STATE-LED PNOC Exploration Corp. (PNOC-EC) is looking for partners to explore thousands of offshore square kilometers in Northwest Palawan, it said in an invitation posted on its website on Monday.

In the “farm-in” invitation, the company identified the exploration site as covered by Service Contract (SC) 57. The Energy department previously defined a farm-in contract as a “transfer of rights and obligations agreement.”

PNOC-EC said it had been awarded by the department a 100% interest in the service contract, or an agreement in which the government grants exclusive right to explore, develop or utilize the resources in a particular area.

SC 57 covers 7,120 square kilometers in offshore Northwest Palawan, about 50 kilometers northwest of Busuanga.

The company named Executive Order No. 80 series of 2019 and under Department of Energy (DoE) Circular DC2020-02-0006 as the legal basis on the offer. The circular states that all minerals, petroleum, and other mineral oils owned by the state should be under full control and supervision of the state.

BusinessWorld has reached out to the DoE regarding the notice, but has not immediately received a response.

The invitation to farm-in is being offered in two options: as an operator for the 40% participating interest and as a partner for the 30% participating interest both in SC 57. This will leave the government’s exploration company with a 30% stake in the service contract.

Interested parties can submit their Letter of Intent to PNOC-EC until Feb. 17, while the deadline for submission of proposals is on April 12 at 12 noon. PNOC-EC has the right to reject proposals. — Marielle C. Lucenio

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