka pagbuka ng bibig kung ano-anong walang kwenta ang iluwa...:lol:

^^ HEHE

can't agree more....kung sino pang presidente ang maraming output real hindi imagined...yun pa palagi ang tinitira ng media...she is hardworking and not afraid to take tough decisions...hindi mapabagsak bagsak ng kung anong coupkurukuku...respected sa world arena...respected ang opinion nya sa economy ng international community...kaya palagi syang invited...sa mga economic fora....

her travels abroad ay pinupuna dahil marami...kasi maraming nagiimbita at marunong mag strategize kung san ang mga bansang dapat lambingin at pasukin....sabi ni erap sa panahon nya konti lang daw ang travel nya....kasi walang nagiimbita...:lol: tuwing lumalabas ng bansa...matatakot ka na baka pagbuka ng bibig kung ano-anong walang kwenta ang iluwa...:lol:

anong magagawa mo, madaming bobo. hahaha tanungin mo kung ano nagawa ng ibang presidente babanatan ka ng kung ano ano pero di titingnan kung kanino galing ang gabundok na problema na nagawan ng paraan ni Gloria.

Ilan ba ang oil reserves ng pilipinas?

Ilan ba ang oil reserves ng pilipinas?

millions of barrels to last us for about 15 years....ba medyo marami na yun..tsaka by the time na maubos na yun...meron na ulit nadiskubre na ibang oil wells....

anong magagawa mo, madaming bobo. hahaha tanungin mo kung ano nagawa ng ibang presidente babanatan ka ng kung ano ano pero di titingnan kung kanino galing ang gabundok na problema na nagawan ng paraan ni Gloria.

noong panahon pa lang ni Marcos ay mayroon nang oil production sa Palawan,
hindi ngayon lang sa panahon ni GMA.

anong gabundok na problema? ang problema ay yaong gabundok na pandaraya ng boto noong last presidential election.

at gabundok na corruption, commisions, percentages, lagay, etc sa mga infrastructure project na inutang lang na may malaking patubu sa MGA foreign banks.

by the way these oil fields in Palawan were producing Oils in commercial quantity even before GMA became President.


http://i581.photobucket.com/albums/ss259/lemuel123/Palawanoilfields.jpg

^^But off course we were producing oil in Palawan even before PGMA's presidency. It's just plain fact...However there were also already BPOs before PGMA and even before Erap's time. I dont think its fair to say that since there were BPOs before PGMAs time then having dozens more during her time wasnt a big of a deal now would it?

PGMA corrupt and cheated on the elections? Maybe. Heck, let me go on limb and say even possibly...
PGMA has tangeable proof of accomplishments? Most definitely...

Im sightings facts here. Wether I am or have I even been a PGMA supporter is another story. As one can damn PGMA to hell for what she is accused of doing then the same should also laud her for what she has actually done right...

Oh yeah, Oil and Natural Gas Industry...One of the reasons why drilling is active during these times is because oil prices are at an all time high. High oil prices has made the cost of drilling and searching for oil in Phils more economically feasible...

noong panahon pa lang ni Marcos ay mayroon nang oil production sa Palawan,
hindi ngayon lang sa panahon ni GMA.

anong gabundok na problema? ang problema ay yaong gabundok na pandaraya ng boto noong last presidential election.

at gabundok na corruption, commisions, percentages, lagay, etc sa mga infrastructure project na inutang lang na may malaking patubu sa MGA foreign banks.

by the way these oil fields in Palawan were producing Oils in commercial quantity even before GMA became President.


http://i581.photobucket.com/albums/ss259/lemuel123/Palawanoilfields.jpg

Do you have a factual evidence when you say she cheated? Not just hearsay or what you've read in the newspaper or watched on tv. If you have a first hand knowledge about the cheating I will support you and even walk by your side to go to the court and sue GMA. I for one will not condone cheating as I hate it as much as you do but I immensely dislike people who accused other people without substantiating their claim. It is but a sign of ignorance and arrogance at the same time.

But surely you must agree, with all the hullabaloo against PGMA, she did achieved many things. If she didn't do what she had done where do you think the Philippines be after the Global Financial Crisis?

^^ Well said. thank you

about corruption..
do not blame the president alone, why not also blame the senators, congressman, governors, mayors, councilors, barangay captains..etc etc..
sadly, even YOUNG SK CHAIRMANS are well known for corruption...

bakit walang rally against them? it is really obvious, rallies against the president is just politically motivated.. coz if not.. anti-corruption rallies would also target other politicians as well, and not just the president.

Do you have a factual evidence when you say she cheated? Not just hearsay or what you've read in the newspaper or watched on tv. If you have a first hand knowledge about the cheating I will support you and even walk by your side to go to the court and sue GMA. I for one will not condone cheating as I hate it as much as you do but I immensely dislike people who accused other people without substantiating their claim. It is but a sign of ignorance and arrogance at the same time.

But surely you must agree, with all the hullabaloo against PGMA, she did achieved many things. If she didn't do what she had done where do you think the Philippines be after the Global Financial Crisis?


In this God forsaken country don't ask for factual evidence, those with factual evidence will get killed or disappear, are you born yesterday. Do you know about the desaparicidos, those Pinoy who have the courage to expose corruptions and bad governance, they just disappeared if not killed.

Those who have knowledges about cheatings were either already bought by your idol's evil people, they chose to keep quiet for safety reasons, or already dead.

Substantiating claims? How ? In this corrupted country even in a simple crimes, the people where afraid to open their mouths or became a witness.
You cannot even trust a lawyer, a judge, Congressman and other government bureaucrats and politicians or anyone since in this country everybody can be bought (except the rightist and leftist nationalist) it only depends on the price.

By the way, Before I am also a GMA followers, I am of those nationalist who tried to defend her and her Admin during the EDSA 3 or the Mob power, when the Erap forces attacked Mendiola and Malacanang during the eve of May Day Year 2001. We were trapped lated in San Beda...... the rest is history.
Afterwards we found her true color.



------------------------------------------------------------------
One example of the evil that is happening is this :

From Ellen Tordesillas Blog

Pagpapatawad kay Gloria ArroyoKapag panahon ng Pasko, madalas sabihin magpapatawad at magbati tayo sa ating mga naka-away.

Medyo mahirap gawin yan kay Gloria Arroyo at sa kanyang mga kampon kasama na doon ang pamilyang Ampatuan. Paano ka naman magpapatawad kung wala ka namang nakitang pagsisisi?

Tinitingnan ko sa TV si Mayor Andal Ampatuan Jr. noong dinala siya sa Department of Justice para sa preliminary hearing at parang maluwag ang turnilyo nito. Duwag pala itong halimaw na ito. Nang hiniwalay siya sa kanyang abogado, nagmamaka-awa siyang, “Atty, huwag mo akong iwan.”

Ito ang taong walang- awang nagpatay ng 57 na taong walang kasalanan sa kanya. Hindi siya sinagi, hindi siya sinaktan. Ngunit basta lang niya pinagbabaril na parang mga manok.

Habang pinapanood ko ang interview ni Anthony Taberna kay “Abdul” ( hindi niya totoong pangalan) ang lalaking nagsabi na sampung taon pa lang siya ng kinuha siya at tinuruan ng mga Ampatuan pumatay, na-alaala ko ang “Blood Diamonds”. Di ba doon sa pelikula, hinanap nina Leonardo di Caprio at ang tatay ng bata ang kampo kung saan sinasanay ang mga bata magiging killer. Meron palang ganoong kampo sina Ampatauan sa bundok ng barangay Upi sa Maguindanao.

Sinabi ni Abdul na mga 30 silang mga bata na sinasanay maging killer. Labin-dalawang taon lang siya ng pumtay siya ng isang councilor na kalaban ng mga Ampatuan. Kahit hindi niya deretso kausap ang mag-amang Ampatuan, sabi ni Abdul sa kanila nanggagaling ang order. Sabi niya, hindi sila nagtatanong kasi, “Kapag may magtanong, patay agad.”

Ang isang assignment rin na ginawa ni Abdul ay noong Nobiembre 2, 2002 sa opisina ng Commission on Election sa Intramuros. Sina Atty. Felix Lidasan, ang kanyang pinsan na magkakapatid na sina Armando at Jamal Macapeges. “Tatlo ‘yon. Hinabol ko nga, hinabol ko pa. ‘Yong dalawa, on the spot, patay. ‘Yong isa, nasa ospital nang mamatay. ”

Nandun sina Lidasan at Macapages sa Comelec para i-follow up ang kanilang protesta laban kay Matanog mayor Nasser Imam, bayaw ni Anwar Ampatuan, mayor ng bayan ng Shariff Aguak.

Ngunit sabi ni Abdul ang nakunsensya siya na assignment ay pagpatay ng mga pamilyang kababayan niya na ayaw iwanan ang lupang nakursunadahan ng mga Ampatuan. “”Sinusunog ‘yong bahay. Nasasagasaan pati ang bata, matanda. Inuubos namin ‘yon. Walang makababa eh. Pero gabi, gabi namin ginagawa. ”

Nakakulong ngayon si Abdul sa Sultan Kudarat provincial jail ngunit paminsan-minsan raw nilalabas siya kapag may gustong ipapatay ang mga Ampatuan.

Ngayon, paano ka magpapatawad sa mga ganitong tao?

Ngunit kay Arroyo ko pa rin binibigay ang responsibilidad dahil hindi maaring hindi niya alam itong mga bagay na ito. Ano ang ginagawa ng military? Ano ang ginagawa ng mga pulis?

Hindi natin dapat kalimutan na kaya nagpatuloy si Arroyo sa Malacañang kahit hindi siya binoto ng taumbayan noong 2004 na eleksyun dahil inayos ng mga Ampatuan (kasama na rin ang mga Mangudadatu) ang mga boto sa Autonomous Region for Muslim Mindanao lalo na sa Maguindanao.

Huwag natin kalimutan na habang ginagawa ni Mayor Andal Jr ang karumal-dumal na krimen noong Nov. 23 sa Maguindanao, ang kanyang kapatid na si Zaldy, ARMM governor, ay nasa Malacañang kasama si Arroyo. Ganyan ka-close ang mga Ampatuan kay Arroyo.
May pagsisisi ba si Arroyo ss kanyang responsibilidad sa pag-alaga ng mga halimaw na Ampatuan? Wala tayong narinig. Lalo pa niya tayong niloko sa pagdeklara ng martial law.
Dapat ba natin patawarin si Arroyo?

December 21, 2009 8:48 pm Tags: Gloria Arroyo, Maguindanao massacre Posted in: Abante, Gloria Arroyo and family


http://www.ellentordesillas.com/?p=8923&utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+EllenTordesillas+%28Ellen+Tordesillas%29&utm_content=Yahoo%21+Mail

^^ Well said. thank you

about corruption..
do not blame the president alone, why not also blame the senators, congressman, governors, mayors, councilors, barangay captains..etc etc..
sadly, even YOUNG SK CHAIRMANS are well known for corruption...

bakit walang rally against them? it is really obvious, rallies against the president is just politically motivated.. coz if not.. anti-corruption rallies would also target other politicians as well, and not just the president.

Actually the whole country, from Malacanang to Barangay levels, the elite rich and the Masa were already corrupted by the system.

And worst thing, in this country their is a culture of impunity.... and worst thing those people, families, friends, etc of the Administration is the one doing the big scale corruptions. Dapat sila ang nagbigay ng good example pero sila pa ang mastermind sa mga corrupt practices.

Remember the Fertilizer Scam, NBN ZTE deal, etc. Those were not invented by the opposition parties or the Media.

^^
I rest my case, it seems to me that some people here thinks that they have monopoly of knowing and finding the truth.

A blog a freaking blog to assert your point. What a Freaking Joke.

napunta na kung saan-saan ang thread na ito sa corruption kay ampatuan.... oil thread ito....focus focus....dapat at facts naman wag puro opinion....

facts....

oil finds was already present during the marcos era....but not in commerical quantities...still it saved us a little forex a big help..

oil and gas finds during pgma's time is big and of commercial value....(swerte talaga ng maliit na ale ano) how this did come into being...hinid lang puro swerte ito..its because pgma supported and encourage this kinds of investment...kasama na ang mining...ang tinanim niya inaani na nya ngayon...hindi ba kayo nagtataka bakit biglang narenovate bigla ang jolo airport pinalaki, pinahaba bigla....yup it has oil written all over it....

bpos...during the times of marcos meron na rin nun...pero its only pgma's time na ginamit itong haligi sa job creation kaya biglang nagsulputan na kabute ang mga call center sa buong bansa....si pgma lang ang nakapag isip ito ni hindi ito sumagi sa isip ni cory, ramos o lalo na ni erap...imagine we are seriously challenging india in this industry...dahil yan sa economic acumen ng presidente hindi swerte lang yan....nagiisip at nagtatrabaho ang presidente hindi puro emosyon at people power sa kalye...tapos magrereklamo na kumakalam ang mga sikmura...

oil and gas may be the saving solution to our money woes...i can only commend the president...for being a visionary....hindi ito maintindihan ng maliliit na utak...pero years later....they will realize that pgma is the best president that this country ever had....in recent times....yung pgma bashing.....at make a checklist and compare the tangible achievement of each president and you will come to realize na milya pala ang layo ng accomplishments na nagawa ni pgma kesa sa mga mababait at papogi na predecessors niya...dito na ako kay taray na may achievements kesa sa mabait na wala naman magawa sa mga problema na kinaharap nila...amen?

millions of barrels to last us for about 15 years....ba medyo marami na yun..tsaka by the time na maubos na yun...meron na ulit nadiskubre na ibang oil wells....

^ wow..malaki pala...sana mapakinabangan ng pilipinas yan...this will definitely cut the import of our country...this also mean that the money supposed to be used to buy this oil will no longer slip outside of the philippines, instead it will just circulate in the local economy which is healthy!

at pasalamat tayo na investments on this field is encouraged by the president...imagine kung nakinig lang siya sa simbahan na wag ipa mina ang ating natural resources...ano kaya mangyayari wala naman tayong pera para mag drill....at expensive ang mag drill ng langis....

^yung pag mina sa dagat ok lang yun kasi pipe lang yung tumutusok sa ilalim ng dagat after ma discover ang langis pero yung pag mina sa lupa...pangit yun at sana ipagbawal kasi sinisira nito ang kabundukan at kagubatan natin...

magkano kaya ang hiningi nilang LAGAY mula sa multi-national Oil Exploration companies ?

could you please stop it. dalhin mo kaya doon sa corruption thread reklamo mo.:D:D:D





posible kayang maging oil exporting country na tayo?

teka export nga ang oil natin sa Korea, so oil exporting and importing country na tayo?:D

The Galoc production, combined with the current oil production in other wells in the country, will be over 30,000 barrel of oil per day, accounting for about 10 percent of the country’s daily oil consumption.

“The President is optimistic that this new development will positively impact on the administration’s efforts to reduce the country’s annual oil importation of $6 billion, and in turn will also contain the increasing cost of food and other commodities,” Ermita said.

He said the oil production from Galoc would also translate to about $1.4 billion in foreign exchange savings for the country, since the oil well’s lifetime estimate runs to about three to five years.

The Galoc Field was discovered in 1981, but the oil field was not developed due to the combination of risks associated with the reservoir and low oil prices.

Since then, advancements in technology have improved the capability of defining the reservoir and resulted in the need for fewer wells to access the reserves than previously necessary.
This has been successfully achieved with the recently drilled horizontal development wells Galoc-3 and Galoc-4.

Presently, production is from the first well, with the second well due to come on-line shortly.


http://www.palawan.com/articles.php?article_id=159

..................................................................

this proves that advancement of technology is the main reasons for the self-sufficiency for the Philippines not because of GMA efforts of which some here is trying to imply.

Do you have a factual evidence when you say she cheated? Not just hearsay or what you've read in the newspaper or watched on tv. If you have a first hand knowledge about the cheating I will support you and even walk by your side to go to the court and sue GMA. I for one will not condone cheating as I hate it as much as you do but I immensely dislike people who accused other people without substantiating their claim. It is but a sign of ignorance and arrogance at the same time.

But surely you must agree, with all the hullabaloo against PGMA, she did achieved many things. If she didn't do what she had done where do you think the Philippines be after the Global Financial Crisis?


Very well said!

Lahat ng mga economic saboteurs ni PGMA mga uhaw din sa kapangyarihan....puro grandstanding wala namang nagawa para sa bayan. They are also corrupt officials like opositions kaya tama na patutsadang walang katuturan :bash:

magkano kaya ang hiningi nilang LAGAY mula sa multi-national Oil Exploration companies ?


Itanong mo kaya sa avatar mo! pero wag ka baka sampalin ka nyan dahil tamang hinala ka lang :bash:

http://i581.photobucket.com/albums/ss259/lemuel123/kalayaan.jpg

Limiting Palawan's jurisdiction isn't just about who gets control of $10 biilion in revenues

The position of the national government that the Malampaya natural gas project is outside the territory of Palawan province has implications more far-reaching than cornering the entire $8.1 billion to $10 billion expected revenues from the reservoir, experts say.

Should the court decide in favour of Malaca�ang, Palawan will lose its entitlement to multi billion-dollar earnings not just from Malampaya but from 2 other commercially viable oil fields in its waters, Galoc and Nido-Matinloc.

Aside from these, there are more than a dozen other explorations in the waters around mainland Palawan for potential oil and gas deposits. In other parts of the country, 19 other explorations are being conducted, although most of them are inland.

Legal experts also say that if the national government will not recognise Palawan's jurisdiction over Malampaya, it will weaken the country's territorial claim on the Spratlys islands in the South China Sea.

Effectively shrinking Palawan's territory will place the Philippine farther from the Spratlys; currently, it is the claimant country nearest the oil-rich group of islands.


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The case filed by the provincial government of Palawan against the national government, to invoke its right to get legally mandated 40 percent of the gross revenues from the Malampaya project, has reached the Supreme Court. Another case questioning the legality of an interim agreement between the Palace and Palawan, which reduces to 20 percent the province's share, has been consolidated with the first case. Oral arguments were heard on Tuesday.

41 million barrels

The Malampaya reservoir is estimated to have recoverable reserves of 2.7 trillion cubic feet of natural gas reserves and 85 million barrels of condensate. While operational since 2001, it is expected to produce oil in 2010, estimated to reach as much 41 million barrels, according to the US Energy Information Administration website. (Current world market prices peg a barrel of oil at $70).

The project is operated by a consortium composed of Shell Philippines (45 percent) and Chevron-Texaco (45 percent). The government has a 10 percent stake in the project through the Philippine National Oil Company-Exploration Corporation (PNOC-EC), the oil and gas subsidiary of the state-owned PNOC.

The national government expects revenues of $8.1 billion to $10 billion from the project. Of this amount, Palawan is claiming a share of $2.1 billion, citing a provision in the Constitution that the locality where natural wealth is exploited and developed is entitled to a just share in the revenues from the undertaking. The Local government Code sets the local government units' share at 40 percent of gross revenues.

Palawan's jurisdiction over Malampaya and the 60-40 revenue sharing scheme between the national and local governments have been acknowledged by past presidents. President Arroyo acknowledged these, too, early in term. She changed her mind when the commercial operations of the project started in October 2001 and she was told of the estimated earnings.

The national government contends that Palawan's jurisdiction ends 15 kilometers into its municipal waters. Since Malampaya is located 80 kilometers from the shore of El Nido town, the Palace says, it is therefore outside the province's territory.

"Beyond this limit, the authority and jurisdiction to enforce the laws of the Philippines rests with the National government through the Philippine Navy, Philippine Coast Guard, Philippine National Police-Maritime Command, and the Department of Agricultutre," the national government's petition for review filed in February 2006 reads.

Highest concentration

Local officials are worried that the result of the legal battle over Malampaya would also affect the sharing scheme from the revenues of other petroleum production activities in Palawan.


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In fact, a court decision upholding the national government's claim of jurisdiction over Malampaya would affect the 13 other explorations, and therefore potential commercial projects, around mainland Palawan.

The bodies of water surrounding Palawan are host to commercial oil and natural gas fields that comprize a huge chunk of the petroleum reserves of the Philippines.

"The Philippines is surrounded by oil-rich basins of Indonesia, Sabah, and China," an energy industry expert, who asked not to named, told Newsbreak. The area around Palawan, he said, has high potential for oil discovery.

A list of service contracts from the oil and gas division of the energy department showed that of the 34 service contracts for oil exploration as of March 2009, 15 are surrounding mainland Palawan. (See the list and map of petroleum service contracts as of March 25, 2009.)

"Most of our discoveries are in Palawan, especially in the northwest portion of Palawan where Malampaya is," energy undersecretary Ramon Allan Oca told Newsbreak, adding that the province's geology is similar to its oil-rich neighbours Malaysia and Indonesia.

The northwestern side of Palawan alone, the industry expert told Newsbreak, has a discovery rate of 47 percent, which is higher than in other parts of the country. In Southwestern Palawan, it's 28 percent; Southeastern Luzon, 20 percent; Cagayan Valley 18 percent; Sulu Sea, 12 percent; and the Visayan Basin, 9 percent.

Galoc proceeds

The northwestern portion of Palawan is also the area where two other wells are located, Galuc and the Nido-Matinloc. (See the map showing location of Malampaya, Galoc and Nido-Matinloc.)

Galoc, an oil field where operations started in October 2008, is said to have a potential oil reserve of 10 billion barrels. On its first 90 days, it produced 20,000 barrels a day, which is equivalent to 6 percent of the daily demand for oil.

Like Malampaya, it is on northwestern Palawan. Located 70 kilometers west of Culion Island, Galoc, like Malampaya, is beyond the 15-kilometer municipal waters where the province has jurisdiction, according to Malaca�ang's definition.

Definite proceeds from the Nido-Matincloc operations are difficult to estimate it because production there is cyclical�there are periods that there are no production.

This early, Palawan vice Governor David Ponce de Leon expressed concern that an unfavourable decision on the Malampaya case will affect their claim on the shares from the Galoc oil field, which is located about the same distance as Malampaya.

The decision may eventually force a review of the Palawan government's revenue share from the oil production in West Linapacan.

The West Linapacan oil fields are also outside the 15-kilometer municipal waters of the province, but Palawan received P116 million from their operations from 1992 to 1998. (See the certification showing amount of oil revenues received by Palawan from 1992-1998. )

The amount, as certified by the provincial treasurer, represented Palawan's 40 percent share in the oil revenues from West Linapacan oil fields.

Discovered in 1991 by Alcorn Petroleum, the West Linapacan field was producing 17,000 barrels of oil per day (BOPD) and produced a total of 6 million barrels of oil when its operation was suspended in January 1996.

LGU authority

Governance experts are of the opinion that the authority of the local government units on the Malampaya project has been established.

Local officials said that when the Malampaya project was still on its initial stage, the contractors or operators sought the endorsements of the municipal government of El Nido and the provincial government of Palawan.

Antonio La Vina, dean of the Ateneo School of government and former environment undersecretary, told Newsbreak that local governments usually give endorsements to obtain the environmental impact assessment of the project.

"I do not think it has ever been an issue to the operator that local governments had jurisdiction," La Vina said in an e-mail interview.

When the case was being heard at Regional Trial Court in Palawan, local officials presented the environmental compliance certificate of the project to prove that it is located northwest of Palawan, and a declaration from the provincial assessor to show that the project is subject to the taxing powers of provincial government.

Alex Brilantes, dean of the University of the Philippines National centre for Public Administration and Governance, said that these permits and endorsements from Palawan showed that the local government exercise jurisdiction on the project.

"These are recognitions of the authority of the LGU on such resources," Brillantes told Newsbreak.

