BHP Billiton & 12 Oil Firms Start Drilling oil and gas in the Philippines

Philippines — Dubbing it as "the period of upturn in upstream petroleum investments" in the country, the Department of Energy (DoE) has announced that 10 to 12 wells have been committed by service contractor-firms in their drilling programs this year.

In a statement to the media, Energy Undersecretary Jay Layug disclosed that they have cornered "10-12 firm commitments to drill exploration wells and three workover wells from our service contractors."

This includes the following:

• Blade Petroleum for the Cadlao block in Northwest Palawan;
• Galoc Production Company (GPC) in Service Contract 14C, also in Northwest Palawan;
• Philippine National Oil Company-Exploration Corporation (PNOC-EC) in Cagayan basin;
• Gas2Grid in SC 44 and China International Mining Petroleum Company Limited (CIMP) at SC 49 in Visayas basin;
• Frigstad Energy at SC 50 in NW Palawan;
• Pitkin Petroleum at SC53 in Mindoro-Cuyo prospect; and
• BHP Billiton at its two blocks in Southwest Palawan.

Layug emphasized these drilling programs are part of the work commitments submitted by the service contractors to the energy department. "These are existing work programs under their respective service contracts," the energy official said.

Exploration wells are drilled to discover oil or gas and if these can be developed at commercial quantity; while workover wells may be pursued to improve flowrates, at proven finds or existing production fields.

Service contractors are required to submit a seven-year work program with the DOE; and that could entail drilling of several wells to determine if the oil or gas finds would merit declaration of commerciality.

While the department has not given exact figure on the investment costs, it was indicated that the rule of thumb for offshore deep well drilling could range from $80 million to $100 million; while those onshore may command an investment of $30 million to $50 million per well.

"We have seen an upturn in Philippine upstream petroleum industry this year as a result of current high-oil price market condition and the efforts of the DoE to revitalize the industry," Layug has noted.

For the oil and gas investors, the equilibrium price they have been hinging their investments on has been at $80 per barrel. Obviously though, current price trends have already surpassed that immensely.

Layug specified that the energy department's intent of re-igniting interests in upstream petroleum ventures is in line with the Aquino administration's thrust "to focus on resource development as a long-term plan of action in the hopes of finding indigenous oil and gas resources to reduce our dependence on imported petroleum and mitigate effects of oil price volatility."

The department will be offering 15 new petroleum service areas in biddings scheduled until July 2012.

Travels in Borneo, the land of the orang-utan

IT was somewhere between a refreshing beer and just before the drum beats of Canadian band Iskwew that I looked around and realised how at home I was in a remote cultural village in the middle of Borneo.

It was the three-day Rainforest World Music Festival - a tribal Big Day Out - that hooked me on Malaysia.

It only took an hour to drive from the bustling city of Kuching to the Sarawak Cultural Village where the festival was in full swing with music workshops, sizzling food stalls and performers tuning up.

We stayed at the Kuching Hilton, an imposing hotel of 315 guest rooms perched on the Sarawak River.

The city was laid at our feet and we could explore the waterfront, pose with the city’s bizarre giant cat statues and brush up on local history in the Sarawak Museum.

A leisurely 275km journey, with stops at rubber, cocoa and pepper farms and a short boat ride, took us to the Batang Ai Longhouse Resort, managed by Hilton, its only jungle property.

Its 11 accommodation blocks are based on traditional Borneo longhouses.

Tours upstream the Ulu Air river in motorised longboats led us to the start of a humid but memorable trek under the rainforest canopy of the Batang Ai National Park, home to protected wildlife like orang-utans, hornbills and gibbons.

We were on the lookout for the notoriously shy ‘rangas’, but the only sign of them was their droppings in the middle of our track. Still, it was nice to know they were there, high up in the trees, watching us.

Continue reading (Incl. Pics) at: Travels in Borneo, the land of the orang-utan

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KLIA-Sandakan Direct Flights To Resume Feb 18

Direct flights between Sandakan and Kuala Lumpur are expected to resume on Feb 18.

