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Two geothermal service contracts of Basic Energy terminated in the Philippines

Rice terraces in Northern Luzon, Philippines (source: flickr/ Rex Pe, creative commons)
Alexander Richter Alexander Richter 28 Apr 2019

The Philippines Department of Energy has terminated two geothermal service contracts by Basic Energy. The company has filed for reconsideration for the two contracts of East Mankayan and West Bulusan.

In a public disclosure, Philippines-based Basic Energy Corp. reports that the country’s Department of Energy has cancelled its geothermal service contract for the East Mankayan geothermal projects, covering certain areas in the provinces of Benguet, Ifugao and Mountain Province in Luzon.

The Geothermal Service Contract (GSC) 2013-02-041 was awarded on Feb. 5, 2013, had a five-year pre-development phase.

During that period, the company said it conducted the necessary geological and geophysical studies to determine the potential of the geothermal resource and information and education campaign in the affected areas.

The company though ran into challenges due to local opposition from indigenous people and requested a suspension of obligations until those issues were solved in January 2018. The DOE acted on the request, terminating the service contract retroactive on February 8, 2018.

Meanwhile, the DoE denied the company’s request for a moratorium for GSC 2013-11-048, which covers the West Bulusan Geothermal Project, for which the contract was also terminated in October 19, 2018.

Basic Energy reports though, having “filed a motion for reconsideration of the said termination, which is now pending resolution of [the] DoE,”

The firm has other geothermal contracts in various parts of the country in Mariveles town, Bataan province; Iriga town, Camarines Sur and Albay provinces; and West Bulusan town, Sorsogon province.

Source: Manila Times