El Nido Mayor Leonor Corral told Newsbreak that all activities of the project pass through El Nido and that their municipality is the host of the Joint Task Force Malampaya, which safeguards the project.

"The lot where the task force is headquartered was given by the municipality," Corral said.

Lawyer Harry Roque, one of those questioning the interim revenue-sharing agreement between Palace and Palawan, said that the "local versus national territory" issue should not be raised om the first place because the Philippines is a unitary and not a federal state.

"Everything is national jurisdiction except that there is constitutional provision and a legislative policy which allocates 40 percent of gross [revenues] to local government units," Roque said, referring to the Local government Code provision.

"In case that a crime happens there (Malampaya project), who will prosecute? It's the regional trial court in Palawan. In case of tax on concession agreements that has a local tax, who will collect? It's the municipality in Palawan," Roque said.

Distance to Spratlys

Aside from the impact of the Malampaya case on the revenue-sharing scheme between the national and local governments, it may either weaken or boost the Philippine claim on the Spratlys, a chain of islands believed to be rich in petroleum resources.

The Philippines is one of the claimant countries to the Spratlys, which has oil deposits ranging from 2 billion to 200 billion barrels, according to various estimates by local and foreign scientists and engineers.

The country, aside from being nearest the contested islands, has initial geologic evidence that its continental shelf in Palawan was once connected to the Spratlys.

Should the Philippines get its hands on the Spratlys oil reserves, it can cover its petroleum requirements for 15 to 215 years. (Read "Making A Claim." )

However, says Roque, who is an expert in international law, if the national government will say that Malampaya, which is approximately 80 kilometers from the coast of mainland Palawan, is not part of the province, it's effectively placing the territory farther from the Spratlys.

Palawan Governor Joel Reyes told Newsbreak that saying that Malampaya is not part of Palawan is tantamount to saying that Kalayaan Islands Group (the local name of the Spratlys) is also not part of their province.

"Our last municipality is Kalayaan and Malampaya is nearer to mainland Palawan. If you say that Malampaya exploration is outside Palawan, it's like saying that Kalayaan is not part of the Philippines," Reyes said.

Kalayaan became a municipality of Palawan on June 15, 1978 by virtue of former President Ferdinand Marcos Decree No. 1596.

Palawan vice Governor David Ponce de Leon, a lawyer, told Newsbreak that the fact that Malampaya is nearer to mainland Palawan than Kalayaan is strong proof that they have jurisdiction over the project.

"If Kalayaan, which is 300 kilometers from Palawan is part of the province, how can this 80-kilometer [far] natural gas project be not within Palawan?" he said.

http://www.abs-cbnnews.com/nation/regions/09/02/09/malampaya-case-affects-other-oil-fields-spratlys-claim



http://www.intellasia.net/news/articles/resources/111273437.shtml

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ExxonMobil has struck a hydrocarbon deposit in the previously unexplored deep waters of the South Sulu Sea, the first major find in 40 years after the discovery of oil offshore northwest Palawan.

But Exxon is not declaring a commercial find pending completion of tests and the drilling of another well scheduled to start the middle of the month, Energy Secretary Angelo Reyes said yesterday.



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The target of the ongoing drilling is a structure which is estimated to hold up to 750 million barrels, a volume good for seven years at the current domestic consumption of 275,000 barrels a day.

Exxon also has yet to determine if the hydrocarbon deposit is in the form of oil or gas, Reyes said.

"A lot more work and a lot more testing. We are pleased to announce that we can graduate from being cautiously optimistic to being reasonably optimistic," he said.

"We are not declaring commerciality. What we can say now is that it's not a dry well, there is reason to explore," he added.



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Exxxon spent $100 million for the first drilling and will spend another $100 million for the second.

Ian Fischer, managing director of ExxonMobil Exploration and Production Philippines, said: "We are encouraged enough to drill a second well but there is a lot more that we have to do, including the analysis of the well we are drilling now, which will probably finished in a week or two."

"We're still doing the analysis. We know it's hydrocarbons and laboratory tests are still being run right now," he said.



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The drilling was started in September using the semi-submersible rig Seadrill West Aquarius which is capable of operating at water depths of 3,000 meters and drilling to a depth of 10,000 meters.

The Exxon exploration area is covered by Service Contract No. 56. The 8,200 square kilometer service area is about 900 kilometers southwest of Manila and 200 kilometers northwest of Bongao, the capital of Tawi-Tawi province.



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ExxonMobil Exploration and Production Philippines is the operator with a 50 percent interest in SC-56. Mitra Energy (Philippines SC-56) Limited and BHP Billiton (International Exploration) Pty Ltd each have a 25 percent interest. The Sulu Sea region is considered geologically similar to the neighboring oil-producing areas of Brunei and Sabah.

It, however, remained unexplored for so long because of security worries and the high cost of drilling in deep waters. It took an Exxon, the world's largest publicly traded international oil and gas company, to pioneer exploration in the area.

http://www.malaya.com.ph/12022009/busi1.html

http://www.intellasia.net/news/articles/resources/111281165.shtml



VIDEO of Oil exploration in Sulu.

http://www.gmanews.tv/video/51561/oil-exploration-in-south-sulu-sea-ongoing

Misuari to question Sulu Sea oil exploration and drilling.


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Saturday, 19 December 2009
By JOSEPH ARNEL DELIVERIO
Sibugay Express and VERA Files

MORO National Liberation Front chairman Nur Misuari will question the legality of the recent oil exploration and drilling in the Sulu Sea, saying such activities should be coursed through the Autonomous Region in Muslim Mindanao and not through the national government.

Misuari issued the statement during his visit to Ipil, Zamboanga Sibugay last weekend to grace the Fifth Grand Summit of the MNLF and the Bangsa Moro Army. More than 20,000 of its members from all over Mindanao attended.

Misuari, who is running for governor of Sulu province next year, said the national government cannot grant permits for oil explorations and drilling in the Sulu Sea without consulting ARMM leaders.

“That cannot be done, unless the government forgot about the peace agreement,” said Misuari, a former ARMM governor. “Definitely I will question the legality of the exploration there, without us the autonomous region handling the negotiations and drawing up some plans that will benefit our people.”

Misuari said he would raise the issue at the resumption of the peace talks with the government this month.

He recalled that the people of Mindanao never benefitted from the sale of natural gas in Palawan when then President Fidel Ramos negotiated the sale of 2.5 trillion cubic meters of gas for only P4.5 billion.

“Palawan is an integral part of Mindanao,” Misuari said. “This belongs to us, this belongs to our people.”

He said that the oil drilling in the Sulu Sea is expected to yield as much as 800 million barrels of oil.

The MNLF was once a potent rebel organization that fought for Mindanao ’s secession for almost two decades.

In 1996, Misuari forged a peace pact with Ramos, which resulted in the laying down of MNLF arms and Misuari’s rise as governor of the then newly created ARMM.
The ARMM today is composed of the provinces of Maguindanao, Lanao del Sur, Marawi, Basilan, Sulu and Tawi-tawi.

Misuari also said the issue of mining for “strategic minerals” in Mindanao was part of the MNLF’s peace treaty with the government of the Philippines.

ExxonMobil, the largest publicly listed oil company in the world, has been exploring for oil in the Sulu Sea. Sources say the oil deposits there could supply the country’s fuel requirements for seven years.

The Sulu Sea is also rich in marine resources and connects the South China Sea and Celebes Sea, which serve as routes for tuna and other varieties of fish going in and out of the Pacific Ocean.

http://www.verafiles.org/index.php/focus/438-misuari-to-question-sulu-sea-oil-exploration-and-drilling-



Comments from Moro Islamic Liberation Front :

http://www.luwaran.com/index.php?option=com_content&view=article&id=633:sulu-sea-oil-exploration-to-start-this-year&catid=81:moro-news&Itemid=372

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Blackwater In R.P.? by Erick San Juan
Wednesday, July 01, 2009 08:41:47 AM



In spite of the fact that the Blackwater was branded as "persona non grata" in Iraq, some of its contractor and personnels will remain in Iraq until September 2009.

It's Filipino recruits according to fresh report were commissioned to secure the oil and gas reserves in Malampaya and soon at the Exxon's oil exploration in the Sulu seas.

This week,with the U.S. troops turnover of the urban security to their Iraqi counterparts and with the Iraqi police, the militia and the remnants of the Blackwater will be redeployed in Afghanistan and partly, some of its Filipino manpower to be on duty in the "Philippine seas" to protect and secure the Malampaya oil and gas reserves.

Though, we're not so sure if the Philippine government has an OK about the said redeployment especially now that our territorial water boundaries has been modified as per agreement with the UNCLOS (United Nations Convention on the Law of the Seas).

If this is confirmed, the Filipino families of these security personnels should be thankful to Romy Redelicia and his associates in giving our so called "soldiers of fortune" a new lifeline to earn a living. The government agencies concerned should make the necessary and proper arrangements with our armed forces and also with the country claimants in the Spratleys to ensure that no mistaken identity nor misencounter could happen which could provoke a shooting war among stakeholders in the area. Redelicia's operation used to have a license to operate but under a new management of Xe, it's still unknown.

Blackwater is a private military company founded in 1997 by Erik Prince and Al Clark. In October, 2007, the company was renamed Blackwater Worldwide with several contractors under its umbrella. Due to several controversies, reported human rights violations in Iraq and compounding damage suits, even coming from its recruits, the company last February 13, 2009 changed its name into Xe Worldwide.

Its original headquarter is still the same, which is strategically located at Moyock, North Carolina, USA. J. Cofer Black, the US government's top counter terror expert and a former director of CIA's Counter Terrorist Center who used to visit the Philippines is one of the top honcho of Blackwater. Black in 2002 to 2004 has a rank of an ambassador-at-large. The state of the art private training facility is located at Erik Prince 6,000 acres of the Great Dismal Swamp on the North Carolina/Virginia border. Erik Prince, its founder and Gary Jackson, its president are both former US Navy Seal.

To cover the bad reputation and put gradual closure to several indictments, the Blackwater changes not only its name to Xe Worldwide but also its top officials. Joseph Yorio was named as its new president replacing Gary Jackson while Danielle Esposito was named the new chief operating officer and executive vice president.

Xe Worldwide is the largest of the US Department of State's private security contractors. Xe's security and maritime units are reportedly deployed at the Malampaya. Greystone, Ltd., a private security service which is registered in Barbados has the authority to employ third world country nationals for offshore security work through its affiliate, Satelles Solutions, Inc. Both are Xe's conduit and sub contractors allegedly authorized to recruit Filipinos. Greystone was rumored to operate at SBMA and at Clark, according to the Wikipedia. (culdesac0002@yahoo.com.ph)

http://www.mindanaoexaminer.com/news.php?news_id=20090630204147

nakikinikinita ko na ang bukangliwayway...sa pinas......biruin sana tayo ng tadhana na makakita ng bilyong barrels ng oil....sigurado yun liparan dito ang mga swapang na mga investors....parang mga langaw kung san kikita dun dadapo...:lol:

^^ onga.. wish ko lang ung mga kumpanyang mag iinvest sa resources ng Pilipinas ay mayroong magandang record ng Social Welfare Development... Inde yung pera lang ang habol satin.. Give and take sana.. inde yung take lang sila ng take..


kung nagkataon ibigay sa Palawan province yung share nila.. Filipinos might as well move to Palawan.. magiging napakayaman ng probinsyang un. :D

OT:

Iboto si TheAvenger bilang Presidente at ako ang unang magrarally sa unang araw ng pag-upo niya sa Palasyo. Nyahaha :lol:


================

Thanks kay PGMA sa paghikayat sa mga investors! I love it if she will be our President forever.

OT:

Iboto si TheAvenger bilang Presidente at ako ang unang magrarally sa unang araw ng pag-upo niya sa Palasyo. Nyahaha :lol:


================

Thanks kay PGMA sa paghikayat sa mga investors! I love it if she will be our President forever.

yan din ang wish ng apo ni pgma.....i wish my lola will be president forever...:lol:

yan din ang wish ng apo ni pgma.....i wish my lola will be president forever...:lol:

wish ko rin yan:D toink
na maging apo nya:D

OT:

Iboto si TheAvenger bilang Presidente at ako ang unang magrarally sa unang araw ng pag-upo niya sa Palasyo. Nyahaha :lol:


================

Thanks kay PGMA sa paghikayat sa mga investors! I love it if she will be our President forever.

Bakit ako naman ang napag tripan mo.

RP eyes more foreign mining investments (http://www.mb.com.ph/articles/236535/rp-eyes-more-foreign-mining-investments)
January 1, 2010, 7:30pm
Manila Bulletin (http://www.mb.com.ph/articles/236535/rp-eyes-more-foreign-mining-investments)


The government would step up its campaign in attracting more companies interested in mineral development and exploration projects in the country.

Attracting more investments in the mining sector would ensure a sustained export earnings with the current growing demand for mineral commodities abroad. Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation, Inc., earlier identified the mining sector among the growth drivers of the country’s export industry which was projected to grow by 10 percent in 2010. Other sectors seen to fuel next year’s exports growth include electronics and semiconductors, business process outsourcing, jewelry, tourism and gaming-related activities, and agriculture and services.

To attain the projected mineral exports revenues and foreign investment inflows to the sector, industry stakeholders are focusing on the development of the top five mineral commodities which are gold, silver, copper, nickel and chrome.

This was among the strategies introduced in the Philippine Export Development Plan for 2008 to 2010 to achieve target export sales during the period.

“China, as well as other markets, is on its way to recovery. With that, commodities should be getting very good demand already. Copper, for instance, would be there. Gold demand is in an all-time high,” BETP said.

This was confirmed by National Statistics Office (NSO) data indicating that the 0.7-percent growth of total merchandise exports in October 2009 was supported by growth in agro-based and mineral products.

Mineral products registered a whopping 103.7 percent growth in October, a reversal from previous month’s decline, due mainly to increase in copper metal exports of 363.1 percent. (EHL)

Group plans $1.2-billion gas pipeline in RP (http://www.philstar.com/Article.aspx?articleId=549058&publicationSubCategoryId=66)
By Paolo Romero (The Philippine Star) Updated February 13, 2010 12:00 AM

http://pnoc.cre8tivetech.com/images/uploads/sc38img.jpg
Malampaya Natural Gas

MANILA, Philippines - A consortium composed of a locally-listed firm, an Italian oil and gas contractor, and an Abu Dhabi-based holding company is planning to put up a 100-kilometer natural gas pipeline from Batangas to Manila, an investment that is estimated at $1.2 billion, Malacañang announced yesterday.

Officials from the Sultan International Holdings (SIH) of Abu Dhabi, Saipem ENI of Italy, Abacus Holdings Consolidated Resources and Holdings, and the state-run Philippine National Oil Co. (PNOC) called on President Arroyo yesterday in what Palace officials described was “a move seen to set the stage for the immediate implementation of the project.”

The group was accompanied by Energy Secretary Angelo Reyes, Batangas Rep. Hermilando Mandanas, and PNOC senior vice president Glenda Martinez, a Palace statement said.

The delegation included investment banker Eric Zacks, SIH executive Nicholas Clemens; Abacus president Leonardo Gayao, and Arturo Magtibay and Inky Lukban of the same company; and Saipem ENI officials Favio Russo, Claudio Piccinin, and Marco Dugnani.

Publicly-listed Abacus has submitted its unsolicited proposal to construct the Batangas-Manila (Batman 1) natural gas pipeline for evaluation and competitive challenge by the PNOC-Exploration Corp., including the liquefied natural gas (LNG) terminal. The natural gas is sourced from the Malampaya oil and gas field off the coast of Palawan.


“The proponents also said they planned to build a 600-megawatt power plant to be run from the excess capacity of the Malampaya deep water gas-to-power project. It (consortium) pointed out that the gas supply would justify the setting up of an anchor load or power plant, which in turn, would make feasible the construction of the pipeline,” the Palace said.

“The pipeline project will not push through without the gas supply LNG terminal and power plant,” it said.

Saipem was described as “a world leader in oil and gas contracting service and one of the best balanced turnkey contractors in the oil and gas industry.”

SIH is primarily an investment company with significant global investment interests in the energy, construction and logistics sectors.

:cheers::cheers::cheers:

^^ more... VV

Government eyes $1.2-B Batangas-Manila pipeline (http://www.gmanews.tv/story/183822/government-eyes-12-b-batangas-manila-pipeline)
02/13/2010 | 12:13 PM

The government is set to bid out a $1.2-billion natural gas pipeline from Batangas to Manila (nicknamed "Batman 1") in March as part of a long-term power project that is expected to bring down the cost of natural gas in the country.

The Office of the Press Secretary said that the project is part of the Arroyo administration’s long-term Integrated Natural Gas Infrastructure Project, which will connect the 100-kilometer Batman 1 pipeline to Malampaya’s existing Palawan-Batangas gas pipeline to Manila.

The project, a joint venture between the Philippine National Oil Co. (PNOC), the Abu Dhabi-based conglomerate Sultan International Holdings (SIH) and its local representative Abacus Consolidated Resources and Holdings, and Italy-based SAIPEM Eni, is expected to bring down the cost of natural gas used by the country's households and transport sector.

Establishing legalities and investment terms

Batangas 2nd district Rep. Hermilando Mandanas, following a courtesy call to the President together with representatives of the pipeline project's proponents, expressed hope that the bidding would proceed before the middle of March this year "so we can comply with all the legal requirements."

Meanwhile, SIH senior representative Nicholas Clemens said that his company considers the Philippines a good destination for investment from international sources. "We will go through the terms of this transaction in great detail. As soon as we finish the negotiations, we will, establish the terms of the investment," he said.

Other comapnies have alreday signified interest in the project, including PTT Public Co. Ltd. of Thailand, Marubeni Corp. of Japan, Gazprom of Russia, and Petrochina Co. Ltd. of China.

Natural gas terminal and power plant

Aside from constructing Batman 1, the PNOC joint venture entails the establishment of a liquefied natural gas (LNG) reception terminal and a 600-800 megawatt (MW) power plant, which will draw from the estimated 300MW excess capacity of the Malampaya deep water gas-to-power project.

The Malampaya consortium, which is 10 percent owned by PNOC and 90 percent owned by Shell Phils. Exploration BV and Chevron Texaco, provides natural gas to three power facilities with a combined capacity of 2,700 MW. These power plants, in turn, provide power to distributor/retailers such as Manila Electric Co.

Aside from Batman1, the 140-km Bataan-Manila (Batman 2) pipeline, is now already being eyed for development.

Emergency power amidst El Niño

As discussions on the project unfolded, Deputy Presidential Spokesman Gary Olivar said that Malacanang is concerned about the effects of the ongoing El Niño phenomenon on the power output of the country's hydroelectric plants. Olivar acknowledged that businesses may be affected, but was also quick to assure that contingency measures are already in place.

"If the problem gets to be serious that [emergency power] is one alternative that is open to [President Arroyo]. Hopefully hindi aabot sa ganoon. I don't think we're there yet at inaasahan natin na hindi tayo aabot sa ganoong sitwasyon (We're hoping that we don't reach that point)," he said.

Olivar assured that the government is closely watching the country's power situation.

"We will make the necessary adjustments. The important thing is the situation is being monitored and amply addressed," he said.

Commitments sought

Olivar said that the power sector industry in Luzon has already given its commitment to see to it that there will be no prolonged power interruptions, with similar commitments being sought from the Visayas- and Mindanao-based members of the power sector industry.

Magsaysay tanker operator seeks tax incentives from BoI (http://www.bworld.com.ph/main/content.php?id=6836)

MAGSAYSAY-LED Sumilon Island Tankers, Inc. is seeking tax perks from the Board of Investments (BoI) for the operation of an oil tanker, a government notice published yesterday stated.

The firm -- a unit of Magsaysay Transport and Logistics Corp. -- wants incentives for running a “5,550-ton oil product tanker,” the BoI said in the notice.

No investment amount was specified. A second-hand tanker with a similar carrying capacity had cost San Miguel Corp.’s shipping subsidiary P733.54 million according to earlier reports.

Company officials could not be immediately reached for comment.

If the BoI approves Sumilon Island Tankers’ application, the firm could enjoy a six-year income tax holiday, among other incentives.

The state agency had approved other applications for tanker operations in the past, reasoning that government support was needed to encourage more players in the capital-intensive shipping industry. Transport activities such as these are among the preferred investments listed in the 2009 Investment Priorities Plan.

Sumilon Island Tankers is upgrading its fleet according to earlier reports after the International Maritime Organization required vessels carrying black petroleum products to be double-hulled starting April 2008.

Its parent firm, Magsaysay Transport and Logistics, also engages in domestic liner shipping, marine bunkering, fast ferry and tour operations and repairs.

Preferred projects under last year’s IPP also included projects with revenues derived from the sale of carbon credits, in line with the Kyoto Protocol; biotechnology ventures such as those for genetically modified crops; ship salvaging and towing operations; chains of homestay accommodations for tourists; film, television and theater productions and non-offshoring creative services that use information technology such as game development; and manufacture of energy-efficient lighting. -- J. A. D. Hermosa

Benguet junks arbitration, brings dispute with owner of Kingking mine to court (http://www.bworld.com.ph/main/content.php?id=6838)

ROMUALDEZ-LED Benguet Corp. wants the court to stop Nationwide Development Corp. (Nadecor) from cancelling an agreement for the former to operate the Kingking Copper-Gold Project in Compostela Valley Province, saying the matter cannot be settled in arbitration proceedings.

“The cancellation of the operating agreement ... is a judicial question that should be brought to the regular court, instead of an arbitration case,” Benguet said.

Raymond H. Ricafort, Nadecor’s financial consultant, said in a phone interview yesterday the arbitration request Nadecor filed earlier this month was in line with the agreement that both companies had signed.

“The arbitration is faster and is more efficient. I do not understand why they are filing for an injunction in the court,” he said.

Mr. Ricafort said Nadecor would push for the arbitration case. “[The request for injunction] is creating a delaying scenario which is not good for the mining industry,” he said.

Nadecor wants arbitration to facilitate the termination of its three-decade-old operating agreement with the Romualdez firm, which the former claims has been unable to fulfill its obligations.

The Environment department ruled last month that Benguet had lost the right to complete the exploration of the gold and copper property in Southern Mindanao.

The government had tasked Nadecor, owner of the Kingking gold and copper project, to explore the area for two years given the lack of project development in the past 12 years.

Kingking, located in Pantukan town, Compostela Valley, has reserves of about 353 million metric tons (MT) of ore containing 0.385% copper grade and 0.439 grams of gold per MT. It is one of the priority mining projects of the government, which is aiming to raise $11 billion in mining investments by 2013.

Nadecor plans to invest $43.5 million to complete an exploration and feasibility study and another $1.3 billion to start commercial operations.

In December, Nadecor signed a new operating deal with Washington-based Rusell Mining and Minerals, Inc. for the Kingking mine.

Benguet at the same time announced that Chinese mining outfit Minmetals International (HK), Ltd. had agreed to provide financing for the Kingking project.

The listed miner is in talks with creditor-banks over how to settle P1.2 billion in debts. Trading of Benguet shares were suspended late last year for the firm’s failure to disclose the receipt of default notices from creditors.

Shares in Benguet dipped by 2% to P12.25 apiece yesterday. -- Kristine Jane R. Liu

Philex subsidiary hikes stake in Forum Energy (http://www.bworld.com.ph/main/content.php?id=6834)

A UNIT of listed Philex Mining Corp. has acquired an additional stake in an oil and gas company which was recently given government clearance to drill for natural gas in western Palawan.

In a disclosure to the stock exchange, Philex Mining reported that Philex Petroleum Corp., a wholly owned subsidiary, has purchased an additional 2.4% interest in Forum Energy Plc.

