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EDC to invest $47 million internationally this and next year

Geothermal sampling at Pinaya springs, Chocopata, Peru (source: flick/ GRC, creative commons)
Alexander Richter 8 May 2013

EDC to invest $47 million this and next year internationally, for exploration and drilling work in Chile and Peru, but also looking at possible projects in Kenya and Indonesia.

Philippine Energy Development Corp. has announced it “is earmarking $46.5 million until next year to conduct exploration and drilling activities overseas.

The company currently holds geothermal exploration concessions in Chile and Peru. It is also in talks with an Indonesian exploration firm for a joint venture to explore two possible sites in Indonesia.

“Normally, we get offers from the US but [these are] too small so we’d normally look at the Pacific rim. We would rather go for the big ones,” said EDC President and Chief Operating Officer Richard Tantoco in a press briefing on Tuesday.

Kenya, he added, is also being considered. “We are looking at Kenya but with a lot of caution…[there is] nothing firm yet.”

This year, EDC is allocating $2.5 million, roughly P100 million, for geophysical work and then $40 million next year to bankroll various drilling activities overseas. “We will be sending teams this year in those countries then by next year we hope to be able to start drilling wells,” added Tantoco.

In Chile, EDC plans to drill up to three wells, each costing $9 million. In Indonesia, Tantoco said, EDC is looking at two possible sites.

EDC’s first-quarter net income at end-March remain unchanged from the previous year’s level at P2.7 billion ($66 million).

EDC’s earnings performance resulted from the increased contribution from Green Core Geothermal Inc. (GCGI) which offset the drop in First Gen Hydro Power Corp.’s revenue input.”

Source: ABS CBN News Philippines