Publicly listed Basic Energy Corporation (BEC) has pulled out from the four service hydro service contracts that were previously awarded to it by the Department of Energy (DOE).

These are for the prospects in Puntian 1 and Puntian 2, Malogo 2 and Talabaan in Negros Occidental.

“The move is in support of efforts to streamline its renewable projects and concentrate resources on its geothermal service contracts and other projects in the pipeline,” the company has explained.

It qualified though that “the four hydropower service contracts showed promise based on initial studies.”

Nevertheless, it qualified that their geothermal ventures “provide greater potential,” and the company is also more enthusiastic on projects that have “faster turnaround time”, including solar energy.

On a more positive note, drilling for the first well of the planned 60-megawatt geothermal project will now go ahead following allocation of a budget.

In a disclosure to the Philippine Stock Exchange (PSE), it noted that “the approved budget includes land rights, civil works, drilling and well testing costs.

No number was provided by the publicly listed firm as to the budget allotment for the drilling activity.

The company added that its board of directors gave go-signal to the management’s proposal “to bring the project to drilling in May this year.”

The geothermal project’s potential, as fleshed out in its pre-feasibility study, will be for a capacity ranging from 20MW to 60MW.

The project site in Calumpan Peninsula is under geothermal service contract number 8 covering a total area of 3,841 hectares.

Source: http://www.mb.com.ph/basic-energy-withdraws-4-hydro-service-contracts/