The transaction brought Philex Group’s total interest in Forum Energy at 65%. Philex Petroleum now holds 39% in Forum Energy, while affiliate FEC Resources, Inc. holds 26%. FEC Resources is a 51%-owned Canadian subsidiary of the Philex group.

Forum Energy’s geophysical service exploration contract (GSEC) was recently converted by the Department of Energy into a full service contract, allowing the company to drill for commercial purposes.

The exploration block, where Forum Energy holds a 70% interest, is located offshore west of Palawan in the South China Sea. Monte Oro Resources and Energy, Inc. holds the balance.

The area covers the Sampaguita oil and gas discovery in the Reed Bank Basin.

The block lies just 250 kilometers southwest of the Malampaya field, the largest natural gas field in the country which powers three generation plants.

Forum Energy has yet to announce its work program for the area. The company received GSEC 101 in 2002, and this expired four years after in 2006.

Seismic mapping done by Forum Energy confirmed minimum gas reserves of up to 3.4 trillion cubic feet and a potential of up to 20 trillion cubic feet. In comparison, the Malampaya field, also off Palawan, has proven reserves of about 2.6 trillion cubic feet.

Philex Petroleum also owns 5.3% of Pitkin Petroleum Ltd., an international upstream oil and gas company with operations in Vietnam, the Philippines, Peru and the United States.

Philex Mining shares yesterday closed 1.8% lower at P13.50 apiece.

Sagittarius taps Bechtel for Tampakan study (http://http://www.philstar.com/Article.aspx?articleId=481943&publicationSubCategoryId=66)
By Marianne V. Go Updated June 29, 2009 12:00 AM


MANILA, Philippines - Sagittarius Mines Inc. (SMI) has engaged the services of Bechtel, a global leader in engineering and construction, to conduct a $74-million feasibility study for its Tampakan copper-gold project in Southern Mindanao.

The $74-million feasibility study, which will entail a detailed engineering study, will help determine whether the project will advance to development stage.

The feasibility study is expected to be completed and submitted to the Philippine government by the second quarter of 2010.

The feasibility study is being undertaken even as SMI’s major shareholder, Xstrata engages in possible merger talks with another major mining firm, Anglo American.

According to SMI president Peter Forrestal, “this phase we are embarking on is very significant for SMI and for the future of the Tampakan project.”

He said that the decision to develop a major copper mine at Tampakan will depend on the outcome of the feasibility study which will examine the economic, social and environmental viability of the project.

Forrestal assured that “through all its development stages, the Tampakan project will continue to be run in line with leading environmental and social practices, based on partnership with its stakeholders, to create mutual benefits for shareholders, the communities associated with the project and the Philippines.”

Partners in the Tampakan project include Xstrata Copper (62.5 percent), Indophil Resources NL (34.23 percent) and Alsons Corp. (3.27 percent).

In a related development, Mines and Geosciences Bureau director Horacio Ramos noted that a possible merger between Swiss mining firm Xstrata and British Anglo American will enhance Philippine mining projects in which the two foreign firms have investments in.

Xstrata is a major shareholder in SMI which is developing the potentially rich Tampakan mine.

Anglo American, on the other hand, continues to explore in Surigao.

The two global mining giants had recently announced that they are in possible merger talks.

Xstrata had made the proposal to the board of Anglo American regarding a possible merger.

London-based Anglo American confirmed the talks but hastened to qualify that the talks are very preliminary.

A merger between Xstrata and Anglo American could make the resulting company a world leader in base metals (second in copper, first in zinc and fourth in nickel), the world’s largest producer of platinum, thermal export coal and ferrochrome, and a top-five producer of iron ore and coking coal.

With the global economic slump also adversely affecting the mining sector, mining firms are opting for mergers and consolidation to cut costs.

Reasons why Davao Gulf is poisoned with mercury I heard. Some of the indigenous people's houses were burned down because of opposition to this mining company.

I can't elaborate more on this as people have died talking about the Tampakan project. Not even WWF Philippines did anything about it even if it was brought to their attention because one of their officers is a major stockholder on one of the partner mining companies. Really sad.

There are some victories though, BHP Billiton backed out of mining the protected Mt. Hamaguitan (home of the second largest bonsai forest in the world and the endangered Philippine eagle). BHP planned to use hard concentrated acid to extract gold in the said mountain.

Two Canadian firms target setting up mining operations

BusinessWorld | 03/01/2010 11:09 AM

MANILA, Philippines - Two Canadian mining companies are keen on setting their feet in the Philippine shore, one of which has already acquired three mining concessions.

Coronado Resources Ltd. and Crazy Horse Resources, Inc. separately told the Toronto Stock Exchange earlier this month that they have already made progresses in their plans to take part in the exploration of the country’s mineral resources.

“Coronado Resources is progressing on the due diligence to acquire several gold mining concessions located in the prolific Masbate gold region in the Philippines,” Coronado said in a statement.

Coronado said it has already acquired three mining concessions since first disclosing its plan a month ago. The concessions are located in Panique, Rudy and Capsay in the Masbate province in the Bicol region.

Coronado said it is also pursuing an additional mining concession totaling 300 hectares (ha.) in the same region and will continue to look for known mining areas it can explore. “[The company] is currently evaluating two gold properties near Baguio City totaling 10,530 ha.

that have recently been made available,” Coronado said.

Coronado Resources is currently focused on its wholly owned Madison Gold and Copper property in Montana, USA. It has a market capitalization of $4.34 million.

Meanwhile, Crazy Horse Resources said it has written a letter of intent with Asian Arc Minerals Corp. to buy the latter’s entire stake in two mining exploration permit applications covering the Kayapa Copper-Gold Porphyry Project in Nueva Viscaya province.

The Kayapa Project is under two mining exploration permit applications covering a combined total area of 8,545.5 ha.

Crazy Horse said the areas host a large and only partly explored copper-gold porphyry deposit similar to other copper-gold porphyry deposits previously mined in the country.

“An economically significant aspect of the explored portion of the project is the potential to quickly define a viable copper oxide deposit,” Crazy Horse said.

The partly explored deposits, the foreign miner said, was done by Hong Kong-backed Philex Mining Corp. between 1966 and 1979.

Crazy Horse said it has already raised $475,000 through private placement to finance the project. “The proceeds of the private placement will be used to provide working capital to complete due diligence. The proceeds will not be sufficient and the company expects to raise additional financing,” Crazy Horse said.

Crazy Horse Resources is a mineral exploration company that owns interest in the Iron River Property located on Vancouver Island. It has a market capitalization of $7 million.

Unprocessed ore exports barred in 2016 (http://businessmirror.com.ph/index.php?option=com_content&view=article&id=22411:unprocessed-ore-exports-barred-in-2016&catid=23:topnews&Itemid=58)

THE government has finally decided the country would be better off exporting processed ore because the value added will earn the treasury and the local industry more, now that the Department of Environment and Natural Resources would approve only exports of semiprocessed or processed metallic minerals starting 2016.

Horacio Ramos, acting environment secretary, said the government is “giving [mining companies] up to five years to improve their operations. After five years, direct ore shipments will no longer be allowed. The minerals should have undergone semiprocessing, if not fully processed.”

The proposed measure will be incorporated in a memorandum order which the Mines and Geosciences Bureau is polishing for approval in a meeting tomorrow.

Even as the picture of added earnings because of value added is painted by the government, a number of mining firms have expressed concern about the possibly stiff price tag for necessary additional investments for processing. What the government’s answer to this, Ramos did not spell out, but he did say, “they understood that the measure is intended to enhance mining as a business and improve [their] margins in the long run.”

Ramos said the government is also looking at cutting red tape, strictly enforcing government regulations on safety and health, and standardization of ore resources and reserves for a uniform description of minerals.

Last year the DENR began streamlining the awarding of environmental and mining permits, reducing processing to seven weeks from 17, that of certificates of noncompliance to two days from 3 months, and environmental compliance certificates, to three weeks from three months.

The DENR is also looking at harnessing the power of the Internet to create a system for the monitoring of the issuance of permits down to the regional level.

ExxonMobil to spend $100-M for Sulu Sea drilling

abs-cbnNEWS.com | 03/03/2010 3:11 PM

MANILA, Philippines - The local unit of global giant Exxon Mobil Corp. is expected to spend another $100 million for the drilling of its third well under a service contract in the South Sulu Sea.

Official sources said the drilling operations of Exxon Mobil Exploration and Production Philippines B.V. (ExxonMobil) will be done in the next 6 months. So far, ExxonMobil had spent $200 million for the drilling of the first 2 wells in the area.

ExxonMobil is part of a consortium that was granted drilling rights at the South Sulu Sea area by the Energy Department.

Operating under Service Contract 56 (SC-56), ExxonMobil has completed its second well, called Banduria-1, which was drilled to a total depth of 4,370 meters or 13,534 feet. Drilling the Banduria-1 well began on January 5, 2010.

With the completion of drilling Banduria-1, ExxonMobil has fulfilled its 4th Exploration Sub-Phase commitment of SC-56. Drilling operations under SC-56 started on October 11, 2009.

The DOE said that the first well, Dabakan-1, encountered gas.

Earlier, the DOE said SC-56 contains about 750 million oil barrels, which can supply the domestic market for 7 years.

"The two exploration wells have given us very useful data, which will now be analyzed by ExxonMobil. Additional studies are being conducted to evaluate the potential of the two wells and further appraisal plans," said Energy Secretary Angelo Reyes.

Aside from ExxonMobil, which owns 50% of SC-56, other members of the consortium are Mitra Energy (Philippines SC-56) Ltd. and BHP Billiton (International Exploration Pty Ltd). The 2 firms hold 25% stake each in the exploration project.

Another consortium member, the West Aquarius drilling rig, had to bow out to fulfill drilling commitments elsewhere.

SC-56 is part of the Philippine government's efforts to encourage investments in the energy sector.

as of 03/03/2010 3:11 PM

ExxonMobil unit allots $100 million more for South Sulu Sea project (http://www.philstar.com/Article.aspx?articleId=554358&publicationSubCategoryId=66)
By Donnabelle L. Gatdula (The Philippine Star) Updated March 03, 2010 12:00 AM

MANILA, Philippines - ExxonMobil Exploration and Production Philippines B.V., an affiliate of the US-based oil and gas multinational, expects to spend another $100 million for the drilling of a third well at its Service Contract 56 in the South Sulu Sea.

The company said the drilling of the third well will be made over the next six months.

This developed as the Department of Energy (DOE) announced that ExxonMobil has completed drilling its second well in SC 56. The Banduria-1 well was drilled to a total depth of 4,370 meters.

With the completion of the Banduria-1 drilling, ExxonMobil has completed fourth exploration sub-phase commitment in SC-56 with the DOE. Drilling operations in the contract area started on Oct. 11, 2009.

The DOE said the first well, Dabakan-1, encountered gas.

“The two exploration wells have given us very useful data, which will now be analyzed by ExxonMobil. Additional studies are being conducted to evaluate the potential of the two wells and further appraisal plans, Energy Secretary Angelo T. Reyes said.”

ExxonMobil is the lead operator and owns 50 percent of SC 56, which also includes Mitra Energy (Philippines SC-56) Ltd. and BHP Billiton (International Exploration Pty Ltd.), each holding a 25-percent stake in the exploration project. 

SC 56 is part of the Philippine government’s efforts to encourage investments in the energy sector.

During this exploration period, all risk is borne by the contractors ExxonMobil, Mitra and BHP Billiton, at no cost to the Philippine government. 

The consortium has so far, spent $200 million for the drilling of the two wells in the area.

The DOE earlier said SC 56  contains about 750 million barrels of oil which can supply the domestic market for about seven years.

Philex produces 7,471 ounces of gold for February (http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=262782)

MANILA, March 7 (PNA) - Philex Mining Corporation, in a disclosure to the Philippine Stock Exchange, announced that its Padcal Mine has produced 7,471 ounces of gold for the month of February worth P384 million.

Philex said it has also produced 8,015 ounces of silver placed at P6 million and 644,939 pounds of copper (P382 million) from the said mine during the same period.

Overall, Philex's precious metal ore production amounted to P772 million for the month of February. (PNA)

Phoenix Petroleum sales revenue jumps 27% to P5.8B (http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=263276)

MANILA, March 9 (PNA)—Publicly listed Phoenix Petroleum Philippines, Inc. (PPPI) said its sales revenue climbed to P5.88 billion in 2009, up 27 percent from P4.62 billion in 2008.

Dennis Uy, Phoenix Petroleum’s president and chief executive officer, said the growth of retail network, commercial accounts and lubricant business had raised the company's sales revenues.

“The growth in our sales and market share is a result of aggressive marketing and franchising, as well as enhanced operations supporting our retail network,” Uy said.

PPPI's market share, based on volume of sales, rose to about 1.2 percent from 0.67 percent in 2008.

In Mindanao, Phoenix Petroleum cornered 13 percent of the market in terms of retail stations, making it the fourth biggest oil company and largest independent oil firm in the south, Uy said.

From 86 stations in 2008, Phoenix Petroleum grew to 120 operational stations across the country, where 97 stations are located in Mindanao, one in Visayas, and 22 in Luzon.

In July last year, it inaugurated its 50-million-liter terminal at the Phoenix Petroterminal and Industrial Park in Calaca, Batangas to serve as its hub in Luzon.

Government pension fund Social Security System in acquired 2.83 percent of the capital outstanding stock of PPPI last November for P42 million.

Phoenix Petroleum is engaged in the business of trading refined petroleum products, lubricants and other chemical products, operation of oil depots and storage facilities, and allied services.

The company also rolled out its “Raise a Phoenix” ad campaign featuring world boxing champion Manny Pacquiao.

Pacquiao himself is a Phoenix Petroleum dealer and his station in General Santos City is the company’s 100th.

Other marketing campaigns feature popular actress Marian Rivera as the Phoenix Maiden.

In 2007, PPPI became the first independent oil company to list on the Philippine Stock Exchange after the passage of the Oil Deregulation Law in 1998. (PNA)

Aussie firm to develop Palawan oilfield (http://www.mb.com.ph/articles/246827/aussie-firm-develop-palawan-oilfield)

SINGAPORE, March 8 (Reuters) – Kairiki Energy, an Australian firm drilling for oil in Southeast Asia, expects to announce partners for development of the Gindara field in offshore Palawan before end-2010, seeking to expand fledgling production and strengthen its foothold in the Philippines, executives said on Monday.

Kairiki foresees reserves of more than 200 million barrels of oil will be recoverable from Gindara, out of a mean estimate of 634 million barrels of oil in place. That is more than triple the total of 201 million in place for the rest of Kairiki's prospects.

''Gindara is a game changer for us,'' Kairiki managing director Mark Fenton told Reuters.

Kairiki and Gindara majority-owner Nido Petroleum Ltd, also from Australia, plan to woo larger partners by offering them a stake in the oilfield in exchange for financing the first well, Fenton said.

The drilling cost will amount to between $20 million and $30 million, he added.

Oil firms are showing more interest in the Philippines after Galoc, an oilfield partly owned by Nido, in 2008 began production of up to 14,000 bpd of light sour Palawan crude, similar to Abu Dhabi grades.

Galoc was the first major field to come on stream in the archipelago nation since the 1990s.
Crude production in East Asia remains low at around 8 million bpd, versus demand near 25 million bpd.

Kairiki owns 40 percent of Gindara, located north of Palawan island at a water depth of more than 300 metres (984 ft), while Nido owns the rest. Production from the field could take between two and three years to commence after the first well is drilled by mid-2011, executive director Laurie Brown said.

''It is a high-risk, high-impact project where we need the participation of bigger oil companies,'' Brown added in the interview.

This year Kairiki expects to produce oil for the first time, pumping as much as 15,000 barrels per day (bpd) from the shallow-water Tindalo field also in the Philippines, starting from early in the second quarter, or ''within weeks,'' Fenton said.

Nido owns 50 percent and is the operator of Tindalo, while Kairiki holds a 35 percent stake. The remaining 15 percent is held by European oil trader Trafigura, which will market the oil.

Kairiki expects to recover Tindalo investment costs after about six weeks of production, Fenton said.

I am just wondering, with the current consumption rates, how long these reserves are going to last?

3 local, foreign groups submit bids for Diwalwal mine projects

By Riza T. Olchondra
Philippine Daily Inquirer
First Posted 20:32:00 03/10/2010

MANILA, Philippines--Only one company participated in the rebidding of the Letter V property in the gold-rush Mt. Diwalwal area in Compostela Valley, according to the state-run Philippine Mining Development Corp. (PMDC).

There was more interest in the adjacent Higanteng Bato property, which was bid out earlier, with two companies interested in the project.

PMDC bids and awards committee chair Jaime T. de Veyra said in a phone interview that Blackstone has offered to explore and develop the Letter V property for P20.02 million.

The minimum bid for the 1,296-hectare Letter V property was P20 million. De Veyra said his committee would evaluate Blackstone’s proposal as per bidding rules.

“Before, in the 1980s, having only one bidder meant there was a failure of bidding. But since the 1990s, new rules allow us to evaluate even just one bid,” De Veyra said.

PMDC declared a failure of bidding on the Letter V property in December 2009.

There were two pre-qualified bidders: listed firm Atlas Consolidated Mining and Development Corp. and private company F.F. Cruz and Co. Inc.

However, “not one of the pre-qualified bidders submitted a bid,” De Veyra said.

He said the prospective bidders who failed to submit proposals did not disclose why they did so. He declined to speculate on why some bidders backed out.

Meanwhile, two companies submitted bids for the Higanteng Bato parcel during Monday’s auction, PMDC said in a notice posted on its website.

Higanteng Bato is a 1,359-hectare mineral property located within the 8,100-hectare Diwalwal mineral reservation.

PMDC said two bidders participated and submitted their respective bids—Carrascal Nickel Corp. and China Non-Ferrous Metals Mining (Phils.) Group Co. Ltd.

A third pre-qualified bidder, F.F. Cruz, did not submit its bid, PMDC said.

PMDC added that its bid and awards committee would publish and inform the winning bidder after conducting its post-bid evaluation.

At stake in the two Diwalwal projects are joint operating agreements for the exploration, development and mining operations of the area.

The winning bidders will initially be given two years to explore the property.

The winning bidders will work as partners of PMDC, the Department of Environment and Natural Resources’ corporate arm.

PMDC is tasked to monitor and oversee the effective development of the government’s mineral resources.

As a partner in the Mt. Diwalwal projects, PMDC will get royalties on the production of gold, copper and other minerals.

From what I know, the problem is that the crude is too expensive to process due to sulfur levels, etc., unlike the "juice" found in Saudi Arabia oilfields but are now being depleted.

In any event, we'll need something like four Saudi Arabias if we assume that resource demand for the rest of the world will outstrip declines in the U.S. and in Europe due to the current economic crisis.

Unfortunately, discoveries peaked in '64, which means we might not be able to meet such a demand, even given estimates of recoverable resources.

Malampaya: Why sell goose laying golden eggs? (http://www.philstar.com/Article.aspx?articleId=558582&publicationSubCategoryId=66)
DEMAND AND SUPPLY By Boo Chanco (The Philippine Star) Updated March 17, 2010 12:00 AM

I realize this is an old story. Ate Glue’s administration had long wanted to sell the 10 percent share of PNOC-EC in the Malampaya consortium since Vince Perez was Energy Secretary. I have written several columns over the years saying this is not a good idea. But alas, the last two minutes are upon Ate Glue and they have revived the idea with a lot more determination.

The Finance Secretary is saying he has to sell the Malampaya shares because he needs the money to plug a fiscal deficit gone wild. But Gary Teves is looking at the issue with heavy blinders. His reason for selling our Malampaya shares is simply not good enough. Besides, the proceeds will hardly produce a dent in the deficit number even as the sale will make government less effective in regulating the energy sector in the future.

PNOC-EC has those shares in Malampaya because Rufino Bomasang, a professional manager and technocrat who headed the company in the years before Ate Glue’s political cronies came upon it, thought he needed those shares to effectively monitor what the foreign consortium members are generating by way of technical and financial data. In fact, PNOC-EC bought those shares and did not get those on carried basis or for free.

Even as service contractors are required to provide technical and financial data to government, the most sensitive bits of information are kept among the consortium members. This is why those PNOC-EC shares are vital in making sure we know what is really going on with the project. Because consortium members have a right of first refusal to the PNOC EC shares, Shell and Chevron will likely buy those shares and shut out government thereafter from the usual flow of sensitive information about the wells.

Over the weekend, an opinion piece by Miriam Coronel Ferrer at the ABS-CBN website provided another good reason to keep those shares: they produce a positive cash flow. In other words, we are making money on those shares. Government should prioritize privatizing assets that are draining resources, and think twice about good assets like those Malampaya shares where state ownership serves a national purpose. As Ms. Ferrer puts it, “the Filipino people and Philippine government will lose forever significant and potentially higher annual revenues from the resource in the next 20 years.”

Here is how she presents her case:

“Gas from Malampaya fuels the 2,700 megawatt power plants in Batangas. So far, Malampaya is the biggest oil and gas producing field in the country. It is estimated to contain 3 trillion cubic feet of gas and 40 million barrels of recoverable oil reserves. However, there are indications that it has much more in store not only in the Malampaya structure, but also in the nearby prospects that Shell and the Service Contract 38 joint venture have identified and will be drilling soon.

“The government plans to sell Malampaya for about US$300 million or P14 billion. In 2008, the PNOC-EC earned P3.08 billion, most of which came from Malampaya earnings. At this rate, and assuming steady gas prices and volume of sales, it can easily raise the $300 million in six years without having to sell the goose that lays the golden egg.

“In fact, the Malampaya consortium has already fully recovered its initial $4.5 billion investment. It started operation only in 2001.

“Obviously, disposing of the asset now will immediately strip the government, starting with the next administration, of a sustained and significant revenue source. Without the Malampaya asset, the PNOC-EC’s net worth would be decimated. It won’t have the capacity to invest in other exploration projects.

“The government plan is to eventually sell 60 percent of the PNOC-EC. But without the Malampaya goose, it won’t fetch much. If it sells PNOC-EC with its Malampaya share intact, it can fetch a much higher value for the same share. So why is the government so keen to sell the shares now?”

As Ms. Ferrer also pointed out, this is the not the first time, the GMA administration tried to sell the participating interest of the PNOC-EC in Malampaya. In 2005, it approved the sale of half of its participating share to a Korean company being advised by Lazard Freres, a New York investment advisory firm where then Energy Secretary Vince Perez once worked. I remember Perez claiming to me that the order to sell came directly from Malacañang.

In fairness to Vince, he wrote me that he thinks he made the bidding transparent and that it had been more than seven years since he left Lazard. I wrote several columns against this sale and luckily for the country, then NEDA chief Romy Neri managed to block the planned sale. But Bomasang the competent career energy official who opposed the sale was fired by Ate Glue on recommendation of Mr. Perez.

With only three months to go before a new administration takes over, it is easy to see this impending sell-out of a prime revenue-generating government asset as one more short-term measure of this administration most probably for some kind of self-serving gain. The deal is obviously unwise from a business investment point of view and seems fraudulent from a governance perspective, Ms. Ferrer observes.

Given the reputation of this administration it is easy for some to “surmise the funds will be diverted to private pockets, or electioneering. Others think the administration wants to exit without the shameful legacy of a huge budget deficit…. Still others cannot help think of even more sinister plots in the offing, such as the eventual privatization of the much devalued PNOC-EC at bargain prices to a favored investment group.”

Or maybe, this is just a case of a very desperate Finance Secretary who is ready to sell the most saleable government asset regardless of other strategic considerations because his exit report card would otherwise report that large deficit. But if he is using his brains the way he used to in his younger days, he would realize that ending his watch even with that deficit number is not as bad as losing a strategic investment in a strategic industry that also more than pays for itself.

