Philippines

Philiphine

Basic Facts:

Government: Republic

GDP: $ 324.8 billion (2009 est.)

GDP Composition: 14.9 % Agriculture, 22.9 % Industry, 55.1 % Services (2009

est.)

GDP Growth rate: 0.9 % (2009 est.)

Budget Revenues: $ 23.56 million

Budget Expenditures: $ 29.82 million (2009 est.)

Industry Product: electronics assembly, garments, footwear, pharmaceuticals

Brief Overview

The Philippines had a wealth of potential energy resources. It ranked second behind the United States in production of electricity from geothermal sources. Installed capacity in 1988 was 828 megawatts; estimated potential was 35,000 megawatts. Undeveloped hydroelectric potential of 3,771 megawatts also was identified. Coal resources, estimated to be 1.2 billion tons, also were plentiful, although of a rather poor grade for electrical generation. In addition to these sources, solar, animal waste, agriwaste, and other nonconventional sources were utilized for generating small amounts of electricity and other energy needs in rural areas. Together they accounted for about 15 percent of energy consumption.

The Philippine National Oil Company (PNOC) has historically dominated the country oil sector. market reforms beginning in 1998 aimed at deregulation of the oil industry have brought many new oil companies to the Philippines. The principal government agency charged with monitoring the oil sector is the Department of Energy (DOE), which holds responsibility for issuing exploration and production licenses and ensuring compliance with relevant regulations. Historically, the Philippines has not had significant domestic oil production. Recently, exploration and production activities in deepwater areas off the Philippines have increased the country domestic petroleum resources. This increase was due primarily to the development of new deep-sea oil deposits in the Malampaya Oil Rim, which are found underneath the large Malampaya natural gas field. The Malampaya project is the country largest oil-producing area. The Malampaya project was inaugurated in October 2001, with Shell as the operator (45 percent stake), and Chevron (45 percent) and PNOC (10 percent) as project partners. After committing $2 billion in exploration and development costs, Shell and Chevron relinquished their right to develop the oil rim project to PNOC in 2004, citing lack of sufficient oil reserves and concerns over possible damage to the overlying natural gas-producing reservoir. In June 2006, PNOC awarded a contract to Malaysia Mitra Energy to develop the Malampaya Oil Rim.

A major impetus for changes in the country’s natural gas sector has been the Malampaya offshore natural gas field. Shell (the operator of the project, with a 45 percent stake), Chevron (45 percent), and PNOC (10 percent) have come together to form the $4.5-billion Malampaya Deepwater Gas-to-Power Project. The project is the largest natural gas development project in Philippine history, and one of the largest-ever foreign investments in the country. The Malampaya Project was officially inaugurated on October 16, 2001 and holds an estimated 3.7 Tcf of natural gas reserves. Natural gas from Malampaya is pumped via a 312-mile sub-sea pipeline to a natural gas processing facility and three power plants in Batangas with a combined generating capacity of 2,700 megawatts.

In October 2006, Forum Energy announced that a natural gas prospect at the Sampaguita field could hold up to 20 Tcf of possible natural gas reserves, based on seismic data retrieved from the Sampaguita natural gas field. The field was originally discovered in 1976, but never pursued because companies believed it to hold few reserves. Some industry analysts question the 20 Tcf figure, saying that previous exploration work at Sampaguita revealed a more likely range of 3.5 to 5 Tcf of natural gas reserves. Forum Energy plans to test drill at Sampaguita in the future, and if testing confirms substantial natural gas reserves, the company will reportedly consider a liquefied natural gas (LNG) project. The Philippines has recoverable coal reserves of 260 million short tons (Mmst). In 2004, the country consumed 10.1 Mmst of coal, up 45 percent since 1999, while producing only 2.9 Mmst. The Philippines relies on imports for much of its coal consumption, primarily from Indonesia, China, and Australia.[1]

Government body

The Philippine Department of Energy

National Company

Philippine National Oil Company (PNOC).

External Company

Shell, Chevron, PNOC

Current condition

No. Category Production

Consumption

Country Revenue
1. Oil 13,425 ktoe (2007) 12,109 ktoe (2007)
2. Gas 3,033 ktoe (2007) 77 ktoe (2007)
3. Coal 6,292 ktoe (2007) 1,419 ktoe (2007)
4. Minerals

[1] http://www.eoearth.org/article/Energy_profile_of_Philippines

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