According to a statement from the Prime Minister's Office, the move would bring the frequency of direct flights between KL International Airport (KLIA) main terminal and Sandakan to 11 times weekly.

The statement was issued after a meeting between Prime Minister Datuk Seri Najib Tun Razak and Malaysia Airlines senior management to discuss various issues relating to the operations of the national carrier, including moves affecting consumers in Sabah and Sarawak.

"Among the issues discussed was the reintroduction of direct flights between Sandakan and Kuala Lumpur in recognition of existing and growing demand for premium direct full service connectivity between Sandakan and KLIA main terminal," the statement said.

Sandakan, on the east coast of Sabah, is the state's second largest city.

Continue reading at: KLIA-Sandakan Direct Flights To Resume Feb 18
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Philippines seeks another ASEAN support for possible China meet on Spratly row

Recently, the Philippines protested early year 2012 for another China's invasion to the Philippines territory in Sabina Shoal which is only a 82 Miles from the Philippines Main Island.

China rejected the protest of the Philippines and pronounced that they owned everything in the West Philippines Sea and voiced that it will call for another negotiation to settle Spratly.

The Philippines is committed and lead for the resolution of the Spratly and called anew for the support of the Association of Southeast Asian Nations (ASEAN) in having a meeting with China to resolve the territorial row involving the Spratly Islands.

Foreign Affairs Secretary Albert del Rosario made the call at the ASEAN Foreign Ministers' Meeting Retreat at Siem Reap, Cambodia, where he reiterated his stand for a rules-based solution to the problem.

"In the context of the Philippine position and the background on this issue, the Philippines reiterates its proposal that a meeting be held as soon as possible among the claimant states including China, under the guidance of ASEAN, to resolve the conflicting claims in the WPS (West Philippine Sea) based on the rules-based regime of (the United Nations Convention on the Law of the Sea). This proposal for constructive engagement should be acceptable to all," Del Rosario said.

He added the Philippines calls on all ASEAN Member States to endorse this proposed claimant states' meeting, which the Philippines is ready to host.

"We would also welcome other ASEAN Member States to host this meeting if they would like to unequivocally express their support for and advance a rules-based approach in the region," he said.

The text of his statement delivered last Jan. 11 was posted Sunday on the DFA website.

Aside from the Philippines and China, other claimants to the Spratlys include Taiwan, Brunei, Malaysia, and Vietnam. Of these, the Philippines, Brunei, Malaysia and Vietnam are members of ASEAN.

Only legitimate approach

Del Rosario maintained a rules-based approach is the only legitimate way in addressing disputes in the West Philippine Sea.

He said the dispute settlement mechanism established in the UNCLOS is the fundamental principle of the rules-based approach being espoused by the Philippines.

"I have emphasized this at the 44th ASEAN Ministerial Meeting (AMM) and 18th ASEAN Regional Forum (ARF) and again at the last ASEAN Foreign Ministers' Meeting, all held in Bali. This rules-based approach under UNCLOS also calls for the resolution of disputes through peaceful means. For this reason, the Philippines proposed to ASEAN the Zone of Peace, Freedom, Friendship, and Cooperation (ZoPFF/C) as the actionable framework to clarify and segregate the disputed land features from the non-disputed waters of the West Philippine Sea, and in the process, address the issue of the 9-dash line," he said.

He also said the Philippines has stated it is considering third party adjudication, arbitration or conciliation, as appropriate, in the context of the dispute settlement mechanism of UNCLOS.

On the other hand, he said the Philippines also proposed during the November AMM a meeting of claimant states in the West Philippine Sea to specifically include China, to resolve these claims and define the non-disputed and the disputed areas for the purpose of establishing a Joint Cooperation Area.

The rules-based approach calls for: solving the issue peacefully in accordance with the rule of law, particularly international law and UNCLOS the multilateral participation of various stakeholders to account for the various perspectives and interests.