Selling a goose laying golden eggs? Sure enough, the main reason is a handsome sales commission.

By MIRIAM CORONEL FERRER
ABS-CBN News; 03/13/2010

Everyone has been focused on the election trail, and while we’re not looking, the government is fast tracking the selling of valuable government assets.

The issues surrounding the selling of the Food Terminals in Taguig and the real estate owned by government in Fujimi, Japan have already come out in the open. But still outside of the public glare is the ongoing negotiation to sell the 10 percent share of the government in the Malampaya oil field.

If Malacanang manages to arm twist the Philippine National Oil Company-Exploration Corporation (PNOC-EC) board to sign the deed of sale – and it seems they are trying their darnedest to pull this through — the billions of fresh funds from the sale will immediately prop up the sagging coffers of this administration. But the Filipino people and Philippine government will lose forever significant and potentially higher annual revenues from the resource in the next 20 years.

Gas from Malampaya fuels the 2,700 megawatt power plant in Batangas. So far, Malampaya is the biggest oil and gas producing field in the country. It is estimated to contain 3 trillion cubic feet of gas and 40 million barrels of recoverable oil reserves. However, there are indications that it has much more in store not only in the Malampaya structure, but also in the nearby prospects that Shell and the Service Contract 38 joint venture have identified and will be drilling soon.

The government plans to sell Malampaya for about US$300 million or P14 billion. In 2008, the PNOC-EC earned P3.08 billion, most of which came from Malampaya earnings. At this rate, and assuming steady gas prices and volume of sales, it can easily raise the $300 million in six years without having to sell the goose that lays the golden egg.

In fact, the Malampaya consortium has already fully recovered its initial $4.5 billion investment. It started operation only in 2001.

Obviously, disposing of the asset now will immediately strip the government, starting with the next administration, of a sustained and significant revenue source.

Without the Malampaya asset, the PNOC-EC’s net worth would be decimated. It won’t have the capacity to invest in other exploration projects.

The government plan is to eventually sell 60 percent of the PNOC-EC. But without the Malampaya goose, it won’t fetch much. If it sells PNOC-EC with its Malampaya share intact, it can fetch a much higher value for the same share. So why is the government so keen to sell the shares now?

This is the not the first time, the GMA administration tried to sell the participating interest of the PNOC-EC in Malampaya. In 2005, it approved the sale of half of Its participating share to the Korean LG company. But several people in government managed to block the planned sale. With only three months to go before a new administration takes over, high-ranking government officials are once more working fast to swing a deal asap.

Speculations as to motives are naturally rife when a government-brokered deal is evidently unwise from a business investment point of view and fraudulent from a governance perspective. Some surmise the funds will be diverted to private pockets, or electioneering. Others think the administration wants to exit without the shameful legacy of a huge budget deficit. That’s why they badly need the green bucks-transfusion. Still others cannot help think of even more sinister plots in the offing, such as the eventual privatization of the much devalued PNOC-EC at bargain prices to a favored investment group.

The president has promised a smooth transition to the next administration. And while we have yet to see through this promise, we have before us very high-ranking government officials hell-bent on using their terminal powers to squeeze the most benefit for themselves.

The president has been filling up all appointive positions with people whom we will have to suffer even after she has stepped down. It seems she will appoint the chief justice of the Supreme Court during the election ban period even at the cost of a constitutional showdown. It is pathetic that an incoming AFP chief’s inaugural speech is a plea for trust, given how little there is on both the appointer and appointee.

And now, we have this impending sell-out of a prime revenue-generating government asset for one more short-term and self-serving gain.

E-mail: mcf178@yahoo.com


http://magdalo.org/2010/03/21/malampaya-sellout-miriam-coronel-ferrer/

The funds from the sale - will immediately prop up the sagging coffers of this administration.


Ayan na, para bang magsasara na ang bangko at kelangan meron kang cash sa bulsa para sa ibang bagay...like: pangbayad sa utang, pang-abono sa nakupit sa kaban ng bayan o pang gastos sa sariling karangyaan. :lol:

Maramng kikita sa deal na ito bago umalis si GMA.... :D

Philippines overhauls mining regulations to entice foreign investors
Singapore 29 March 2010 02:30

The Philippines has fast-tracked mining tenancy processing, acted on non-performing miners, and provided security services to guard mines in an effort to entice more foreign mining investment. “Previously, processing of a mining tenancy took four months. But with the new mining reforms starting in March, mining groups can expect mining tenancy approval within ten weeks,” Horacio Ramos, secretary of the Dept of the Environment and Natural Resources (DENR), said on the sidelines of the Asia Mining Conference in Singapore. The reforms will also enforce stricter compliance by mining firms on the timetable...
http://www.metalbulletin.com/Article/2452415/NonFerrous/Philippines-overhauls-mining-regulations-to-entice-foreign-investors.html

This is better, with processing plants..


NiHAO, China firm tie up for nickel facility

Written by Miguel R. Camus / Reporter
Monday, 29 March 2010 18:46
Business Mirror

A JOINT venture between  locally listed nickel miner NiHAO Mineral Resources International Inc. and an affiliate of China Shenzen International Cooperation Co. is planning to spend up to $30 million over the next three years to build a sintering and smelting facility in Mindanao.

In an informal interview with reporters on Friday, NiHAO president  Jerry  Angping said the venture will initially build a nickel sintering facility, possibly in Surigao province, with a capacity to process 1 million tons annually.

“But our plan within the next three years is to process at least 3 million tons per year,” said Angping at the sidelines of an event sponsored by financial consultancy fim Absolute Traders , last week. The facility is seen to be completed within three to six months, Angping said, at a cost of $10 million.

The company president said NiHAO is still in talks with China Shenzen for the development of an industrial park in the country.

The company, in an earlier filing to the stock exchange, said the project will be a joint venture between NiHAO, China Shenzen and Geograce Resources Philippines Inc., a listed miner also led by Angping.

In the same filing, NiHAO said China Shenzen is a conglomerate with various business interests with Chinese state overseas economic projects. The company is said to have $5 billion in investments in Vietnam.

NiHAO last week acquired a third of privately held mining operator Oriental Vision Mining Philippines Corp.

Oriental Vision is presently operating three nickel projects in Dinagat Island, Surigao del Norte and Isabela provinces covering a total area of about 5,900 hectares.

NiHAO has four mining tenements located in the provinces of Zambales, Misamis Oriental, North Cotabato and Antique as well as three small-scale mining claims in Botolan, Zambales and in Manticao, Misamis Oriental.

DENR cuts down processing time for new exploration permits
To further boost the country’s mining industry, the Department of Environment and Natural Resources (DENR) has cut down the processing time for new exploration permit and mineral agreement for initial exploration activity.

Environment Secretary Horacio Ramos said what used to take mining firms to secure necessary permits have been cut from 15 weeks to just 10 weeks.

Ramos issued DENR Memorandum Order 2010-04, directing the Mines and Geosciences Bureau (MGB) to speed up the granting of mining contracts and permits, cleanse the mining applications while strengthening the compliance requirements of companies at the same time.

He said the move is in line with the thrust of the government to revitalize mining in the Philippines.

 Under the memorandum, application for a new exploration permit or a mineral agreement for an initial exploration activity that have complied with all pertinent requirements shall be approved within 10 weeks from the date of acceptance of the application.

Ramos also ordered that application for the first or second renewal of an exploration permit, as well as application for renewal of exploration period of a mineral agreement, shall be approved within 15 days from the date of payment of the renewal fees.

Ramos said the DENR will disapprove mining applications of companies whose request for free and prior informed consent from the rightful indigenous peoples concerned as certified by the National Commission on Indigenous Peoples (NCIP) are rejected.

Other grounds for the disapproval of application include the applicant’s failure to secure the NCIP Certificate of Non-overlap within one year and NCIP Certification Precondition (Compliance Certificate) within three years from the date of NCIP’s receipt of pertinent letter-request from MGB, and also the failure to secure the proof of consultation with the concerned Sanggunian within two years from the date of acceptance of the mining application.

To ensure that mining companies comply with the requirements, the DENR is also implementing the following reforms: failure to implement the three-year development/utilization work program or the exploration work program for two consecutive years shall be ground for cancellation of the mining contract or permit; mineral agreements with expired exploration period for five years or more will be canceled; comprehensive field inspection by the DENR shall be required prior to the commissioning of a mining project; and a resident mine inspector shall be deployed by the MGB in every major mining project to monitor strict compliance with contractual obligations.http://businessmirror.com.ph/index.php?option=com_content&view=article&id=23613:denr-cuts-down-processing-time-for-new-exploration-permits&catid=33:economy&Itemid=60

From US goverment website

Mining
The Philippines is one of the world's most highly mineralized countries, with untapped mineral wealth estimated at more than $840 billion. Philippine copper, gold, and chromate deposits are among the largest in the world. Other important minerals include nickel, silver, coal, gypsum, and sulfur. The Philippines also has significant deposits of clay, limestone, marble, silica, and phosphate. The discovery of natural gas reserves off Palawan has been brought on-line to generate electricity.

Despite its rich mineral deposits, the Philippine mining industry is just a fraction of what it was in the 1970s and 1980s when the country ranked among the ten leading gold and copper producers worldwide. Low metal prices, high production costs, and lack of investment in infrastructure have contributed to the industry's overall decline. A December 2004 Supreme Court decision upheld the constitutionality of the 1995 Mining Act, thereby allowing up to 100% foreign-owned companies to invest in large-scale exploration, development, and utilization of minerals, oil, and gas.

From US goverment website

Mining
The Philippines is one of the world's most highly mineralized countries, with untapped mineral wealth estimated at more than $840 billion. Philippine copper, gold, and chromate deposits are among the largest in the world. Other important minerals include nickel, silver, coal, gypsum, and sulfur. The Philippines also has significant deposits of clay, limestone, marble, silica, and phosphate. The discovery of natural gas reserves off Palawan has been brought on-line to generate electricity.

Despite its rich mineral deposits, the Philippine mining industry is just a fraction of what it was in the 1970s and 1980s when the country ranked among the ten leading gold and copper producers worldwide. Low metal prices, high production costs, and lack of investment in infrastructure have contributed to the industry's overall decline. A December 2004 Supreme Court decision upheld the constitutionality of the 1995 Mining Act, thereby allowing up to 100% foreign-owned companies to invest in large-scale exploration, development, and utilization of minerals, oil, and gas.


Link please. Thanks.

Link please. Thanks.

http://www.state.gov/outofdate/bgn/p/122461.htm

http://www.state.gov/outofdate/bgn/p/122461.htm

Thanks man. :)

From US goverment website

Mining
The Philippines is one of the world's most highly mineralized countries, with untapped mineral wealth estimated at more than $840 billion. Philippine copper, gold, and chromate deposits are among the largest in the world. Other important minerals include nickel, silver, coal, gypsum, and sulfur. The Philippines also has significant deposits of clay, limestone, marble, silica, and phosphate. The discovery of natural gas reserves off Palawan has been brought on-line to generate electricity.


The untapped wealth of Philippines - US$840B. That's huge. If the minerals are properly extracted, sold/exported, it will have tremendous positive change in our GDP and the wealth of the nation. :cheers:

:banana::banana::banana:

Do you think the phil gov knows this information??????

The Philippines, as a small third country which is indulged in serious economic and political crisis, has still has a chance to prove that it can possibly be one of the richest countries in the world considering its great volumes of precious reserves and mineral deposits particularly, the so-called “Deuterium: The White Gold of the Philippines”.

According to Major Tom/June 17, 2008, (Deuterium: The White Gold of the Philippines, The Economy Science and Technology), “the Philippines is identified to hold the greatest amount of deuterium deposit, somewhere in the area known as Mindanao Trench, the part of the Pacific Ocean just off the shores of Surigao. Deuterium is most prevalent in an area more widely known in the whole world as The Philipppine Deep. In the Freeman news article (dated August 2004), Dr. Anthony B. Halog, the Filipino scientist working at the Sustainable Technology Office of the Institute for Chemical Process and Environmental Technology, and the National Research Council of Canada described the Philippine deuterium wealth in this manner:

“A big deposit of 868 miles long, 52 miles at widest point, and 3 miles at deepest point, replenished by nature 24 hours a day after deuterium travels more than 12,000 kilometers from Central America to the Philippines through the span of the Pacific Ocean when Planet Earth turns on its axis from West to East in unending perpetual motion.”

And it’s potential in this breathe: “At 12 million barrels per day capacity priced at US$7.00 per barrel, this is US$84 million per day or US$30.66 billion per year, enough to wipe out all existing foreign debts of the Government in one year, revenue-wise in foreign exchange.”

from the NEWS FLAVOR

The Philippines, as a small third country which is indulged in serious economic and political crisis, has still has a chance to prove that it can possibly be one of the richest countries in the world considering its great volumes of precious reserves and mineral deposits particularly, the so-called “Deuterium: The White Gold of the Philippines”.

According to Major Tom/June 17, 2008, (Deuterium: The White Gold of the Philippines, The Economy Science and Technology), “the Philippines is identified to hold the greatest amount of deuterium deposit, somewhere in the area known as Mindanao Trench, the part of the Pacific Ocean just off the shores of Surigao. Deuterium is most prevalent in an area more widely known in the whole world as The Philipppine Deep. In the Freeman news article (dated August 2004), Dr. Anthony B. Halog, the Filipino scientist working at the Sustainable Technology Office of the Institute for Chemical Process and Environmental Technology, and the National Research Council of Canada described the Philippine deuterium wealth in this manner:

“A big deposit of 868 miles long, 52 miles at widest point, and 3 miles at deepest point, replenished by nature 24 hours a day after deuterium travels more than 12,000 kilometers from Central America to the Philippines through the span of the Pacific Ocean when Planet Earth turns on its axis from West to East in unending perpetual motion.”

And it’s potential in this breathe: “At 12 million barrels per day capacity priced at US$7.00 per barrel, this is US$84 million per day or US$30.66 billion per year, enough to wipe out all existing foreign debts of the Government in one year, revenue-wise in foreign exchange.”

from the NEWS FLAVOR

very promosing but how true. no offense pls. thanks

try to research about deuterium it all leads to philippines

yeah google it and i found a lot site.

from: http://citizenonmars.blogsome.com/2008/06/17/deuterium-the-white-gold-of-the-philippines-2/#comments
When I was in highschool, Michael Peralta, an old neighborhood friend from Carmen Street but who is now residing in Los Angeles, once spoke to me in a very animated fashion how the Philippines could one day become the richest country in the world. As a prelude, Michael said to me that his father had some vital information why a number of foreigners were in the country for a very secret purpose. I wondered loudly to him how secret it was and asked him if he could actually let me know some of the “secret’. He then informed me without hesitation that the foreigners were here mainly to study and find out ways on how to extract deuterium from the Philippine seas. I asked how come his father knew about all those stuff and what “deuterium” was in the first place. With gasping breath, and with gleaming pride for that matter, Michael told me as a matter of fact that his father was a war veteran and because of this, he had American contacts in the CIA. The CIA thing sounded preposterous to me at that time but when I recently read some articles in the Internet about deuterium, I started to wonder if the CIA talk of Michael was plausible after all and that maybe the CIA was behind the sudden departure of Michael’s whole family to Los Angeles later that year, where in a year’s time he was already driving a very exotic looking red corvette (might be from second hand store) as evidenced by a picture that he had sent to the neighborhood kids through a very kind uncle. This story may start to sound like a brimming Tom Clancy thriller but before anything gets out of hand, that CIA talk of Michael is just that and nothing else t o it I am pretty sure on that and their immigration to America was due mainly to his father being a USAFFE during World War II. But Michael’s rambling on deuterium was completely a different matter—it sounded to me then so awfully good that I had wished it to be true already even though it wasn’t true at all at that time, and even now.

There is really something to this issue on deuterium that lingers long and never goes away completely. It had been virtually popping and bobbing up in the local media every now and then—especially in the last couple of decades. The Cebu-based news outfit The Freeman published the most recent news article on deuterium. In that article, Freeman publicized a certain study on deuterium by a Filipino scientist working in a Canadian agency. Canada by the way is the world’s leading producer and consumer of deuterium as an energy source. There had been many rumors and hush-hush talks before about certain groups of foreigners, possibly American and sometimes German, that were in the country to initiate drilling projects that should siphon-off the coveted deuterium from the Philippine seas. All those talks just died down however and nobody really minded them, perhaps everyone just disregarded some weird-sounding element that is supposedly found in the Philippines in great volume. In fact, even as we speak now, I would not be surprised if Exxon or Shell has some of its people working night and day trying to unravel the key to gathering the millions of barrels of “white gold” underneath our seas.

I was watching Sentro last night, the upstart news program from ABC 5, and heard Ms. Ali Sotto do some lighter take on the news as she reported how hydrogen-fuelled cars were already running in the streets of Washington D.C.. This particular news segment was apparently so short that I had to scour the Internet for a more elaborate rendering of the news item. I read a couple of related news articles from not-too-famous news sites on the net.

It was reported that the United States Government, through the Department of Energy and General Motors had unveiled an $88 Million joint project in order to put a fleet of hydrogen-fuelled cars on the streets of Washington D.C., New York and Los Angeles within a year’s time. The fleet would consist merely of 40 of such cars but most of the money would be spent on putting up a number of hydrogen refueling stations all over the streets of those pilot cities since the main cause why consumers are not buying too many hydrogen-fuelled cars these days is basically due to the lack of gas stations peddling or selling hydrogen gas or liquid hydrogen. Come to think of it, even if any of us had all the money to buy this car stuff right now, like for example if some of us are sons and daughters of Taipans with money to burn, we wouldn’t be able to use them anyway, at least not for long, unless we all fly all the way to America to buy gallons and gallons of hydrogen fuel.
But again come to think about the possibilities. If only there were enough hydrogen-refueling stations all over our city streets, our days of being dependent on crude oil (freshly-drilled from the dusty sands of Sahara) would soon be over and our atmosphere would be a lot more livable since the only end product of hydrogen fuels is water. Water, instead of carbon dioxides that make our urban landscape looked orange or yellow at dusk.

I really hope that this project of GM and the United States Government would entirely succeed for reasons that we all should know by now.

And so this bit of news on hydrogen-fuelled cars reminded me of the high school talk I had with an old friend from the neighborhood concerning deuterium. What is deuterium and how does it become an energy source? Deuterium is the end product when a common tap water (H2O) is subjected to enormous pressurize of gigantic proportion that the oxygen element in the H2O compound is forced out of the combination, making the hydrogen element to purify and consolidated all the more. Since in deuterium, the hydrogen becomes so solid and unadulterated, hydrogen gas can be easily obtained from it since a natural electrolysis happens immediately the moment deuterium is exposed to room temperature. Meaning to say, when deuterium is used as a base in obtaining hydrogen gas, the generation process is much less expensive. Right now, hydrogen gas and liquid hydrogen that are often used to power jets and giant trucks, are sold at very steep prices (much more expensive than gasoline) because it is so costly to produce them, necessitating an energy-consuming and lengthy electrolysis process that are undertaken in order to separate the hydrogen compound from common water. When deuterium is used, the very expensive process of electrolysis would be bypassed and set aside in the production of hydrogen gas and therefore, obtaining hydrogen fuel becomes more efficient and less expensive by a mile.

The Philippines is identified to hold the greatest amount of deuterium deposit, somewhere in the area known as Mindanao Trench, the part of the Pacific Ocean just off the shores of Surigao. Deuterium is most prevalent in an area more widely known in the whole world as The Philipppine Deep. In the Freeman news article (dated August 2004), Dr. Anthony B. Halog, the Filipino scientist working at the Sustainable Technology Office of the Institute for Chemical Process and Environmental Technology, and the National Research Council of Canada described the Philippine deuterium wealth in this manner:

“A big deposit of 868 miles long, 52 miles at widest point, and 3 miles at deepest point, replenished by nature 24 hours a day after deuterium travels more than 12,000 kilometers from Central America to the Philippines through the span of the Pacific Ocean when Planet Earth turns on its axis from West to East in unending perpetual motion.”

And it’s potential in this breathe:
“At 12 million barrels per day capacity priced at US$7.00 per barrel, this is US$84 million per day or US$30.66 billion per year, enough to wipe out all existing foreign debts of the Government in one year, revenue-wise in foreign exchange.

Public works, private construction, economic and financial booms are expected to happen in the Philippines in the same manner as those which happened in the Middle East and financial centers of the world from 1974 to 1984, with everybody earning their respective comfortable livelihood, while pricing basic prime necessities at reasonable and affordable levels.”

At present, deuterium seems to be produce exclusively through an expensive synthesizing process, by subjecting ordinary tap water to enormous pressure using some highly-advanced machinery or equipment and thus the price of hydrogen fuel remain relatively out of reach from the ordinary consumers of fuels. But if the deuterium deposit under the Philippine seas can be obtained, hydrogen gas prices could become far more reasonable and affordable. If natural deuterium is utilized as the base in the production of hydrogen fuel—in both its most widely used form as hydrogen gas and liquid hydrogen—the generation process would become more efficient and much cheaper. And mind you, deuterium as a source of energy is not only useful to power cars, trucks and planes. It is also being utilized to power factories and power plants in the same manner that nuclear power plants are operated. With deuterium as moderator, nuclear power plants could do away with enriched uranium as a main fuel source and this means, deuterium use could generate a whole new specie of power plants that are a lot safer—safer by a grand mile.

The problem faced by those who wants to extract natural deuterium from the Philippines seas is probably the enormous pressure that is existing in the very area where deuterium are supposed to be found. To reach the area of deuterium concentration, a drilling system should reach a level of at least 30,000 feet deep into the ocean, where the water pressure could reach as high as 10,000 psi, or the equivalent of 10,000 tons of load pressuring from all direction. Apparently, there is no material known today that could withstand such enormous amount of pressure. Maybe diamonds could be strong enough to endure the extraordinary pressure down there but imagine how much diamonds should be needed in order to manufacture a very long tube. That’ll be unimaginable in both cost and expanse. But scientists nowadays always finds a way and when the time comes that a kind of metal could actually be developed, one that could reach ten thousand meters underwater without breaking apart and efficiently drill out barrels and barrels of sea water that contains deuterium, then that’ll be the time the Philippines could become the main hawker of fuels for the world’s cars, airplanes, buses, factories, power plants and whatever that runs and hums not by its own accord.
So deuterium may be the gasoline of the future, the main energy source of the next millennium, and the Philippines is the only country that has them naturally tucked under its seabed in an amount and breathe that replenishes on its own every time the Earth rotates and the sea shifts from side to side.

Australia mining firm strikes gold in RP

By Riza T. Olchondra
Philippine Daily Inquirer
First Posted 00:28:00 04/19/2010

Filed Under: Mining and quarrying, business

AUSTRALIAN mining company Red 5 Ltd. found gold during early drilling in Mapawa, an area located near its Siana gold project in Surigao del Norte.

“We’ve known there was gold at the surface. But we’ve got some evidence of mineralization at deeper levels,” managing director Greg Edwards said in a phone interview.

Red 5, the Perth-based company whose shares are traded on the Australian Stock Exchange, earlier published a report saying that the inaugural deep drill hole at Mapawa was extended by 100 meters beyond the original plan to a final depth of 546 meters due to the favorable geology.

The report said the first hole yielded mineral content of a gram of gold per ton at a depth of 189 meters.

Mapawa lies 20 kilometers north of the Siana gold mine development.

Red 5 is now on its third hole, which could go down to a depth of 1,000 meters.

The company started exploration drilling at Mapawa in January this year, and Edwards said the company would be well funded to pursue an active exploration program if warranted.

The company is spending about P150 million initially for its drill program.

