I’m wondering if this is just a discount given to PUV vehicles or if its really cheap fuel. If its the latter I wonder where they are getting the oil from? Could it be from the oil wells with the Philippine territories that are already spewing oil?

Definitely not from the Tindalo Oil fields with their reported 5.1 million barrels estimated oil reserves because they announced that they had sold all their 200,000 barrels of oil to some Koreans. Petron meanwhile said that Petron and Pilipinas Shell are still waiting for the crude grade report of the Tindalo Oil well to see whether they are capable of refining the oil or not.

If its the former, you can’t help but ask yourself why Petron would be motivated to do that? Considering that the government no longer has a stake in their company in order to compel them to do something like that.

Either way, they always say to never look a gift horse in the mouth, so Cheers to Cheaper Gasoline!

PERC is expecting to commission the first 20 MW integrated steamfield and power plant by late 2013. PERC will develop the said geothermal project together with Trans-Asia Oil and Energy Development Corp. and PNOC – Renewables Corp.

The ECC encompasses the 4 major phases: well work-over and drilling, installation of the fluid collection and reinjection system, power plant construction, and the erection of transmission facilities. The ECC requires however some conditions. Major of which are: to form a multi-partite monitoring program, establish an environmental guaranty fund, and undertake mitigating measures whenever necessary in each phase of the project.

The Philippines, next to the United States, is one of the countries with the most number of geothermal sourced power. Energy Development Corp (EDC) holds the distinction of being the no. 1 geothermal producer in the country.

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The recently formed Wind Energy Development Association of the Philippines (WEDAP) announced that together with the National Grid Corp. of the Philippines (NGCP) they would plan to establish transmission facilities in Northern Luzon with a capacity of 600 MW to supply the grid with wind power based energy.

The WEDAP, is composed of the following Wind Energy Companies: Energy Development Corp., Alternergy Philippine Holdings Corp., Trans Asia Oil and Energy Development Corp., PetroEnergy Resources Corp., UPC Renewables and Northwind Power Development Corp.

Aside from this they have asked support from the DOE to mark portions of Northern Luzon as wind corridors so that priority can be given to them by the NGCP and related government institutions.

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Simply spoken, this all really boils down to pricing. Oil companies don’t want to buy locally because of the price, so they import from abroad. Bioethanol producers want to stop this by asking the DOE to control the importation.

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Oil obtained during the test flow was stored and will be sold instead of being burned off like in normal practice.

The Tindalo Oil well is covered by SC 54A issued by the Department of Energy. Nido Petroleum holds a 42.4% ownership of SC 54A while its other partners are Kairiki Energy Ltd. (30.1%) Trafigura Ventures III B.V.15.1% and TG World Energy Corp (12.5%). Nido Petroleum had initially discovered the Tindaol well in October of 2008.

Nido Petroleum said that it will use the profit they will earn from the Tindalo well to fund five other shallow-water well exploration and drilling programs in Palawan. They said that they had already identified 20 shallow-water prospects in the area that are projecting to hold about 200 million barrels of oil reserves.

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These are for wind the farm projects in Camiguin, Dinagat and Surigao in Mindanao as well as Luzon projects in Balaoi-Pagudpud Ilocos Barangay Saoit at llocos Norte as well as another at Taytay, Rizal.

As of March 2010 the Department of Energy had approved about 44 wind power projects in the country with a potential to generate about 921 MW of energy.

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Petron currently has a supply agreement with San Carlos Bioenergy Inc. (SCBI), a local bioethanol processor with capacity of 125,000 li/day.

With this announcement it is expected that this will encourage other players to venture into bioethanol production so that money that would have otherwise been spent to import bioethanol can be spent locally and benefit the downstream industry of the biofuel sector. Some companies however have put their bioethanol production plans on hold because of inadequacies in the policies of the biofuel law.

According to the fuel company, they estimate that in 2010 they will have to import 60% of their bioethanol requirements in order to meet the mandated 5% blending. According to the Biofuel Law, gasoline companies are allowed to import bioethanol in order to satisfy compliance if the local production of bioethanol is not enough. This will be much higher next year when the mandated mixing requirement will be bumped up to 10% (461 million li/year).

The oil company is said to command a 40% market share of the fuel sold in the Philippines spanning 1,500 gasoline stations in the archipelago.

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Petroenergy was recently awarded the contract for the Maibarara geothermal field at Mt. Makiling. The winning bid submitted by Petroenergy called for the development of an integrated steamfield and power plant development with the initial 20MW powerplant to be finished by 2013.

Aside from the Maibarara field, Petroenergy also has contracts awarded to them for the development of wind energy at Sual, Pangasinan and Nabas, Aklan.

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