"As we work on building the ASEAN Community, it behooves Member States to now play a positive and meaningful role to solve the disputes peacefully in accordance with the Treaty of Amity and Cooperation (TAC) and reach a stage whereby we are able to help resolve sensitive issues decisively without letting such issues fester and adversely affect the progress of our bilateral or multilateral relations," Del Rosario said.

Code of conduct

Del Rosario also said all are eager to move forward on the Code of Conduct to resolve the issues in the West Philippine Sea.

He said the Philippines is ready to accept a Code of Conduct that calls for the primacy of international law, including UNCLOS, in resolving the disputes in the West Philippine Sea.

"It is ready to accept a Code of Conduct that espouses the concrete and actionable activities to foster cooperation in the West Philippine Sea in the context of international law. And, lastly the Philippines is willing to commit to a Code of Conduct that addresses the very core of the issue and that is to define, clarify, and segregate the disputed areas from the non-disputed areas in the West Philippine Sea," he added.

He pointed out ASEAN is at a critical juncture of playing a momentous role for the resolution of the disputes in the West Philippine Sea.

"We must now muster the will as an ASEAN Community to face these sensitive issues with determination. As you may appreciate, we believe that this is the only way for all of us to move forward and be able to demonstrate ASEAN's leadership in the global community," he said.

Rhino breeding facility urgently needed in Borneo

TABIN: There is now an urgent need to establish the Borneo Rhino Sanctuary (BRS) breeding facility.

The facility, expected to cost around RM8 million is needed badly, and while the government has agreed to its establishment in 2008, it has not been built yet, Borneo Rhino Alliance (BORA) Executive Director Datuk Dr Junaidi Payne said this to reporters visiting the interim facility on Thursday.

“I hope the capture of Puntung would prompt the government of Malaysia with renewed interest because we are in need of this proper long term breeding facility,” said Payne.

Puntung is a young Sumatran rhino that was captured on December 18, 2011, within the reserve itself and was moved to the interim facility next to the sole male rhino in captive, Tam, on Dec 25, last year.

“A tentative estimate of her age is 10 to 12 years old. She is feeding well and putting on weight,” he said.

Payne added that the capture of Puntung haD raised their hopes for survival of the species.

“What I can say at this stage is that we have a potentially fertile male, Tam, and a potentially fertile female, Puntung. So we are now presented with a potential that wasn’t there before, several years ago. If nothing else, it gives us something like the confidence element, not only for BORA but also the government, and that is something worth pursuing,” said Payne.

Without the facilities established, mating for Puntung and the sole male captive rhino on site, Tam, would have to take place in a small paddock between the night stall and the forest paddock, which Payne described, as tiny and not ideal.

Continue reading (Incl. Pic) at: Rhino breeding facility urgently needed in Borneo

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Aquino Govt appeals to US to remove 'withholding element' in military aid

The Philippines appealed to the United States to remove the "withholding element" from its military assistance program, saying there is no factual basis for perception of worsening human rights situation in the country.

Foreign Affairs Secretary Alberto Del Rosario made the appeal as he met yesterday with visiting members of the US House Appropriations Committee at the Department of Foreign Affairs (DFA) with whom he discussed bilateral issues including defense, security development assistance and good governance.

"We talked about areas of continued assistance and what priority request we have from the US," Del Rosario told reporters following the meeting with the US lawmakers.

Del Rosario said he requested the withholding mechanism in the US Foreign Military Financing (FMF) dropped as the US Congress continues to withhold a portion of US assistance to the Philippine military until the Philippine government meets certain conditions related to solving and prosecuting cases of extrajudicial killings.

"As a result, their thinking is that we are not quite up to standard in terms of our human rights standard in the Philippines. We are trying to live those standards so that withholding element can be removed," Del Rosario said.

"We are asking them to revisit that because we do not like the idea that we are being portrayed as a human rights violator which is not factual. As a matter of fact, we are trying to address that perception and we do have very specific mechanisms to be able to do that," he added.