Further development could take about three or four years, he said.

Edwards expressed excitement over the prospect of having another development project after Siana.

“The copper and gold resources in the Philippines are among the best in the world. We’re excited to show that these resources can be explored and tapped in a responsible, environmentally friendly manner,” Edwards said.

Last December, Red 5 completed its fund raising activities for the development of the $73-million Siana gold project.

Meanwhile, for the Siana project, Red 5 hopes to produce over a million ounces of gold.

The Siana gold project’s 12-year life span is seen to be split evenly between open pit and underground extraction.

Gold is currently priced at around $1,115 per ounce.

The untapped wealth of Philippines - US$840B. That's huge. If the minerals are properly extracted, sold/exported, it will have tremendous positive change in our GDP and the wealth of the nation. :cheers:

If that is true, sana wag tayong tumulad sa Equatorial Guinea.

While at it, let's diversify.

Dapat matagal na tong napag-isipan ng gobyerno eh. Literal tayo na nawawalan ng lupa sa nangyayari. Tapos yung nangyayari pa sa Mindanao ngayon, binebenta ang ore base sa Nickel content ng ore sample pero aside from Nickel, madami pang other minerals na kasama dun sa ore sample ang hindi nadedetermine at nalalagyan ng presyo dahil ang binebenta nga ay yung Nickel. In a way, nalulugi tayo dahil lumalabas lahat ng bansa sa presyong Nickel lang. :ohno::ohno::ohno:


Unprocessed ore exports barred in 2016 (http://businessmirror.com.ph/index.php?option=com_content&view=article&id=22411:unprocessed-ore-exports-barred-in-2016&catid=23:topnews&Itemid=58)

THE government has finally decided the country would be better off exporting processed ore because the value added will earn the treasury and the local industry more, now that the Department of Environment and Natural Resources would approve only exports of semiprocessed or processed metallic minerals starting 2016.

Horacio Ramos, acting environment secretary, said the government is “giving [mining companies] up to five years to improve their operations. After five years, direct ore shipments will no longer be allowed. The minerals should have undergone semiprocessing, if not fully processed.”

The proposed measure will be incorporated in a memorandum order which the Mines and Geosciences Bureau is polishing for approval in a meeting tomorrow.

Even as the picture of added earnings because of value added is painted by the government, a number of mining firms have expressed concern about the possibly stiff price tag for necessary additional investments for processing. What the government’s answer to this, Ramos did not spell out, but he did say, “they understood that the measure is intended to enhance mining as a business and improve [their] margins in the long run.”

Ramos said the government is also looking at cutting red tape, strictly enforcing government regulations on safety and health, and standardization of ore resources and reserves for a uniform description of minerals.

Last year the DENR began streamlining the awarding of environmental and mining permits, reducing processing to seven weeks from 17, that of certificates of noncompliance to two days from 3 months, and environmental compliance certificates, to three weeks from three months.

The DENR is also looking at harnessing the power of the Internet to create a system for the monitoring of the issuance of permits down to the regional level.

| Corporate News
Business World
Posted on 09:51 PM, April 22, 2010
Four firms to bid for Diwalwal


THE COUNTRY’S largest mining company, Philex Mining Corp., and three others have pre-qualified for the auction of a portion of the Mt. Diwalwal gold-rush site in Mindanao, according to state-owned Philippine Mining Development Corp. (PMDC).

In a bid bulletin, the PMDC Bids and Awards Committee pre-qualified Philex Mining Corp., construction firm F.F. Cruz & Co., Inc., local miner Carrascal Nickel Corp., and listed APC Group, Inc. with South China Resources, Inc.

The 729-hectare (ha.) land is part of the 8,100-ha. Diwalwal Mineral Reservation, and is the fourth of the five portions for sale.

The bidding will be held on May 14, with only Filipinos allowed to join.

The minimum bid price was set at P300 million.

The first portion of the Diwalwal Mineral Reservation, the 1,620-ha.

Upper Ulip-Paraiso area, was awarded to Paraiso Consolidated Mining Corp., a consortium of four local miners, in July last year. The second portion, the 1,359-ha. Higanteng Bato area, was awarded to Carrascal Nickel Corp. The third portion, the 1,296-ha. “Letter V area,” went to the only bidder, Blackstone Mineral Resources, Inc.

The fifth portion, covering 950 has., is reserved for indigenous peoples. -- K. A. Martin

wala pa bang development d2? paki naman. thanks

mahirap kasi minahin yan kung totoo. biro mo sa deepest area

^^ it's still a theory..

The Philippines, as a small third country which is indulged in serious economic and political crisis, has still has a chance to prove that it can possibly be one of the richest countries in the world considering its great volumes of precious reserves and mineral deposits particularly, the so-called “Deuterium: The White Gold of the Philippines”.

According to Major Tom/June 17, 2008, (Deuterium: The White Gold of the Philippines, The Economy Science and Technology), “the Philippines is identified to hold the greatest amount of deuterium deposit, somewhere in the area known as Mindanao Trench, the part of the Pacific Ocean just off the shores of Surigao. Deuterium is most prevalent in an area more widely known in the whole world as The Philipppine Deep. In the Freeman news article (dated August 2004), Dr. Anthony B. Halog, the Filipino scientist working at the Sustainable Technology Office of the Institute for Chemical Process and Environmental Technology, and the National Research Council of Canada described the Philippine deuterium wealth in this manner:

“A big deposit of 868 miles long, 52 miles at widest point, and 3 miles at deepest point, replenished by nature 24 hours a day after deuterium travels more than 12,000 kilometers from Central America to the Philippines through the span of the Pacific Ocean when Planet Earth turns on its axis from West to East in unending perpetual motion.”

And it’s potential in this breathe: “At 12 million barrels per day capacity priced at US$7.00 per barrel, this is US$84 million per day or US$30.66 billion per year, enough to wipe out all existing foreign debts of the Government in one year, revenue-wise in foreign exchange.”

from the NEWS FLAVOR

Third country?:cheers::lol:

Manila grants SC55 extension
http://www.upstreamonline.com/live/article213335.ece

The Philippine Department of Energy has granted NorAsian Energy an extension to the SC 55 permit area and approval to revise the exploration programme.

Upstream staff 29 April 2010 03:52 GMT

The permit area has been increased by another 880 square kilometres and its work commitment revised to include the drilling of one well each by August 2012 and August 2013.

The permit is covered by new 3D seismic acquired in a survey earlier this year.

Australia’s resource giant BHP Billiton has agreed to fund a 3D survey in exchange for a farm-in option for a 60% stake in SC55.

The offshore permit includes the Marantao prospect, which holds 3.3 trillion cubic feet of gas and over 1 billion barrels of oil resources in place.

NorAsian Energy is a wholly owned subsidiary of Australia-listed Otto Energy.

Question:

What is the exact proven oil reserve and gas reserve as off this date of the Philippines?

ang alam ko lang, most of the reserve is in, around or offshore Palawan.

I hate that term, offshore. Pinauso lang ni gma. Ibig sabihin daw ng offshore, ndi sa palawan, or wala sa palawan.

ang alam ko lang, most of the reserve is in, around or offshore Palawan.

I hate that term, offshore. Pinauso lang ni gma. Ibig sabihin daw ng offshore, ndi sa palawan, or wala sa palawan.

Well, Offshore means it's on the ocean or sea. In that case, the offshore oil reserve near palawan is actually on the South China Sea. Hinde naman pwede na inconsider sa palawan ang isang OFFSHORE oilrig standing on SOUTH CHINA SEA kasi hinde na sya sakop ng jurisdiction ng palawan.

ang alam ko lang, most of the reserve is in, around or offshore Palawan.

I hate that term, offshore. Pinauso lang ni gma. Ibig sabihin daw ng offshore, ndi sa palawan, or wala sa palawan.

^^:wtf::doh:

(edited)

ang alam ko lang, most of the reserve is in, around or offshore Palawan.

I hate that term, offshore. Pinauso lang ni gma. Ibig sabihin daw ng offshore, ndi sa palawan, or wala sa palawan.

???? I suggest you research muna about oil and gas exploration in the country and the technical terms. Pinauso ni GMA??? What is this?
Exploration is also done in Sulu Sea, Tanon Strait in Cebu
http://img259.imageshack.us/img259/7545/tanonah5.jpg
http://www.cebudaily.com/tanon-strait-oil-exploration-positive-prospects-for-cebu-seen-despite-public-debate/

ang alam ko lang, most of the reserve is in, around or offshore Palawan.

I hate that term, offshore. Pinauso lang ni gma. Ibig sabihin daw ng offshore, ndi sa palawan, or wala sa palawan.

Kuya ano bang ibig mong sabihin, hindi ko kasi maunawaan e... sorry for the innocence.

Pero as far as I know, ang offshore e matagal nang term yun...

At saka yung signature mo kuya... maybe mas maganda kung liitan mo yung text... medyo distracting e. Mas malaki pa sa text ng replies sa forums although hindi ako moderator at wala ako sa position to say it.

dapat dito lecturan ni maritess.....you know batman and robin you know....:lol:

^^^^

isa lang ang masasabi ko dyan, "no comment." :lol: :cheers:

dapat dito lecturan ni maritess.....you know batman and robin you know....:lol:

Kilala mo pala kung sino si Maritess ha?...:lol:

cno si Marites?

^^Try searching Rex Navarette...

http://i962.photobucket.com/albums/ae105/kerenskyalex/oilexplorationinmapunisland.jpg


The Government of the Republic of the Philippines (GRP), better known as “Imperial Manila”, in cahoots with national and international oil exploration companies are continuously exploring the resources of the Bangsamoro people in their homeland. In Bongao, Tawi-Tawi, a top government official said an ongoing oil and gas exploration project in the island province of Tawi-Tawi has yielded possitive results for an encouraging volume of mineral deposits with commercial value.

Governor Sadikul Sahali has disclosed that Tawi-Tawi is a potent source of oil and gas, even as foreign and local oil drilling companies are pursuing for the mining project on mid-sea off the island municipalities of Mapun and Taganak.


http://i962.photobucket.com/albums/ae105/kerenskyalex/Sabahmap-Mapunisland-resize.jpg


Oil deposits estimated at 500 million barrels and some 1.5 trillion cubic feet of natural gas are possitively discovered by giant miners in the deep seas of this province.

The government of President Arroyo had concentraded on oil exploration in Mindanao after its successful drilling in Palawan which yielded gasoline.

The government claimed that this possitive development will solve the fuel problem of the country and will turn the province into a highly industrialized area that will help strengthen the economic situation of the local constituency.



http://i962.photobucket.com/albums/ae105/kerenskyalex/balabactocagayandesulu-mapunisland.jpg


It was not reported clearly on how the drilling is done, but Sahali said, what is important there is now an encouraging result of the oil exploraltion in the island province.

The oil explorations in Tawi-Tawi are undertaken by Union of Oil of California, Malaysian Sandakan Oil, Australian BHP Biliton, Exxon and several other Filipino firms. These companies are also considering Sulu sea as next mining sites.


http://i962.photobucket.com/albums/ae105/kerenskyalex/sandakantocagayandesulu-mapunisland.jpg


Meanwhile, a political officer of the MILF based in Western Mindanao, said the oil exploration by the Philippine government in the Moro homeland is the main reason why this government refused to grant genuine self-governance to Moros in Mindanao. To recall he said, the previous Estrada administration bombarded the marshland area of Maguindanao because the government was aiming to take hold of it, which is potential for oil and gas deposits.

The MILF officer is calling for his fellow Moros in Tawi-Tawi to safeguard the Moro resources from the ongoing exploration done by the government, which he said a tormentor of our people..


http://www.luwaran.net/index.php?option=com_content&view=article&id=356:imperial-manila-sucks-moro-wealth-in-mindanao

the word offshore is use in the oil exploration industry for more or less 30 years already. The word " Offshore " in the oil industry means oil drilling located at sea and not on the land.

shore means land.

the word offshore is use in the oil exploration industry for more or less 30 years already. The word " Offshore " in the oil industry means oil drilling located at sea and not on the land.

shore means land.

^^:wtf::doh:Did I miss something here or did I just got a lecture on something I already know???:doh: If you would have read one above the one that you have quoted, you will notice the bolded quote "offshore. Pinauso lang ni gma", courtesy of palawan_buddy, hence the expression of WTF and duh! Do you get it??? Faham??? Wakarimasu??? Boy, are you barking on the wrong tree....**:ohno:**

You explain that to palawan_buddy and NOT me...

I think what he means is that GMA use offshore word to the palawenos meaning that the oil rcover in palawan is not part of palawan and palawan should get the share of it.

I hope my gues is correct.

I do also noticed that Admin here delete some post and they really control the Phil Forum as there own site.

This is a free and public forum.

PEACE

^^^^Well if that's what he meant then the argument of "how near does a rig need to be to the mainland to be considered part of it's territory and thus benefit from it", should be his point of contention...di ba?

And regarding the forum and the mods...hmmm...although this is a public forum and we are able to express our opinions freely, however this is still a PRIVATE site. We might not agree with it, however the admins and the mods do have the last say regarding posts. The mods are not answerable to members. Mods are answerable to other mods and admin and admins are the owners and they can do whatever they want. The mods are empowered by the admins (the owners) to police his/her site. Mods power tripping however is a differnt story...

I believe there is also a certain rule regarding how to course disagreements with mods in the rules and regs. Perhaps it's best to course ones disagreement through the means the rules states.

Tuesday, May 04, 2010
Red 5 award Siana open pit mining contract to Delta Earthmoving

http://www.proactiveinvestors.com.au/companies/news/6885/red-5-award-siana-open-pit-mining-contract-to-delta-earthmoving-6885.html

Red 5 (ASX: RED) has reported that Delta Earthmoving Inc., a Philippines based organisation, has been provided with a letter of intent to award a life-of-mine contract for the open pit at the Siana Gold Project.

The Siana Gold project is located in the Surigao Gold District of the Philippines. An Indicated Mineral Resource within the mine environs is estimated to exceed 800,000 ounces of gold and the company says there is excellent potential to extend this resource.

Greg Edwards, Manging Director, said Delta was chosen from five tendering organisations based on, among other things, overall cost, equipment suitability and availability, equipment servicing arrangements, explosive supply arrangements and local employment quotas.

The life-of-mine contract includes a 10.3 million bcm – drill and blast, excavate, load and haul programme.

Delta will also be responsible for suppling material for the tailings dam construction and the maintenance of mine ramps and roads.

The fleet comprise Komatsu PC800 excavators (two initially stepping up to six units) and Komatsu HM400 six wheel drive 40 tonne articulated trucks (nine initially stepping up to 32 units), plus ancillary equipment, and is available from June 2010 – in line with Red5’s preferred schedule.

Equipment hours on all units are in the low to modest range. A Komatsu accredited maintenance programme will keep spares and consumables at site on consignment.

The explosives supplier (Orica Mining Services) will initially provide all necessary permits.

The tender was within the company bankable feasibility financial estimates whilst the committed fleet numbers exceed Red5 minimum estimated requirements.

mahirap kasi minahin yan kung totoo. biro mo sa deepest area

I remember some 15 years ago this deuterium issues even reached the hall of congress for deliberation and investigation. I was one of those who got curious about it, then asked a friend from petrochem if there was truth about it. They said it's just a fiction write-ups. Even one panel in congress called it “Deuterium Delirium”.

Anyway, since 1951! That Philippine Deep and Mariana Trench had been explored already! and by a manned vessel the last was 1995 by Japanese un-manned exploration could be out of curiousity of Deuterium.:)


The Mariana Trench - Exploration

The Mariana Trench was first pinpointed and surveyed in 1951 by the British Survey ship Challenger II., which gave its name for the trench's deepest point, "The Challenger Deep".

The challenger deep is located near the southwestern extremity of the Mariana Trench and was first explored in 1960 by Swiss scientist Jacques Piccard & US Navy Lt. Donald Walsh in bathyscaph "Trieste", a US Navy owned submersible manned vessel (Designed by Jacques Piccard's father Auguste) which set a record by diving to a depth of 10, 900 meters (35,810 feet).

The scientist had the brilliant idea to use 70 tons of gasoline to fill the 50 foot long sub's floats, knowing that gasoline was lighter than water, which in turn was used to flood the submersible's air tanks, enabling its descent. As the depth increased, the gasoline compressed, which reduced the sub's buoyancy and accelerated its progress until about 5 hours later, the Trieste had reached the ocean floor, withstanding over 16,000 pounds of pressure per square inch.

The Challenger expedition gave us our first glimpse of deep ocean basins and other characteristics of the ocean floor. In addition to exploring the Mariana Trench, the Challenger gathered important data on the features and species of the Pacific, Atlantic, and Indian oceans, covering nearly 130,000 kilometers, (approx. 71,000 nautical miles). Nearly 5000 new species of sea creatures were discovered during the 4 year expedition.

In March of 1995, the Japanese unmanned submarine Kaiko was used to conduct further research deep within the Mariana Trench. The Kaiko is a sophisticated vessel with a highly accurate positioning system, allowing scientists to gather important data without the need to endanger a human diver.

SOURCE:http://www.marianatrench.com/mariana_trench-exploration_001.htm

Aussie group to drill 5 oil wells in offshore Palawan

By Amy R. Remo
Philippine Daily Inquirer
First Posted 22:06:00 05/24/2010

Filed Under: Oil & Gas - Upstream activities, business, Economy and Business and Finance

MANILA, Philippines—Australian firm Nido Petroleum Ltd. is pursuing an “ambitious” five-well exploration drilling program over the next 18 to 24 months, aimed at unlocking the potential of the Northwest Palawan basin.

In a regulatory filing, Nido chair William Bloking said the program would give the company an exposure of up to three billion barrels of oil and was designed to maximize the chance of a material discovery while testing the major play types in the basin.

“Your board and management believe firmly in the potential of the basin. We also believe that we have taken a very disciplined and prudent approach to the technical evaluation of our acreage in order to de-risk the portfolio to the extent possible prior to drilling,” Bloking said.

Bloking said that within the Northwest Palawan basin, the company has a portfolio of 112 targets with potential oil reserves of 11.5 billion barrels. huge

Prospect sizes of the targets ranged from less than 50 million barrels to more than a billion barrels, with a number of the prospects offering multiple reservoir objectives.

Nido has five service contracts (SC) within the basin—SC 14C1, which contains the Galoc oil field; SC 54A, which has the Tindalo oil prospect; SC 54B, with the Gindara, Lapu Lapu and Princesa Deep drilling candidates; SC 58, and SC 63, which contains the Aboabo-1 discovery.

“We expect to fund the program via our existing cashflow from Galoc, a successful development at Tindalo and other discoveries,” Bloking said.

“In support of this program, we are issuing tenders to purchase $3.5 million in long lead time items and are in early discussions with rig companies for the first two wells in SC 54B [Gindara] and SC 63 [Aboabo],” he added.

It was in January 2005 that Nido Petroleum decided to pursue development within the Northwest Palawan basin after reviewing the results of a joint basin study in which Nido was a participant.

The company was able to build “contiguous acreage portfolio of approximately 30,000 sq km, making Nido a dominant player in the basin.”

Over the last three years, Nido was also able to acquire, process and interpret about 10,000 line km of 2D seismic data and almost 2,500 sq km of 3D seismic data.

Aussie group to drill 5 oil wells in offshore Palawan

By Amy R. Remo
Philippine Daily Inquirer
First Posted 22:06:00 05/24/2010


... up to three billion barrels of oil ...


Bloking said that within the Northwest Palawan basin, the company has a portfolio of 112 targets with potential oil reserves of 11.5 billion barrels. huge

Prospect sizes of the targets ranged from less than 50 million barrels to more than a billion barrels, with a number of the prospects offering multiple reservoir objectives.



Dati-rati million barrels ang pinag-uusapan, now it's on billion level na.
We're going to be progressive soon.

Magiging tulad ba tayo sa middle east sa dami ng langis?:D

matatalo natin pag sinama langis ng nyog, :D

^^ isama mo na ang palm oil. lumalaki din ung industry sa Mindanao. :D

Totoo na ba ito? aba kung billion na ang na descover sa palawan baka sa sunod na tuklas trillion na.

Sana ito na simula ng pag mina ng napakalaking deposit ng langis sa boung mundo.:banana::banana::banana:

gaano ba karami langis sa Saudi? sa Dubai?

Totoo na ba ito? aba kung billion na ang na descover sa palawan baka sa sunod na tuklas trillion na.

Sana ito na simula ng pag mina ng napakalaking deposit ng langis sa boung mundo.:banana::banana::banana:

At yung Deuterium na sinasabi nila... Totoo kaya yun?

Dati-rati million barrels ang pinag-uusapan, now it's on billion level na.
We're going to be progressive soon.

Magiging tulad ba tayo sa middle east sa dami ng langis?:D

matatalo natin pag sinama langis ng nyog, :D

^^ isama mo na ang palm oil. lumalaki din ung industry sa Mindanao. :D

Totoo na ba ito? aba kung billion na ang na descover sa palawan baka sa sunod na tuklas trillion na.

Sana ito na simula ng pag mina ng napakalaking deposit ng langis sa boung mundo.:banana::banana::banana:

It is really a good sign for the country.....:cheers:

^^Wow, sana tuloy-tuloy na 'to. Definitely, good news 'to para sa atin :).

San Miguel Energy to mine coal in 3 sites
By Paul Isla, Business Mirror
Posted at 05/26/2010 6:27 AM | Updated as of 05/26/2010 6:27 AM

MANILA, Philippines - San Miguel Energy Corp. (SMEC), the power arm of San Miguel Corp., has recently acquired the right to operate in three mining areas in Mindanao with the capacity to produce coal for 1,200 megawatts (MW) of electricity.

Ramon Ang, SMC president, said they have already concluded talks with the three local firms that own the concessions. “We have already bought 100% of Daguma, Bonanza and Sultan.”

He said SMEC is consolidating all the coal mines in the area so they can determine the exact volume of the coal deposits. Once they know, Ang said they would start development, including the power plant.

He said they will continue to look at other opportunities for coal-mine acquisitions in Mindanao. “We are interested to acquire all that” because mining and using coal is cheaper and faster compared with other fuels like natural gas. He believes that clean-coal technologies could address environmental concerns.

He added their power firm is also planning to put up a 300-MW coal plant in Negros. “We’re looking into it already.”

He said their newly acquired Daguma Agro Minerals Inc. concession has rights in South Cotabato and Sultan Kudarat, an area known for its rich coal deposits.

Daguma Agro, owned and controlled by Ben Guingona, used to be the partner of UK-based Crew Gold Corp., which pulled out from the coal project in barangay Ned, Lake Sebu, South Cotabato, due to strong opposition from the Church.

Reminder to all Oil @ Gas Exploration and tranport companies; Please put more effort on preventive measures on accidents. Not let the tragedy of Oil Spill in Guimaras to happen again. On Palawan Offshore platform companies it will be a disaster if you let accidents happened similar to Gulf Of Mexico and now in Singappore Oil Spill.

Singapore Battles Oil Spill
May 26, 2010, 3:00 AM EDT

(Updates containment effort in fourth paragraph.)

By Yee Kai Pin

May 26 (Bloomberg) -- Singapore is stepping up efforts to prevent an oil slick from reaching its shores after a tanker, owned by a unit of MISC Bhd., collided with a bulk carrier near the world’s busiest container port.

Non-toxic and biodegradable dispersants were being used to break the slick into “smaller globules” after the MT Bunga Kelana 3 ran into the bulk carrier MV Waily yesterday 13 kilometers (8 miles) southeast of Changi East, the Maritime and Port Authority said today. Bunga Kelana 3 is owned by AET Tanker Holdings Sdn., a unit of MISC, the world’s biggest operator of liquefied natural gas carriers.

