PH and Israel signs $34M Palawan oil exploration agreement

PH and Israel signs $34M Palawan oil exploration agreement




The Philippines independent Foreign policy is at full swing when for the first time a sitting Philippine president visited the state of Israel and Jordan.

President Rodrigo Roa Duterte was able to fully connect with the two country’s but signing different agreements that aims to strengthens the friendship and diplomatic relationship between them and the Philippines.

Philippines inks deal with an Israeli firm for possible new sources of energy. In picture Philippines' pride and joy- Malampaya shallow water platform- which is estimated to be good up until 2029 only (photo credit to ABS-CBN)

One significant and historical agreement which brings so much promise is the possibility of the country lessening the dependence on imports on imported oil.

Last October 18, President Duterte signed a petroleum service contract for the east Palawan  area between the Philippines and an Israeli firm- Ratio Petroleum Ltd.

The service contract specifically covers East Palawan Basin or Area 4 of the fifth Philippine Energy Contracting Round.

This is but a ceremonial signing as the deal has been inked already during Duterte’s state visit to Israel last month.

Presidential Spokesperson Salvador Panelo said the President signed the agreement on behalf of the Philippine government because such exploration contract requires the Philippine president’s signature.

The service agreement contract will allow Ratio Petroleum to explore 416,000 hectares across East Palawan Basin for potential oil and gas resources. The deal is expected to cost at least $34.35 million, including data gathering and drilling activities over an initial period of seven years.

Panelo said the signing of the agreement is a sign of a healthy and robust relationship between the two countries and the Philippines’ petroleum industry.

“If you remember, the president made statements that (the country) needs to attain energy security and sustainability at the soonest possible time. The problem is we do not have oil so we are experiencing difficulties,” Panelo said.

“We’ve been dependent on oil-producing countries for our oil. So we need to boost the exploration of our own resources,” Panelo added.

“A step in the right direction,” this is how Energy Secretary Alfonso Cusi described the awarding of the petroleum service contract to Ratio Petroleum.

“The president has been very clear- our country needs to attain energy security and sustainability at the soonest possible time. We are currently experiencing how our dependence on importation has left us at the mercy of price movements in the global oil markets,” Cusi said.

The Philippines has been importing 94 percent of its oil requirements , with the total import bill jumping to $9.89 billion in 2017, a 31.2 percent increase from the $7.54 billion import bill in 2016.

The deal is the first petroleum service contract signed under the Duterte administration.


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1 Comments

  1. Why with Israel,the Zionist are dangerous for peace in the world.

    ReplyDelete