The spill, equivalent to 18,325 barrels or enough to fill an Olympic-sized swimming pool, amounts to three days of leakage from BP Plc’s damaged well in the Gulf of Mexico. MISC shares fell for a sixth day, the longest losing streak in five years.

“We think the incident may have marginal financial impact on the group as it is obviously fully covered by insurance,” Ng Sem Guan, a stock analyst at broker OSK Securities Sdn. in Kuala Lumpur, said in a note. “The incident caused significant damage to the vessel’s hull,” according to AET.

The stock declined 3.1 percent to 8.15 ringgit at the midday break in Kuala Lumpur, against a 0.2 percent gain in the benchmark FTSE Bursa Malaysia KLCI Index.

As of 11:30 a.m. local time today, 15 vessels and more than 120 personnel have been deployed and 3.3 kilometers of containment booms used, the Maritime and Port Authority said.

Not Affecting Coastlines

“The oil slick has not affected Singapore’s coastlines,” the authority said on its website. “The waters in our anchorages and the Traffic Separation Scheme south of Changi were reported to be clean. Small patches of oil and sheen were sighted at Changi Naval Base.”

Treasure Marine Ltd. is the beneficial owner of the Waily, Bloomberg data showed. The 25,449-deadweight-ton vessel, flying a St. Vincent & The Grenadines flag, was built in 1983. It sailed from the east Indian port of Paradip about two weeks ago.

“I should think that they would know very well whether more oil is going to leak or not, said John Vautrain, senior vice-president at U.S. energy consultants Purvin & Gertz Inc. in Singapore. “This is not like BP’s problem in the Gulf of Mexico. This is not a difficult spill situation.”

BP estimated its Gulf of Mexico oil well has been leaking 5,000 barrels a day since an April 20 explosion aboard the Deepwater Horizon drilling rig, which killed 11. Independent scientists have told the U.S. Congress crude was spewing at more than 10 times that rate.

Singapore’s Worst Spill

Singapore’s worst oil spill was in October 1997 when the Cyprus-flagged Evoikos collided with the Thai-registered Orapin Global, a Very Large Crude Carrier. More than 25,000 tons of oil were spilled.

AET is undertaking an “internal transfer” of Bintulu grade crude oil from the vessel, the company said today in an e- mailed statement. The tanker, struck on its port side as it sailed east to west, will be moved after the underwater damage is assessed.

The Malaysia-flagged Bunga Kelana 3, classed as an Aframax tanker, was built in 1998 with 12 cargo tanks, according to data compiled by Bloomberg. It has a double hull, a design meant to prevent oil leaks or flooding beyond the outer compartment.

“Double hull does not guarantee there will never be a spill,” said Vautrain at Purvin & Gertz. “Double hull means it takes a bigger collision to create a spill. I shouldn’t think it’ll take too long to clean this up.”

The vessel had a loaded draft of 11.4 meters (37.4 feet) yesterday, compared with its maximum of 14.9 meters, based on transmissions captured by AISLive on Bloomberg. This indicates it was almost fully laden when it departed Bintulu in Malaysia’s Sarawak state on May 23.

“AET is also cooperating fully with Malaysian authorities in readiness of possible clean-up operations along the southeastern coast of Peninsular Malaysia,” the company said.

--Editors: Ang Bee Lin, Amit Prakash.

To contact the reporter on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net

To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net

Basic Energy finds potential geothermal energy source
abs-cbnNEWS.com
Posted at 05/27/2010 3:15 PM | Updated as of 05/27/2010 3:15 PM

MANILA, Philippines - Basic Energy Corp. said on Thursday it has completed the first phase of its exploration program in Batangas which it believes to a geothermal-rich area.

“Basic's initial assessments indicated that the area has a good potential for a 20 megawatts of power generation that could be developed within a two- to three-year period, considering the existence of adequate infrastructure, adjacency to transmission lines and a strong power demand in the area,” the company said in a disclosure to the Philippine Stock Exchange.

Previously Basic Energy said it has started the first stage of its exploration program for the Mabini geothermal service contract in Batangas, straddling 3,481 hectares, where it planned to survey some 60 pre-identified, prospective geothermal sites.

The initial exploration work was aimed at determining if there are enough steam resources in the area that would warrant the putting up of drilling sites.

Basic Energy said it will submit its findings to the Department of Energy (DOE), a requirement for the approval of the second phase of its exploration program.

The listed company hopes the next phase of its exploration program would validate its initial findings, and give it more confidence to pursue the setting up of drilling sites, and establish the depth of the steam resources.

The Mabini geothermal service contract was awarded to Basic by the DOE last July 10, 2008. Basic Energy had then committed to invest some $3.15 million for initial exploration activities.

Second biggest Gold-Copper deposit in Asia is found in the Philippines

http://businessmirror.com.ph/index.php?option=com_content&view=article&id=25715:the-troubles-that-are-not-the-philippines&catid=28:opinion&Itemid=64

The current biggest threat to the people’s patrimony is large scale mining in the triboundary of Sultan Kudarat, Davao del Sur and South Cotabato which holds the second biggest gold-ore deposits in Asia. The mining concession (formerly awarded to Western Mining Corporation is now owned and operated by the multinational Swiss company X strata plc in conjunction with Sagittarius mines, Inc. a local company. X-strata which is the number 5 biggest mining company in the world has been granted a 50 year Financial and Technical Assistance Agreement (FTAA) by the Arroyo government (renewable for another 50 years) to exploit all the minerals in the 23,000 hectares in the tri-boundary of South central Mindanao.

The largest single foreign investment in the history of the Philippines is ready to come together. Now you would think that would be front-page news, told over and over again. Xstrata Copper, headquartered in Brisbane, Australia, is going to invest $5.2 billion for the first phase of developing perhaps the most important mining project in all of Asia. The Tampakan copper field in South Cotabato is considered of critical strategic importance for economic development across Asia because it is Southeast Asia’s largest untapped copper-and-gold deposit. Literally, tens of thousands of direct and indirect jobs will be created, and the multiplier effect of that investment will be enormous. Zijin Mining Group Co., China’s largest gold producer, is set to buy Australia’s Indophil Resources’ stake in Tampakan for $493 million. Zijin Mining has more confidence in the Philippines than many Filipinos.

lagay natin buong kwento:D


The troubles that are not the Philippines’
Opinion
Written by John Mangun / Outside the Box
Thursday, 27 May 2010 10:16

If we had any common sense as did our forefathers, the hot days of this prolonged dry season should slow us down.

But this is the 21st century, when everyone is wired to the world 24/7 and no one takes a break. A stranger might think, though, that a country like the Philippines—stuck in the middle of the ocean and physically separated so far from the rest of the world—might have a different outlook on life.

In fact, we should. So little that happens in the rest of the world comes close to touching these islands. Yet there seems to be the overwhelming—and I think a little psychotic—need to feel part of the bigger global picture, especially when it comes to negative events and situations.

A local commentator talked about the situation on the Korean peninsula the other day. From the drama and fear in the words that were used, you might think that he was talking about a running gun battle taking place a few streets away. Except for the few thousand Filipinos in South Korea, from a realistic standpoint, who cares?

Another says that the Philippines faces a large political and social risk. Why? Look at what is happening in Thailand. Thai protesters closed the central business district for a month and ended by burning down Thailand’s largest department store because a prime minister was ousted for corruption. If I remember correctly, the same thing happened in the Philippines 10 years ago. Except that after the protest, Filipinos went to Shoemart to shop, not to set it on fire.

I have written extensively these last weeks about the global financial markets. In truth, it is only an interesting intellectual exercise, because my analysis is that the worst-case scenario if the whole thing falls apart is relatively neutral for the Philippines.

The local stock market is performing badly. Yet every single comment and analysis you read about why local stocks and the peso are going down talks only about things happening half a world away, with no thought as to why these events have anything at all to do with the Philippines.

Our banking system is virtually uninvolved, not holding any of the bad debts of Europe. A comment about crashing European economies hurting our exports cannot even quantify the effect because exports are such a small part of the Philippine economy. All the conversation that we heard last year about thousands of overseas workers being sent home was so wrong that no one even mentions it anymore. It is hard to say it when overseas-worker remittances keep hitting records month after month.

The local financial press gives blow-by-blow coverage and analysis of the falling stock markets in New York and Europe as if it was important to the Philippines. You know what? I really do not care if they closed all those stock exchanges. Not one centavo of my wealth depends on what happens on those stock markets, and that is true for 99.9 percent of all Filipinos. How about you and your wealth?

The US dollar rises against the dying euro, and locals rush to sell pesos. Eventually, they will regret it. But in the meantime, crude-oil prices are falling like a rock, bringing local gasoline prices down. Yet we cannot take full advantage of the oil-price drop because some people here are betting on the US economy and currency, instead of putting their faith in the Philippines. I really wish these people would take their dollars and move to the US. They would probably be happier, and the Philippines would probably be better off.

While the local press is filled with stories from the West, what is not mentioned at all is what is happening, the good things that are happening in the Philippines.

The largest single foreign investment in the history of the Philippines is ready to come together. Now you would think that would be front-page news, told over and over again. Xstrata Copper, headquartered in Brisbane, Australia, is going to invest $5.2 billion for the first phase of developing perhaps the most important mining project in all of Asia. The Tampakan copper field in South Cotabato is considered of critical strategic importance for economic development across Asia because it is Southeast Asia’s largest untapped copper-and-gold deposit. Literally, tens of thousands of direct and indirect jobs will be created, and the multiplier effect of that investment will be enormous. Zijin Mining Group Co., China’s largest gold producer, is set to buy Australia’s Indophil Resources’ stake in Tampakan for $493 million. Zijin Mining has more confidence in the Philippines than many Filipinos.

Ayala Corp. unit Integreon, a leading global outsourcing company for back-office work, signs a 10-year contract with a large British legal and tax firm worth over $800 million, and a local “expert” says that outsourcing in the Philippines is near the end of the road. And local investors have sold Ayala shares for the last several months.

Realize a few things. The unemployment rate is higher in the US than in the Philippines. By almost every measure of fiscal and financial soundness and stability, the Philippine national treasury is in better condition than most of the European Union countries. While more than 10 percent of all US banks are on the watch list and are ready to fail, our local banks exceed existing global banking standards and are even financially stronger than the new banking standards that the major Western governments say must be implemented to insure their banking system does not totally collapse.

I am trying to figure out the mindset of someone who seems to wish the Philippines was a part of the world’s problems. Maybe it is not a mindset. Maybe it comes from standing under the hot El Niño sun too long without an umbrella.

Buy the peso. Buy the PSE.

Ongpin group plans to go into oil, mining
By Zinnia B. Dela Peña (The Philippine Star) Updated May 31, 2010 12:00 AM

MANILA, Philippines - A group led by former trade minister Roberto V. Ongpin, who has pulled off a string of acquisitions in the past 18 months, is further enlarging its business portfolio in the country with plans to make an aggressive push into the lucrative oil and mining industries.

On the sidelines of Alphaland Corp.’s annual stockholders meeting Friday, company vice-chairman Eric O. Recto said the group has set up a new company, Tidemark Energy Corp., that will serve as its vehicle for its oil and gas exploration initiatives.

Recto said listed mining firm Atok Big Wedge, which the Ongpin group acquired last year, will take charge of their mining business, pointing out that Atok is particularly keen on copper gold mining which requires a meager start-up capital. 

Ongpin, on other hand, said the group is in talks with several private foreign firms to acquire additional investments in other mining, oil, gas and natural resource assets.

On the local front, the group is planning to acquire shares in existing service contracts, particularly in gold and copper.

Ongpin also confirmed that the group is interested in some of Omico’s mining assets “We’re looking at Omico but no deal has been finalized,” he said.

Omico has seen massive trading volume in recent weeks on takeover speculation that pushed its stock to reach its 52-week high of P0.014 each share.

Omico, a property and mining firm, needs cash to jumpstart the development of the Macawiwili mining property in Itogon following the withdrawal by Canadian mining firm Ivanhoe Mines Ltd from a joint venture agreed upon in April 2007. Under the aborted deal, Ivanhoe was supposed to invest initially up to $5.45 million in the exploration of the Itogon mine.

Ongpin’s group, which includes British investment firm Ashmore has acquired at least 80 percent of Atok, which has gold mining interest through subsidiary Atok Gold Mining Co. Inc. which controls a mine near Baguio City with a projected a startup volume of 50 tons to 75 tons per day.

The Ongpin-Ashmore Group’s investment portfolio in the Philippines also includes Philweb Corp., ISM Communications Corp., San Miguel Corp., and Macondray Corp.

First oil flows at Tindalo
http://www.upstreamonline.com/live/article216337.ece
Australia-listed Nido petroleum said first oil has flowed from its Tindalo project in SC54A permit off the Philippines.

Upstream staff 31 May 2010 02:38 GMT

Oil flowed to the surface yesterday morning from the Tindalo-1 well after the well completion operations and hook-up and function testing of surface production equipment, Nido said in a statement.

A drill-stem testing programme will be conducted to determine the well’s production capacity.

Oil produced at Tindalo will be processed on a leased jack-up rig and transferred to a chartered floating storage and offloading vessel.

Initial production at Tindalo is expected to fall between 7000 and 15,000 barrels per day of oil.

Oriental Peninsula unit to start Palawan mining (http://www.tribuneonline.org/business/20100531bus7.html)

05/31/2010

The mining subsidiary of publicly-listed Oriental Peninsula Resources Group (ORE) will soon commence nickel mining operations in Palawan with the fourth quarter of 2010 as the target schedule for its first ore shipment.

In a statement shortly after ORE’s annual stockholders’ meeting Friday, company chairman and president Caroline Tanchay said barring last-minute legal and weather hitches, its subsidiary Citinickel Mines and Development Corp. could start mining operations as early as July and ship ore by December.

Tanchay said Citinickel — which has been locked in a legal tussle with mining operator Platinum Metals Group Corp. (PGMC) over the firm’s mining concession in Palawan — is close to settling the legal row which will allow it to finally start operating its nickel mines in Pulot and Toronto.

“If this finally pushes through, we forecast that we can make our first ore shipment by the fourth quarter of this year and hope to be cash-flow positive by the end of our fiscal year,” Tanchay said.

As this developed, ORE shareholders approved plans to acquire a majority stake in Oriental Energy and Power Generation Corp., marking the firm’s diversification into the renewable energy business.

“With the world reeling from climate change and global warming… there is a growing bias for environmentally sound business ventures. Even governments around the world are giving great importance and priority to clean, socially responsible and sustainable sources of energy,” Tanchay stressed.

Oriental Energy recently secured the green light from the DENR to start construction of its P2.5-billion, 18-megawatt hydropower project in Madalag, Aklan — the first of five mini-hydro facilities set for development.

Aside from its Aklan project, Oriental Energy has four other service contracts which include the Culaman runoff river hydro-electric power project in Manolo Fortich, Bukidnon and three service contracts for the upper, middle and lower cascades of the Odiongan River in Odiongan, Misamis Oriental. The five projects have a combined generation capacity of 55 megawatts.

Tanchay said the mini-hydropower projects were being pursued to help ease the acute power shortage in the Visayas and Mindanao without depending on expensive and pollutive fossil fuels.

In December 2009, shareholders of ORE approved the change in the listed firm’s primary purpose to include power generation and natural resources development. At the same time, ORE approved an increase in its capitalization and a stock rights offering to raise as much as P600 million to fund the purchase of a 40 percent equity in Oriental Energy.

Ongpin-Ashmore group to re-enter oil exploration (http://www.malaya.com.ph/05312010/busi9.html)

The Ongpin-Ashmore group is planning to re-enter the mining and oil exploration business after selling its stake in Philex Mining Corp.

"We’re actually starting the revival of our mining and oil exploration sector. We got out of it when we sold Philex and we’re getting back to it with the acquisition of Atok," former trade minister Roberto V. Ongpin said at the sidelines of Alphaland’s stockholders meeting.

"Atok is a very well-capitalized company with a billion in cash. We’re in the process of attracting more investors," he added.

Ongpin also said the group has incorporated Tidemark Energy Corp. as the vehicle to acquire oil exploration assets.

Eric Recto, who represents the Ashmore group, said they are planning to have the new company listed in the Philippine Stock Exchange.

"We will infuse assets or cash to be able to buy the oil assets," he said.

Recto said the group is in talks for the acquisition of existing oil exploration assets. One of the assets the company is currently looking at is Service Contract 72 in the Reed Bank.

SC 72 covers of 8,800 square kilometers where the Sampaguita gas field is located.

UK-based Forum Energy Plc., operator of the contract, holds 70 percent of SC 72 through a wholly-owned Jersey company, Forum (GSEC 101) Limited.

The company had been trying to convert its survey contract since May 2006 but was stymied by the signing in 2005 of the three-year tripartite agreement for joint marine seismic survey in the South China Sea between China National Offshore Oil Corp., Vietnam Oil and Gas Corp. and Philippine National Oil Co. The agreement lapsed July 2008, allowing Forum to finally secure its service contract last February.

Ongpin-Ashmore sealed a deal to acquire 58 percent of previously inactive mining firm Atok-Big Wedge in October last year.

In a disclosure to the Philippine Stock Exchange, Atok said it has entered into a deed of subscription with Boerstar for 34.78 million shares with a par value of P1, for a total of P34.78 million.

Boerstar is owned by the Ongpin-Ashmore Group.

[QUOTE=RonnieR;57816959]First oil flows at Tindalo
http://www.upstreamonline.com/live/article216337.ece
Australia-listed Nido petroleum said first oil has flowed from its Tindalo project in SC54A permit off the Philippines.

Upstream staff 31 May 2010 02:38 GMT

Oil flowed to the surface yesterday morning from the Tindalo-1 well after the well completion operations and hook-up and function testing of surface production equipment, Nido said in a statement.

A drill-stem testing programme will be conducted to determine the well’s production capacity.

Oil produced at Tindalo will be processed on a leased jack-up rig and transferred to a chartered floating storage and offloading vessel.

WOOW....... This is a good news.

Sana dumami na yung mga oil well sa bansa.

Initial production at Tindalo is expected to fall between 7000 and 15,000 barrels per day of oil.[/QUOT

Good news....

Ilang million daw reserve ng area na ito?

06/02/2010 | 09:17 PM


Preparations are underway for drilling a new exploratory well in the South Sulu Sea oil field, the Department of Energy said Wednesday.

ExxonMobil Exploration and Production Philippines B.V., which holds the rights to service contract 56 (SC 56) within the field, will drill a third well in the Sandakan Basin at an estimated cost of $100 million.

Energy Undersecretary Ramon Oca said ExxonMobil’s drill rig arrived in the basin area last month. "It's here, but there are so many preparations," Oca said.

The exploratory drilling for the well, called Palendag-1, is scheduled to start this month, the Energy Department said.

Energy records showed that ExxonMobil would continue its exploration commitment with the department by drilling Palendag-1 using the semi-submersible drill rig West Aquarius, the same rig including its anchor handling tugs and support vessels FOS Universe Sea Turbot, Sea Pollock, and Highland Guide that ExxonMobil used in drilling its first two wells under SC 56.

SC 56 covers 8,200 square kilometers and is located about 900 kilometers southwest of Manila and 200 kilometers northwest of Bongao, the capital of Tawi-Tawi province.

ExxonMobil's latest drilling operations follow the first oil flow from Nido Petroleum Ltd.'s Tinadalo field in the Palawan Basin on May 30.

While there was no flow rate report yet for ExxonMobil’s first two wells ─ Dabakan-1 and Banduria -1 ─ Oca said the positive drilling results, which showed signs of hydrocarbon find, piqued the interest of foreign oil companies regarding the South Sulu field.

There were many queries, especially in SCs near that of ExxonMobil’s, and "negotiations" are ongoing he said, but declined to give further details.

The company, the world’s largest publicly-traded international oil and gas firm, spent $200 million to drill Dabakan-1 and Banduria-1.

Mitra Energy Ltd. and BHP Billiton International Exploration Pty Ltd. hold a 25-percent stake each in SC 56. —VS, GMANews.TV

http://www.gmanews.tv/story/192483/exxonmobil-to-drill-3rd-oil-well-in-south-sulu-sea



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2nd Palawan oil well tops forecast at 18,000 barrels :cheers:
Manila Standard Today - June 9, 2010

THE Tindalo-1 oil well in northwest Palawan is flowing at the rate of 18,689 barrels a day, surpassing pre-test expectations, the Australian firm Nido Petroleum said Tuesday.

The company was expecting the oil field to produce 7,000 to 15,000 barrels a day, but starting June 6 the field had been producing 15,000 barrels and was now gushing at varying rates, it said.

“The results from the stimulation and drill-stem testing program have exceeded my expectations,” Nido deputy managing director Joanne Williams said.

Nido, operator of service contract 54A covering the project, started the drill-stem testing on June 5. It has a 42.4-percent stake in the project, and its joint-venture partners are Kairiki Energy (30.1 percent), Trafigura Ventures III B.V. (15.1 percent), and TG World Energy Corp. (12.5 percent).

The Tindalo well flowed for 27 hours during testing, and it achieved a maximum flow rate of 18,689 barrels unassisted, the company said.

The oil produced during testing was processed on top of the drill rig and stored for later sale aboard the Tove Knutsen, rather than being flared or burned as was the usual practice, Nido said.

Several fluid and crude oil assay samples were taken from the well, which will be analyzed over the coming weeks.

“Preliminary analysis of oil quality indicates 27-degree API with no wax,” the company said.

“Extensive sampling of the oil is being undertaken for reservoir fluid characterization and crude marketing purposes.”

Nido discovered the oil field in October 2008, and the joint-venture partners then decided to proceed with well development in December 2009.

The company had previously estimated Tindalo’s recoverable volume at 1.5 million to 9.1 million barrels, and an average of 5.1 million barrels.

Nido president Emmanuel De Dios said the company would be using the money earned from the well to drill in Palawan’s other areas over the next 18 to 24 months. The company said it had identified over 20 prospects in shallow waters with an estimated potential for 200 million barrels.

“Tindalo is only one of several discoveries in Nido’s shallow water acreage, which have the potential to become significant cash generators,” De Dios said.

The Tindalo field is the second Filipino oil field to start production since the early 1990s—the other being the Galoc oil field that started producing in October 2008.

It was not immediately clear if Nido’s shares are now being traded in Australia. The company asked for a trading halt starting Friday last week until it had made an announcement on its well-testing. Alena Mae S. Flores

PCwUxPTojYU

^^ oh my!!

Chinese geologists start first RP geochem mapping
06/14/2010 | 05:03 PM

Surveyors from China are now in the Philippines to do the first in a series of geochemical mapping of copper and nickel deposits in the country.

“We’ve entered into an agreement with our Chinese counterpart for the conduct of a more scientific exploration. Whatever we will yield maybe used as initial data for the exploration of mining companies," said Edwin Domingo, director of the Mines and Geosciences Bureau.

Filipino geologists and engineers are now working with 12 of their Chinese counterparts for the mapping activity that will take three years to complete, according to a memorandum of agreement the MGB signed with China Geological Survey.

The project would focus on what had already been identified as possible nickel and copper deposits in the Visayas and Northern Mindanao, and would start in the provinces of Surigao and Agusan.

“Once we have identified areas with vast potential of mineral resource, it will be easy now to spur investments in the minerals industry," Domingo said.

Nickel and copper prices are expected to surge as economies recover from the global recession, fueling demand while stockpiles are declining across the globe, according to the MGB.

Nickel prices nosedived to $1.70 per pound last year, following sharp declines in the consumption of base metals. Prices started to rebound starting late last year. At present, nickel is trading at an average of $9.05 a pound.

Three-month copper on the London Metal Exchange gained up to 1.1 percent to $6,550 a metric ton. It was trading at $6,540 during the Monday’s morning session in Singapore, while copper for July-delivery was trading at $2.943 a pound.

China’s demand for the red metal remains strong as domestic inventories fell for six successive weeks to the lowest in nearly four months. —VS, GMANews.TV

http://www.gmanews.tv/story/193423/chinese-geologists-start-first-rp-geochem-mapping

http://i962.photobucket.com/albums/ae105/kerenskyalex/9gulf.jpg


http://i962.photobucket.com/albums/ae105/kerenskyalex/gulf-oil-spill-killing-wildlife-bro.jpg


http://i962.photobucket.com/albums/ae105/kerenskyalex/gulf-oil-spill-killing-wildlife-gul.jpg


You can see more at Jibrael Angel 2 Blog.

http://jibraelangel2blog.blogspot.com/2010/06/gulf-coast-oil-disaster.html

Ahh, heartbreaking photos. Eyes welling with tears now.

Hyundai completes test run of eco-friendly gas engine
MANILA, June 20 (PNA) - Ship and marine engine developer Hyundai Heavy Industries announced that it has finished testing the environment friendly HiMSEN gas engine H35G late this May.

The engine, which can be used for ship propulsion and power plants and features ‘Lean Burn’ technology, emits 20 percent less CO2 than diesel engines, reduces NOx emissions by 97 percent to reach world’s lowest level of 50ppm, and improves engine performance 47 percent.

Hyundai said this engine is also much lighter and more fuel efficient.

After the final endurance test, the company said it plans to start full-scale production of the new engines from early next year which will give the company full production capacity of 780bhp to 13,600bhp diesel and gas engines.

Hyundai Heavy Industries senior executive vice-president Yoo Seung-nam said the successful development of this high output gas engine will give the company a technological competitive edge to further expand in the world engine market.

With 35 percent of global engine market share, Hyundai Heavy reached an aggregate production of 20 million brake horse power in four-stroke engines in a world record time and expects to produce an aggregate 100 million brake horse power in two-stroke engine for the first time in the world by September this year. http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=282607

Contracts for oil, gas resources up for grabs
Energy execs push PECR to tap millions of barrels:cheers:

By Amy R. Remo
Philippine Daily Inquirer
First Posted 00:47:00 06/28/2010

Filed Under: Energy, Contracts, Oil & Gas - Upstream activities, Auctions
Most Read
CONTRACTS for the exploration and development of up to 10 prospective oil and gas areas in the country are expected to be auctioned off once the Department of Energy (DOE) gets a new man to steer its helm.

The DoE has already identified 16 prospective sedimentary basins which, according to reports, collectively hold 25 million barrels of oil, 2,135 billion cubic feet of gas and about 54 million barrels of condensate.

Energy officials refused to comment on the potential worth of the untapped resources, but one observer said that it could very well run into billions of dollars.

Energy Undersecretary Ramon Allan V. Oca said the petroleum sites being offered to investors are located within the Cagayan Valley Basin in the north, Agusan-Davao basin, Northwest Palawan Basin and the Sulu Sea Basin along the western flank of the archipelago.

“We’re still reviewing the sites. We’re still checking if these are within protected areas or sanctuaries to avoid (potential) environment issues,” said Oca, who explained that the DOE would coordinate its action with the Department of Environment and Natural Resources.

Oca said such steps would be necessary because it could prove difficult and costly for investors to stop their exploration activities once a site has been determined to be a protected area.

These prospective oil and gas areas, to be presented to the new energy secretary, will be offered under the Philippine Energy Contracting Round (PECR).

PECR is a public bidding round aimed at encouraging companies to invest in the country’s energy sector. These contracting rounds, which showcase potential areas for exploration and development in the country, are expected to spur investments and help cut costly oil imports.

But the planned PECR for petroleum has been pushed back several times due to transition problems, following the resignation early this year of former Energy Secretary Angelo T. Reyes.

The content of the untapped resources in the 16 sedimentary basins was culled from a study called Philippine Petroleum Resource Assessment, which was conducted in early 2000.

Energy to offer 10 new oil, gas exploration sites to investors
MANILA, June 27 (PNA) -- The Department of Energy (DOE) will open up at least nine to 10 new sites for oil and gas exploration under the administration of President-elect Benigno "Noynoy" Aquino III.

Energy Undersecretary Ramon S. Oca said the department was just finalizing the program for presentation to the incoming Energy Secretary next month.

"We will have to present that to the new Energy Secretary. I guess it might be too late to present it to Secretary Ibazeta," Oca told reporters.

He said the areas will include Palawan, Mindanao and also in Central Luzon.

"It's around 9 to 10 sites. We're still reviewing it," Oca said. "But we're still checking if there are protected areas in these sites. If there are protected areas or even sanctuaries, we will have to avoid them to avoid problems also, particularly bird and marine sanctuaries."

The new oil and gas sites are part of the 2010 Philippine Energy Contracting Round.

As of March, the government was able to bring in nearly US$ 500 million investments in oil and gas exploration.http://www.pna.gov.ph/index.php?idn=0&nid=3&rid=284082

CGA Mining encouraged by further gold mineralisation at Masbate

CGA Mining (ASX: CGX, TSX: CGA) has reported on the recently announced exploration program at the Masbate Gold Project in the Philippines with encouraging results encountering relatively wide intervals of mineralisation in areas outside the current inferred and indicated resource envelopes.

The Masbate Project is located on the island of Masbate approximately 350 kilometres south of the State capital, Manila.

CGA said the program is focussed on the upgrading of Inferred Resources, close to mine targets outside current resources and grass roots regional exploration.

Initially the exploration has been targeting both inferred extensions of the ore bodies and close to mine targets outside the current resource envelope.

Exploration drilling at Masbate during the June quarter has concentrated on two near mine zones, Boston-Porphyry and Blue Quartz.

The Boston-Porphyry area includes the Porphyry Vein System (this is a historic prospect name, and has no connotation of mineralisation style), which trends at a high angle (bearing 060o) to the broader trend of the main Masbate mineralization trend (~320o ).

Holes BNRC018, 019, 032 and 035 have returned intercepts below and along strike from historic drilling of the Porphyry prospect (all of which was shallow).

Hole BNRC026 was drilled to test for repetitions of the Main Masbate trend, although the geometry of the intercept 102-109m in this hole is not yet understood. Further results for the Boston-Porphyry area are pending.

The Blue Quartz area lies along strike from the historic Dabu-Panique underground workings, mined during the Atlas Consolidated era in the 1980s and 1990s. It is well outside the Masbate resource area, and within the northern boundary of recently-granted exploration permit EP-010-2010-V.

The drilling was to test below shallow drilling from the Atlas period, and was intended to confirm that mineralisation continued to depth. Intersections of interesting width have been returned, and suggest potential for a pittable resource.

Follow up drilling is planned for both areas.

Drilling at the Capsay-Old Lady prospect, about 1,100 metres south east of Blue Quartz, is expected to commence in the coming week.

Michael Carrick, president and CEO, said given the encouraging results identified to date, the program will be further intensified as new targets are identified, to aggressively pursue extentions to both reserves and resources.
http://www.proactiveinvestors.com.au/companies/news/8312/cga-mining-encouraged-by-further-gold-mineralisation-at-masbate-8312.html

Energy to offer 10 new oil, gas exploration sites to investors
http://www.pna.gov.ph/index.php?idn=0&nid=3&rid=284082
I do really hope that the philippines will use that money for paying back their debts!!!not again for "good living" at the president`s malacanang palace (corruption).

Energy stops sale of Malampaya asset
07/05/2010 | 05:04 PM


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The sale of government's 10 percent stake in the Malampaya-gas-to-power project was put on hold until the administration of President Benigno S. Aquino III could decide whether to sell the asset, a Cabinet official said Monday.

Energy Secretary Jose Rene Almendras told reporters that the sale did not push through because the new board of PNOC Exploration Corp. was not able decision on how to move forward with the sale.

"So the guidance from me is, let's resolve the board issue and maybe even study how the Malampaya approach is going to be. Even ask the question: Do you really want to sell Malampaya if it's generating revenue today?," Almendras said

Government may still pursue the privatization of PNOC Exploration's stake in Malampaya if the asset will fetch a good price, according to him.

The Arroyo administration had hoped to privatize the Malampaya asset for P16 billion to help reduce the budget deficit.

"The finance side of me is saying, I have no problem in selling it if you're going to pay me a premium over the net present value of all the future cash flow that would be gained by government. We're going to study it, and we're going to understand it," Almendras said.

Almendras said he discussed the Malampaya asset with Finance Secretary Cesar Purisima during the Cabinet meeting last week.

"It's not about putting it on hold, it's about looking for the best possible interest to the government. We're not saying it will not be sold, maybe it will be for the right value or the pay to the government would be substantial enough," the new energy chief said.

Government makes P490M from Galoc oil production
07/06/2010 | 03:58 PM


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The Philippine government made P490 million from the Galoc oil field in northwest Palawan in the 12 months to June 2010, an Energy official said Tuesday.

It is now up to the national and local governments on how the money from the Galoc field’s production – since it was declared commercially viable in June 2009 – shall be divided, Energy Undersecretary Ramon Oca told reporters in an interview.

The Galoc field has produced over four million barrels of oil since October 2008 when the consortium, led by Galoc Production Co., started pumping oil from the well. The field now produces 8,600 barrels per day.

The consortium is studying the possibility of drilling two more wells to discover additional reserves, and increase Galoc’s output by 4,000 bpd to 12,600, and production reserves by five million barrels to 15 million.

While Galoc Production holds a 50 percent stake in service contract 14C, which covers the Galoc field, Australia’s Otto Energy Ltd. and the Vitol Group hold the rights to the field's production.

"The field continues to produce in line with expectations and Otto is working with the operator to continue to improve the facility performance and plan for appraisal and development of the remainder of the field," Otto Energy said.

The other stakeholders in SC 14C are Nido Petroleum Ltd. (22.28 percent), Oriental Petroleum & Minerals Corp., and Linapacan Oil Gas & Power Corp. (7.57 percent each), Philodrill Corp. (7.03 percent), Forum Energy Corp. (2.27 percent), Alcorn Gold (1.53 percent), and PetroEnergy (1.03 percent). —VS, GMANews.TV

bigyan dapat ang palawan....para lalo pang umasenso ang bayan na yan....

Good day! Can anybody help me get the coordinates of the malampaya platform? Iwould need it for a report. I got coordinates from wikimaps but I can't verify it's validity. Can anybody help me out? Thanks!

http://i962.photobucket.com/albums/ae105/kerenskyalex/9gulf.jpg


http://i962.photobucket.com/albums/ae105/kerenskyalex/gulf-oil-spill-killing-wildlife-bro.jpg


http://i962.photobucket.com/albums/ae105/kerenskyalex/gulf-oil-spill-killing-wildlife-gul.jpg


You can see more at Jibrael Angel 2 Blog.

http://jibraelangel2blog.blogspot.com/2010/06/gulf-coast-oil-disaster.html
:ohno:

Good day! Can anybody help me get the coordinates of the malampaya platform? Iwould need it for a report. I got coordinates from wikimaps but I can't verify it's validity. Can anybody help me out? Thanks!

http://i828.photobucket.com/albums/zz203/crisostomosantos33/HondaBayandPalawan.jpg


I wish I can give you the exact coordinates of Malampaya Oilfield however my chart/ map is in the province while I am here in Manila
till for another week owing I am taking up a maritime course from IMO.

In the meantime, you can print the below scan image of Palawan chart then by using a protractor you can measure the Latitude from the Latitude scale on the side, and the Longitude on the longitude scale on top of the image.

Kepco in talks with SMC for Ilijan expansion

By Amy R. Remo
Philippine Daily Inquirer
First Posted 00:22:00 07/01/2010

KOREA ELECTRIC POWER CORP. IS in talks with diversifying conglomerate San Miguel Corp. for its plan to expand the 1,200-megawatt (MW) Ilijan natural gas facility in Batangas, by another 300 MW.

“We are coordinating and planning with the new independent power producer administrator (IPPA), which is San Miguel,” said Kepco Philippines president and chief executive Bok-Yull Lee.

Lee also told the Inquirer that San Miguel, through energy arm San Miguel Energy Corp. (SMEC), took over the management of the government’s contracted capacity in Ilijan on June 26.

In April, SMEC submitted the highest bid of $870 million for the IPPA contract of the Ilijan gas facility in an auction held by Power Sector Assets and Liabilities Management Corp. The management of the contracted capacity was turned over by the government to SMEC, upon its first monthly payment.

Kepco, however, will remain the operator of the Ilijan facility under a build-operate-transfer contract that will expire in 2022. The facility, which was completed in 2002, draws natural gas from Shell Exploration BV’s Malampaya deep water gas-to-power project. It also has a take-or-pay contract with its gas suppliers.

According to Lee, the company is still working on securing the supply of natural gas for the planned expansion in capacity.

“We want to tap the extra 300 MW of natural gas from Malampaya,” Lee said.

Since last year, Kepco and other interested parties have been eyeing the 300 MW in excess capacity from the Malampaya project. The other companies are Chevron Philippines, PNOC-Exploration Corp., Singapore-Based Callandra LCNG Fuels Corp. and the Lopez-led First Gen Corp.

The bidding for this capacity was held in 2009 and the awarding of the deal was expected early this year. The bidding, however, had failed, according to Lee.

Lee said that should Shell Philippines Exploration BV—operator of the Malampaya field—hold another bidding, Kepco would likely bid for the excess capacity.

With an estimated capacity to power up to 3,000 MW within a 25-year period, the $4.5-billion Malampaya deep water gas-to-power project supplies natural gas to the Ilijan plant of Kepco and to the 1,000-MW Sta. Rita and 500-MW San Lorenzo plants of First Gas Corp.

The gas field is 2,788 feet deep in the waters of Palawan, with the natural gas being pumped out to a processing plant and transported by tankers to Batangas.

http://business.inquirer.net/money/topstories/view/20100701-278511/Kepco-in-talks-with-SMC-for-Ilijan-expansion

Toledo paves way for strategic alliance with China's Jinchuan in Philippines
By BFN News | 07:34 AM | Monday 12 July, 2010

* Factsheet Toledo Mining Ord 5p (TMC)


Toledo Mining Corporation Plc has signed a memorandum of understanding with China's biggest nickel producer that should lead to a strategic alliance for the exploration, mining, processing and sale of nickel products from Toledo's nickel interests on Palawan Island, the Philippines.

Under the MOU, Jinchuan Group Ltd will subscribe for new Toledo ordinary shares representing 29.9% of its enlarged issued share capital. Jinchuan will pay 42 pence per share, raising over £7.4m ($11.2m). Jinchuan will also enter into a direct ore shipping sales contract to buy at least 1Mtpa of nickel ore from 2013, increasing to at least Mtpa in 2016. The Chinese firm will provide a pre-payment purchase facility to assist with working capital associated with the fulfilment of these contracts. It will also assume management of Toledo's Philippines interests and will nominate two directors to Toledo's board. Toledo meanwhile will win the right to co-invest in Jinchuan's planned ferro-nickel smelter in China's Guangxi Province. The two companies hope to turn the MOU into a legally binding deal by the end of August, with shareholder approval being sought shortly afterwards. Story provided by StockMarketWire.com
http://www.investegate.co.uk/InvArticle.aspx?id=90665

Philippines Petron wants foreign capital, expertise

Tue, Jul 6 2010
Stocks

Petron Corporation
PCOR.PS
Php6.60
+0.00+0.00%
11:09am GMT+0800

PTT Public Company Limited
PTT.BK
248.00฿
+0.00+0.00%
2:43pm GMT+0800

MANILA | Mon Jul 12, 2010 3:17am EDT

MANILA July 12 (Reuters) - Petron Corp (PCOR.PS), the Philippines biggest oil refiner, is looking for a foreign investor to bring in $1 billion in capital and technical expertise, chairman Ramon Ang said on Monday.

Petron had increased the size of its board to 15 members from 10, creating space to bring in foreign partners, Ang said. Earlier at the company's annual meeting of shareholders, Ang said the chairman or president of Thailand's PTT (PTT.BK) might sit on the board.

He later told reporters PTT, Thailand's biggest energy firm, was one of many companies Petron was talking to. (Reporting by Rosemarie Francisco; Editing by John Mair)
http://www.reuters.com/article/idUSMNB00267220100712?rpc=401&feedType=RSS&feedName=hotStocksNews&rpc=401

Petron on the lookout for foreign partners to expand refinery business
Companies
Written by Paul Anthony A. Isla / Reporter
Monday, 12 July 2010 19:55

PETRON Corp. is hoping to raise as much as $1 billion by offering as much as 40 percent of its total shares to a foreign investor willing to help them expand their refinery business, Ramon Ang, company chairman and chief executive, told reporters on Monday.

In an ambush interview, Ang said his company is still in talks with quite a number of foreign companies. “We’re talking with a lot of companies. In large, we can offer 40 percent to the new investor. If we can invite foreign investors, we can offer as much as 40 percent to them, in expanding our refinery,” he said at the sidelines of Petron’s stockholders’ meeting.

Ang said talks are ongoing and that they still cannot tell when they will finalize a possible partnership.

He also begged off to disclose how many companies they are in talks with.

In a separate interview, Eric Recto, Petron president, said the company will need at least $1.6 billion in pursuing the second phase of the refinery master plan. The said master plan is targeted to help Petron expand its petrochemical capabilities.

In Petron’s plan to partner with a foreign company, Recto also explained there would be no investor group which can accommodate $1 billion of new capital. “In other words, it makes sense for the company to go out and look for someone who could provide value not just capital,” he added.

Recto also noted that PTT Plc. of Thailand is helping Petron in turning its petrochemical company around. “Petrocorp has been the right object at the wrong time. And right now I think we found a very good opportunity,” he said.

Recto said he thinks PTT is interested in a regional expansion idea.

In another development, Petron said it has acquired a 40-percent stake in Petrochemical Asia (HK) Ltd., owner of the Philippine Polypropylene Inc. (PPI) with an option to increase its stake up to 51 percent as it plans to further diversify into petrochemicals and add more revenue streams.

PPI owns a polypropylene plant in Mariveles, Bataan which has the capacity to produce up to 160,000 metric tons of polypropylene annually and expandable to 225,000 metric tons. Its raw material will come from Petron’s 180,000 barrel-per-day refinery, which is a few kilometers away. The facility can produce 140,000 metric tons of propylene yearly.

With the acquisition of the polypropylene plant, Petron said it will have its share of the incremental value derived from converting propylene into polypropylene resin.

“This strategic acquisition gives us a unique opportunity to further integrate our petrochemicals business and substantially add to our bottom line. It also gives us an excellent platform for future growth into this high-margin industry over the long term,” Ang said.

Petron also said it has entered into a technical services agreement during the rehabilitation, commissioning and start-up of the polypropylene plant with Integrated Refinery and Petrochemical Co. Public Ltd. (IRPC), an affiliate of PTT.

IRPC owns and operates the largest integrated petrochemicals complex in Southeast Asia and has several downstream plants that produce olefins, aromatics, polymers and polyols. Among its many facilities, IRPC has a polypropylene plant with the same configuration and process technology.

^^
Petron mulls tieup with PTT for $1.2-billion refinery upgrade (http://www.philstar.com/Article.aspx?articleId=592703&publicationSubCategoryId=66)
By Donnabelle L. Gatdula (The Philippine Star) Updated July 13, 2010 12:00 AM


MANILA, Philippines - Petron Corp., the country’s largest oil refiner, is looking at the possibility of forging a partnership with PTT of Thailand for the second phase of a $1.2-billion refinery upgrade to include its expansion into the petrochemical business.

“We’re still talking with PTT for petrochemicals. Yes, they’re complementary to our other by-products like propylene,” Ramon Ang, Petron chairman and CEO, told reporters on the sidelines of the company’s stockholders’ meeting.

Petron to raise $1.6B for refinery upgrade

BY JOHN POQUIZ
Malaya Business Insights
July 13, 2010

Petron Corp., the country’s largest oil distributor and refiner, yesterday said that it is in talks with foreign firms to raise $1 billion to $1.6 billion to expand its petrochemical line at the Bataan refinery.

At the sidelines of Petron’s annual stockholder’s meeting, Petron president Eric Recto said the expansion is designed to serve growing markets in India and China.

"That is a rough estimate of the capital that we will need to be able to build what we call the refinery master plan phase 2. Usually there is a phase 3 and phase 4 but we’re talking about phase 2 in general which is in simple terms the expansion of our petrochemical capabilities," Recto said.

Recto said it is highly unlikely that the company can raise the money from the local capital market.

"I doubt that there would be a (local) investor group who can accommodate a billion dollars of new capital. It also makes sense for us to go out and look for someone who could provide value not just capital," he said.

"Capital is one thing and value another. We’re looking for people with the financial muscle and technical capability to help us. There are experts out there who have been doing this a lot longer than we have," he added.

Ramon Ang, Petron’s chairman and CEO, said the company is considering PTT, Thailand’s largest oil distributor and refiner, as one of partners for its petrochemical business expansion.

Ang said Petron may offer either 40 percent of it total shares or 40 percent of a new joint venture company that could be formed.

"We’re still talking with PTT for our petrochemicals Yes, they’re complementary for our other by-products like propylene. We’re talking with a lot of companies," he said.

"We still cannot tell when we will finalize things. I also cannot tell how many companies we are in talks with," he added.

Recto said that it was PTT which expressed interest in investing in Petron. He said the interest of PTT is in line with the company’s plan to expand in the Asian region.

In a disclosure yesterday, Petron said that it has acquired a 40 percent stake in Petrochemical Asia (HK) Ltd., owner of Philippine Polypropylene Inc. (PPI), with an option to increase its stake up to 51 percent.

PPI owns a polypropylene (PP) plant located in Mariveles, Bataan.

The PP plant has a capacity of 160,000 metric tons of polypropylene annually, expandable to 225,000 MT. Its raw material will come from Petron’s 180,000 barrel-per-day refinery a few kilometers away which can produce 140,000 metric tons of propylene yearly. With a stake in the PP plant, Petron said it will have its share of the incremental value derived from converting propylene into polypropylene resin.

Polypropylene is a thermoplastic polymer used in a wide variety of applications, including food packaging, rope, sacks, plastic parts and reusable containers. At current international prices, polypropylene is about $200/MT more valuable than propylene.

"This strategic acquisition gives us a unique opportunity to further integrate our petrochemicals business and substantially add to our bottom line. It likewise gives us an excellent platform for future growth into this high-margin industry over the long-term," Ang said.

Petron also said that PPI has entered into a technical services agreement during the rehabilitation, commissioning and start-up of the PP plant with Integrated Refinery and Petrochemical Co. (IRPC), an affiliate of PTT of Thailand.

IRPC owns and operates the largest integrated petrochemical complex in Southeast Asia and has several downstream plants which produce olefins, aromatics, polymers and polyols.

DMCI Power to pursue expansion of 600-megawatt Calaca coal facility
By Donnabelle L. Gatdula (The Philippine Star) Updated July 13, 2010 12:00 AM

MANILA, Philippines - DMCI Power Corp., the power generation arm of the Consunji family, will pursue plans to expand the capacity of the 600-megawatt (MW) Calaca coal-fired power facility.

DMCI Power president Nestor Dadivas said they are now finalizing the investment program for the expansion of the coal-run power plant.

The DMCI official, however, said the amount they would invest would greatly hinge on the power situation in Luzon.

“We are studying the power demand and supply situation in Luzon,” he said.

On top of the planned expansion program, DMCI Power is also in the midst of rehabilitating the Calaca power plant to increase its capacity by an additional 130 MW.

Earlier, the power firm said it would set aside some $60 million for the rehab program.

Dadivas said the ongoing rehabilitation is expected to be completed by February 2011.

Based on the rehab plan, the company would jack up the capacity of the Calaca power facility to 470 MW from the current 340 MW.

According to Dadivas, the two units of the Calaca power facility are currently running at a combined capacity of only around 350 MW. He also noted that the two units are sometimes not capable of running at the same time.

At present, the Calaca facility consists of two 300-MW generating units and is primarily designed to run as a base-load plant.

It is also designed to utilize local coal from Semirara Mining Corp., a subsidiary of DMCI Holdings.

In July 2009, DMCI Holdings Corp., the parent firm of DMCI Power, won the Calaca plant in a bidding with an offer price of $361.7 million.

DMCI Power’s investment in Calaca is strategic as DMCI Holdings owns 56 percent of Semirara, which has exclusive rights to explore, mine and develop the coal resources on Semirara Island in Caluya, Antique.

Aside from mining DMCI Holdings is also into the construction business, running the construction component companies, and related interests of the Consunji family. Its core businesses include construction, real estate and coal mining.

Big 3 mull relocating oil depot to North Harbor
By Zinnia B. Dela Peña (The Philippine Star) Updated July 13, 2010 12:00 AM

MANILA, Philippines - The three major oil giants — Petron Corp., Pilipinas Shell and Chevron Philippines — may maintain a single location at the Manila North Harbor to replace its facilities at the Pandacan oil depot.

San Miguel Corp. president and chief operating officer Ramon S. Ang said discussions are now ongoing among Shell, Petron and Chevron to relocate to the Manila North Harbor, whose offshore areas provide the ideal location for a tank farm that will replace the Pandacan oil depot.

Petron, controlled by the San Miguel-Ashmore Group, earlier expressed interest to invest in Manila North Harbor following San Miguel’s decision to build a new grains terminal through a partnership with the Romero family, which controls the company that was awarded a 25-year concession to operate and redevelop the country’s busiest domestic cargo port.

San Miguel is in the final stages of negotiations with the Romero family to invest in Manila North Harbour Port, Inc. The diversifying conglomerate plans to build a new grains terminal in North Harbor to service the needs of San Miguel’s food and beverage businesses.

Ang said San Miguel does not intend to be involved in the actual port operations as that remains the expertise and responsibility of the Romeros.

The Pandacan oil depot supplies around half of the country’s total fuel demand and 100 percent of lubricant requirements. Industry data shows that more than 1,800 retail stations in Regions I to IV, around 500 of which are in Metro Manila, get their fuel supply from the facility.

San Miguel in April initiated a tender offer on 884 million common shares held by the public in Petron or equivalent to 9.4 percent for P6.85 per share. Petron shareholders, however, sold just 184.7 million shares or equivalent to P 1.27 billion at the end of the tender offer in a block sale at the Philippine Stock Exchange.

San Miguel prior to the tender offer acquired 20 percent of Petron by exercising its option to buy 40 percent of the holdings of SEA Refinery Holdings BV for P 6.85 per share. Sea Refinery held about 50.1 percent of Petron.

It paid $10 million early last year to acquire an exclusive option to buy into SEA Refinery, a unit of British investment firm Ashmore Group (ASHM.L).

The Ashmore Group, which holds a 40.5-percent stake in Petron through its wholly-owned unit SEA BV, has agreed not to participate in the tender offer.

Big 3 mull relocating oil depot to North Harbor
By Zinnia B. Dela Peña (The Philippine Star) Updated July 13, 2010 12:00 AM

MANILA, Philippines - The three major oil giants — Petron Corp., Pilipinas Shell and Chevron Philippines — may maintain a single location at the Manila North Harbor to replace its facilities at the Pandacan oil depot.

San Miguel Corp. president and chief operating officer Ramon S. Ang said discussions are now ongoing among Shell, Petron and Chevron to relocate to the Manila North Harbor, whose offshore areas provide the ideal location for a tank farm that will replace the Pandacan oil depot.

Petron, controlled by the San Miguel-Ashmore Group, earlier expressed interest to invest in Manila North Harbor following San Miguel’s decision to build a new grains terminal through a partnership with the Romero family, which controls the company that was awarded a 25-year concession to operate and redevelop the country’s busiest domestic cargo port.

San Miguel is in the final stages of negotiations with the Romero family to invest in Manila North Harbour Port, Inc. The diversifying conglomerate plans to build a new grains terminal in North Harbor to service the needs of San Miguel’s food and beverage businesses.

Ang said San Miguel does not intend to be involved in the actual port operations as that remains the expertise and responsibility of the Romeros.

The Pandacan oil depot supplies around half of the country’s total fuel demand and 100 percent of lubricant requirements. Industry data shows that more than 1,800 retail stations in Regions I to IV, around 500 of which are in Metro Manila, get their fuel supply from the facility.

San Miguel in April initiated a tender offer on 884 million common shares held by the public in Petron or equivalent to 9.4 percent for P6.85 per share. Petron shareholders, however, sold just 184.7 million shares or equivalent to P 1.27 billion at the end of the tender offer in a block sale at the Philippine Stock Exchange.

San Miguel prior to the tender offer acquired 20 percent of Petron by exercising its option to buy 40 percent of the holdings of SEA Refinery Holdings BV for P 6.85 per share. Sea Refinery held about 50.1 percent of Petron.

It paid $10 million early last year to acquire an exclusive option to buy into SEA Refinery, a unit of British investment firm Ashmore Group (ASHM.L).

The Ashmore Group, which holds a 40.5-percent stake in Petron through its wholly-owned unit SEA BV, has agreed not to participate in the tender offer.

good....

^^ As per the Railroad thread here, Robredo plans to finally relocate those pesky squatters somewhere else.

Petron scales up Singapore petrochemical trading hub as next revenue stream source

By MYRNA M. VELASCO
July 13, 2010, 4:55pm
Manila BUlletin

With perceptions that petrochemicals will be the next sector presenting “golden opportunities,” Petron Corporation is scaling up plans for its proposed trading hub in Singapore to maximize revenue streams.

“The petrochemical business is something we need to build up on and I’m hoping that it will become substantial contributor, as our refinery,” Petron president Eric O. Recto told reporters. He qualified though that the way forward for the company will still be mainly refinery, but giving due importance to the growing petrochemicals segment of the business.

He said it will be more valuable for Petron to be running its own trading hub in the region’s ‘‘buy-and-sell center’’ for oil products, so it can better manage its sales, hence, shoring up revenue potential for the company.

“It will bring value to the company. We will be more active in the market. We’ll know what the pricing really is, instead of just relying on what just the trader says,” he said.

Recto added “we don’t want to rely on the traditional trading houses, so we’re putting up our own,” noting that the oil firm also plans to deploy its own people in Singapore to further build up on their skills.

“Trading is a skill that we already have because we purchase and sell our products but not done through a trading company, so we have a skill. Trading is also a skill that can be bought, so we plan to build our own capabilities through our own internal talents plus augment that with external know-how,” Recto noted.

The country’s leading oil firm currently sees better margins by broadening the petrochemical base of its business, noting that the production of white products from its refinery facility in Bataan does not put them much on the positive side of things, revenue-wise.

Recto enthused that with their foray into petrochemicals, “it gives us more options as compared to what we have today where we’re forced to produce whites; and whatever we can’t sell locally, we have to export normally at a loss.”

Beyond output from its Limay refinery in Bataan, Petron is also counting on increased production from its acquisition of another petrochemical facility in Mariveles; which enables it to produce of 225,000 metric tons of polypropylene, or thermoplastic polymer used in wide variety of applications such as food packaging, plastics and containers, among others.

He further noted that the beauty of integrating petrochemicals-producing units in a refinery business lies on having the ability to shift production depending on which ones would be yielding better margins.

“There’s a differential between white and petrochemicals – if you would be able to feed the whites in the local market, we can produce more whites; and just keep the petrochemical feed to minimum. If the opportunity to sell petrochemical makes more margin, then we can take advantage of that,” he noted.

Big 3 mull relocating oil depot to North Harbor
By Zinnia B. Dela Peña (The Philippine Star) Updated July 13, 2010 12:00 AM

MANILA, Philippines - The three major oil giants — Petron Corp., Pilipinas Shell and Chevron Philippines — may maintain a single location at the Manila North Harbor to replace its facilities at the Pandacan oil depot.



Good for Manila and the Pasig River...

^^ Here's goes again the bishop after making headline noise against population control, Pagcor and now this time mining industry.....

CBCP asks Aquino to repeal Mining Act :bash:

By Kristine L. Alave
Philippine Daily Inquirer
First Posted 13:27:00 07/16/2010

MANILA, Philippines – The influential Catholic Bishops' Conference of the Philippines is urging President Benigno Aquino III to review the government’s policy on mining and the “anomalous” contracts forged by the Arroyo administration with mining companies.

In a letter signed by CBCP president Bishop Nereo Odchimar and sent to Aquino Friday morning, the CBCP said the Mining Act should be repealed, noting that it only opens the country's natural resources to exploitation by foreigners.

“The CBCP calls for changing the way we manage and develop our natural resources. Our bias for the use of our resources should be for Filipinos and not for foreigners,” the CBCP said.

“Furthermore, we call for review of all anomalous and controversial mining contracts. We cannot move forward if we fail to rectify previous contentious contracts the state has entered into with mining investors,” the letter added.

The clerical group also appealed to the President to make public mining applications and contracts, which have been held in secrecy, in accordance with Aquino's stance for transparency.

The CBCP's letter came a week after its representatives met with newly installed Environment Secretary Ramon Paje. Paje said he favored the repeal of the Mining Act and a review of the government's mining policies.

^^ Mukhang di gustong umunlad ng mga pari na iyan ang Pilipinas ah...

Polyard prepares for exploratory gas drilling in CLuzon

07/16/2010
http://www.gmanews.tv/story/196262/polyard-prepares-for-exploratory-gas-drilling-in-cluzon

Share Macau-based Polyard Petroleum International Co. Ltd., operator of the Central Luzon Gas Project, will start preparations for exploratory drilling in Central Luzon by the third quarter.

"Preparation work for drilling will be undertaken in the third quarter," company documents showed Friday.
"Exploration programs of the gas project have proceeded as planned. Re-interpretation of seismic data and prospect evaluation will be carried out," it said.

The Department of Energy (DOE) awarded service contact 70 to Polyard Petroleum in 2008, which includes Area 2. The contract covers 6,840 sq km in the Central Luzon Basin.

Since the 1950s, exploration activities have been conducted in Central Luzon Basin and some wells were drilled in this basin between 1950 and 1960, thirteen of which were located in Area 2.

Polyard Petroleum, formerly Kanstar Environmental Technology Holdings, said the DOE granted the company an extension of its exploration period to "guarantee sufficient time for comprehensive analysis of the basin and determination of the location of the first exploratory well."

The department expects a total projected investment of $7.2 million for the seven-year petroleum exploration contract.

Polyard Petroleum experts earlier said they are still determining exact reserves in the area but it could contain around 1.7 billion cubic meters of gas.

Polyard is engaged in overseas petroleum exploration and development. It established Chinaoil USA (Macao) Co. Ltd. as a joint venture with Petrochina in 2005. The company has bagged exploration rights in Brunei.
"We are very interested in investment opportunities in the Philippines," Lam Nam, president and chairman of Polyard Petroleum, said earlier.

Aside from Polyard Petroleum holding 89 percent, other members of the consortium are East Sun Mining and Power Exploration Co. and Cenozoil Energy. —JE/OMG, GMANews.TV

Shell, Chevron keen on RP's likely biggest oil find
abs-cbnNEWS.com
Posted at 07/18/2010 1:34 PM | Updated as of 07/18/2010 1:34 PM

MANILA, Philippines - Shell Philippines Exploration BV (Spex) and Chevron Malampaya LLC, operators of the $4.5 billion Malampaya deep water gas to power project, are eyeing a farm-in venture for the Gindara block oil prospect in northwest Palawan, potentially the next biggest oil find in the country.

Spex and Chevron hold 45% each in the Malampaya project near the Gindara block. The Malampaya project has an estimated recoverable reserve of about 600 million barrels of oil.

A report by Southern Cross Equities, commissioned by Kairiki Energy Ltd. to study its ongoing proejcts, showed that the Gindara block or SC 54B consortium composed of Kairiki which has a 40% stake, and Nido Petroleum Ltd. with 60% interest, are in talks for a possible partnership with Spex and Chevron.

"We understand that negotiations have been ongoing for some time with neither side agreeing to terms," Southern Cross said.

Southern Cross did not reveal the parties the consortium is negotiating with, but industry officials have confirmed Spex and Chevron are among those keen on signing a farm-in agreement with the Gindara block developers.

The development of the Gindara prospects requires a hefty capital of $30 million.

Southern Cross said the Gindara consortium should spread out risks by tapping partners for the oil prospect.

"Nido and Kairiki have the option to drill the Gindara prospect on their own which would mean higher risk approach but also provide much higher reward," said Southern Cross.

Previously, Nido head of exploration Jon Pattillo said the Gindara block may be the highest ranked drilling candidate in Nido’s Northwest Palawan exploration portfolio "in terms of its excellent risk profile and potential significance to the company."

"The prospect is comparable in scale to Shell’s Malampaya field, 30 kilometers to the north, but located in only 320 meters of water and close to the joint ventures recent discoveries at Tindalo and Yakal in adjacent SC 54 Block A," he said.

The consortium plans to begin its exploration drilling program in 2011.

^^ Here's goes again the bishop after making headline noise against population control, Pagcor and now this time mining industry.....

CBCP asks Aquino to repeal Mining Act :bash:

By Kristine L. Alave
Philippine Daily Inquirer
First Posted 13:27:00 07/16/2010

MANILA, Philippines – The influential Catholic Bishops' Conference of the Philippines is urging President Benigno Aquino III to review the government’s policy on mining and the “anomalous” contracts forged by the Arroyo administration with mining companies.

In a letter signed by CBCP president Bishop Nereo Odchimar and sent to Aquino Friday morning, the CBCP said the Mining Act should be repealed, noting that it only opens the country's natural resources to exploitation by foreigners.

“The CBCP calls for changing the way we manage and develop our natural resources. Our bias for the use of our resources should be for Filipinos and not for foreigners,” the CBCP said.

“Furthermore, we call for review of all anomalous and controversial mining contracts. We cannot move forward if we fail to rectify previous contentious contracts the state has entered into with mining investors,” the letter added.

The clerical group also appealed to the President to make public mining applications and contracts, which have been held in secrecy, in accordance with Aquino's stance for transparency.

The CBCP's letter came a week after its representatives met with newly installed Environment Secretary Ramon Paje. Paje said he favored the repeal of the Mining Act and a review of the government's mining policies.


Mga demonyong pari yan hadlang talaga sa pag unlad :bash: :bash:

To those priests who object responsible mining, you deserve :bash::bash::bash:

Mining industry scores Church’s ‘extremist view’


Tuesday, 20 July 2010 00:00

BY JAMES KONSTANTIN GALVEZ REPORTER

The Chamber of Mines of the Philippines (CMP) on Monday scored the Catholic Church for its “extremist view” against the exploitation and development of the country’s natural resources. In a statement, Nelia Halcon, the executive vice president Chamber of Mines, expressed disappointment over the letter of the Catholic Bishops’ Conference of the Philippines (CBCP) to President Benigno Aquino 3rd calling for the abolition of the Mining Act.

“It is distressing that the Philippines is the only country in the world where the Catholic Church is against the development of the God-given natural resources,” she added.

Halcon said that the Philippines is now lagging behind other Catholic countries in the development of its indigenous mineral resources, saying that it is only now that the country was able to sustain the industry’s growth momentum.

The mining chamber noted that Catholic countries like Chile, the largest producer of copper, exports about $29.9-billion worth of copper while Peru earns about $15.9 billion from its silver exports.

Brazil, one of the biggest producers of iron ore, exports about $40.1-billion worth of the minerals.

In the Philippines, the mining industry’s contribution to the gross domestic product (GDP) has reached 1.3 percent while exports have been recorded at only $1.6 billion.

GDP represents the amount of goods and services produced locally, and is a proxy for a country’s economic performance.

Enticing investors
Halcon said that since 2005, when uncertainties about the Mining Law were finally resolved, the mining industry enticed investors to take a second look at the opportunities in the industry and the revitalization efforts made by both the government and the private sector.

In 2009, the mining industry became a star performer for registering about 23 percent in growth even with the financial meltdown that affected the other sectors of the economy.

Capital investments of $3 billion have been made since 2004 and another $1 billion is expected within 2010.

“Mining generates income and employment for the community and with its multiplier effects, creates even greater economic value for society,” Halcon said.

“While CBCP has been supporting small-scale mining which is unregulated, has problems on environmental protection measures and does not contribute to government’s tax revenues,” she added.

On Friday, the CBCP sent a letter to President Aquino urging him to repeal the Mining Act contending it opens the country’s natural resources to exploitation by foreigners.

“Our bias for the use of our resources should be for Filipinos and not for foreigners,” the CBCP said in its letter.

The Catholic Church also called for a review of the government’s policy on mining and the allegedly “anomalous” contracts forged by the Arroyo administration with mining companies.

The CBCP further said that the government should make public all mining applications and contracts, which have been held in secrecy, in accordance with the President’s stance for transparency.
http://www.manilatimes.net/index.php/top-stories/21899-mining-industry-scores-churchs-extremist-view

Mining sector scores bishops for anti-development stand
By Evelyn Z. Macairan (The Philippine Star) Updated July 21, 2010 12:00 AM

MANILA, Philippines – The mining industry accused yesterday the Catholic Bishops’ Conference of the Philippines (CBCP) as being against the development of the country’s God-given natural resources after the prelates asked President Aquino to put an end to large-scale mining.

In a one-page statement, the Chamber of Mines of the Philippines (CMP) said the CBCP’s appeal to stop the large-scale mining business in the country “points to the extremist view of the Catholic Church against developing the country’s God-given natural resources for the benefit of the people.”

“It is distressing that the Philippines is the only country in the world where the Catholic Church is against the development of God-given natural resources,” an industry official said.

The group cited Catholic countries that are benefiting from mining operations. Chile, the largest producer of copper, exports $29.9 billion of copper; Peru earns about $15.9 billion from its silver exports; and Brazil, one of the biggest producers of iron ore exports about $40.1 billion worth of the mineral.

These countries reportedly did not have to deal with strong opposition from the Catholic Church.

In the case of the Philippines, it has yet to develop its indigenous mineral resources and in recent years, it has sustained the industry’s growth momentum. The gross domestic product (GDP) contribution has reached 1.3 percent while exports have been recorded at $1.6 billion.

Capital investments of $3 billion have been made since 2004 and another $1 billion is expected within 2010.

The chamber also argued that mining generates income and employment for the community and with its multiplier effect, creates even greater economic value for society.

The CBCP supports small-scale mining, which is unregulated, the chamber said. They also do not contribute to the government’s tax revenue generation.

“Those conspiring to create uncertainties in the country’s investment environment are undermining the current administration’s efforts in promoting investments and placing its economic development plan in an untenable position,” the chamber said.

They reminded President Aquino that in his inaugural speech last June 30, he said that the country is ready to take its place as a member of the community of nations and that he would harmonize the nation’s interest with its international responsibilities.

The Philippines, he added, “will be a predictable and consistent place for investment, a nation where everyone will say ‘it all works’.”

Last July 16, the CBCP sent a letter to President Aquino in which they reiterated their appeal that the government put an end to large-scale mining. The letter was sent two weeks before the President is to deliver his first State of the Nation Address (SONA).

Mga kampon ata ni Satanas mga pari natin dito.

Mining, mainly small-scale mining played a prominent role in the archipelago before the colonial era. It has been in the Philippines for CENTURIES. Based on my personal observation, whether physically or distantly, the church is against every type of progress or advancement known to men. It's time we Filipinos get rid of this cancer.

I am all for equitable distribution of national wealth, universal healthcare and other social democratic endeavours but to eliminate mining activity is to deny opportunity to many who have no jobs. Mining, if done properly, can bring about a decent livelihood to people who really need it.

Nido to sell Tindalo crude next August
07/21/2010 | 08:36 PM



Australia’s Nido Petroleum Ltd., operator of the Tindalo oil field in northwest Palawan, is looking forward to sell 200,000 to 250,000 barrels of crude by mid-August.

In a disclosure to the Australian Stock Exchange, Nido said the Tindalo oil field has produced more than 135,000 barrels to date and that the oil field can now consistently produce 16,000 to 18,000 barrels per day (bpd) with the use of an electric submersible pump.

"The immediate forward plan is to maintain production ahead of the first crude-oil sale scheduled for mid-August which is expected to be for approximately 200,000 barrels to 250,000 barrels," Nido said.

Nido officials refused to say if the company will sell its to the country's two oil refiners, Petron Corp. and Pilipinas Shell Petroleum Corp.

"Marketing for the Tindalo crude oil is progressing, with the preliminary assay indicating a high-value product in comparison to its peers and potential buyers within the region are showing genuine interest," Joanne Williams, deputy-managing director of Nido, said.

Petron and Pilipinas Shell are still waiting for the Tindalo crude grade. Officials of the local refineries also want to know how the tests were made, and whether the refineries here will be able to process the oil.

"We will need to see the specs of the crude first," Petron president Eric Recto said, when asked it Petron will buy the Tindalo crude. —JE/VS, GMANews.TV

Spex, partners start drilling for oil in offshore Palawan
07/21/2010 | 05:30 PM



Shell Philippines Exploration BV (Spex) and its partners in the Silangan prospects have started exploratory drilling for oil and gas in offshore northeast Palawan.

South China Resources Inc., which owns a 15-percent stake in service contract (SC) 60, told the Philippine Stocks Exchange Wednesday that the consortium has started exploratory drilling Tuesday night.

Spex holds 55 percent stake in SC 60 and Kuwait Foreign Petroleum Co., 30 percent.

In announcing that the spud-in of SC 60 commitment well was made, the consortium told the stock exchange that the oil field "is deemed to have significant hydrocarbon accumulations."

For SC 60, the consortium is using the semi-submersible drill rig Atwood Falcon – the same rig Spex used for the Comago-2 well in northwest Palawan.

Spex, South China Resources, and Kuwait Petroleum committed a minimum investment of $24 million for the seven-year exploration period.

The consortium believes that SC 60, which covers around one million hectares of northeast Palawan, is one of the country's most promising areas in terms of potential for large accumulations of hydrocarbon petroleum.

Apex Mining discovers gold in Compostela Valley
07/21/2010 | 05:59 PM



Listed Apex Mining Co. disclosed Wednesday that it found gold in its Maco Mine project in Compostela Valley in Mindanao’s Davao region.

Apex said in a regulatory filing that it began a new exploration program to look into the possibility of extending its Bonanza vein system and other mineralized vein systems in the area.

The results from the drilling exploration program revealed a "high grade" mineralized vein located 70 meters northwest of the previously determined limit of the vein.

"The mineralized zone contains highly anomalous gold mineralization averaging 209.5 g/t [grams per ton] gold," Apex noted.

Earlier, Apex said that it looks forward to producing 25,000 ounces of gold in 2010. Gold production in the six months to June have already risen 41.4 percent to 12,142 ounces.

Apex Mining also plans to increase ore production from underground mining operations from 500 million tons per day to 700 million tons by September. The company is targeting ore production to reach 200,000 tons.

Apex Mining has two 25-year mineral production sharing agreements with the government composed of 1,558.5-hectare and 679-hectare sites in Barangays Teresa and Masara, Maco, Compostela Valley. —Jesse Edep/VS, GMANews.TV