US Ambassador Harry Thomas Jr. informed representatives of Philippine-based human rights groups during a discussion at the US Embassy on Oct. 21, 2011 about the withholding of US assistance to the Philippines.

Human Rights Advocates (PAHRA) chairperson Teodoro de Mesa led representatives of human rights groups during the meeting with Thomas.

Thomas said the US Embassy was encouraged by the pledge that President Aquino made in his 2010 State of the Nation Address to curb extrajudicial killings in the Philippines.

Thomas noted however that the 2010 US Department of State Human Rights Report on the Philippines included assertions of cases of extrajudicial killings that occurred under the Aquino administration.

He expressed concern regarding the slow pace of investigations and prosecutions of past cases.

Thomas said that from 2007 to 2010, the US government extended $3.5 million in grants to the Philippine government and non-government organizations to strengthen their capacity to address human rights violations.

He said the US government would continue to press for progress on addressing past cases and the ongoing problem of extrajudicial killings in the Philippines.

The human rights groups' representatives informed Thomas of their ongoing projects and suggested measures that could significantly improve human rights conditions in the Philippines.

Del Rosario, meanwhile, said he also followed up the Philippine government's request for third Coast Guard Cutter and a squadron of F16 fighter jets under defense articles.

"We are following up on our request for our third Coast Guard Cutter. As you know the second one we are awaiting delivery. We are also following up our request for the F16. We are asking for a squadron to be considered for the Philippines," he said.

Del Rosario said that in December, the US expressed willingness to help the Philippines obtain a squadron of F-16 to improve its defense capability but stressed there is no discussion yet on stationing of US naval vessels in the Philippines.

He noted plans to station US navy ships in the region including Singapore but there was no discussion yet of stationing of naval vessels in the Philippines.

Del Rosario and Defense Secretary Voltaire Gazmin will visit the US in February or March to meet with their counterparts.

Del Rosario said the US is ready to help improve the Philippines' defense capability.

He said the planned acquisitions had already been discussed with US Secretary of State Hillary Clinton and other US officials.

Clinton delivered during her visit to Manila in November a strong message of assurance and support for the Philippines in protecting its maritime domain and improving territorial defense. Clinton delivered her message on the deck of an American warship that arrived in Manila for her visit.

The territorial conflict and heightened tensions between China and the Philippines over the resource-rich West Philippine Sea (South China Sea) remains a critical factor in bilateral relations between China and the Philippines.

The Philippines formally accepted in May the turnover of a US Coast Guard (USCG) Hamilton-class cutter acquired by the Philippines through the US Foreign Military Sales program. The cutter was refurbished and renamed BRP Gregorio del Pilar. It is now the largest patrol ship in the Philippine Navy.

Reference: Philstar News

Malacañang Palace grateful for Philippines’ improved ranking on economic freedom

Malacañang Palace  expressed gratefulness over a report that Philippines had risen in the world economic rankings to 107 from 115 previously despite a challenging global economic environment published January 14, 2012.

It also welcomed the HSBC Expat Explorer Survey result, which ranked the Philippines as the eighth friendliest country in the world.

The 2012 Index of World Economic Freedom released on Thursday said among 179 countries rated, the Philippines had the 107th freest economy with a score of 57.1. The report said the country's score was 0.9 point higher than last year, attributable in large part to a significant improvement in business freedom.

Deputy presidential spokesperson Abigail Valte said over dzRB that the Philippines improved its ranking because of economic expansion and the efforts of the government to pursue legislative reforms to enhance the business environment.

"We are also happy to note that even the report itself, an assessment from (a) third party, notes that our regulatory efficiency has been notably enhanced. This is what President Aquino has always been saying - that we are really after efficiency and government. We have been trying to streamline systems. Business registration that will take anywhere between 24 to 48 hours can now be done in 15 minutes. These are the small things that can help businessmen who want toinvest in the Philippines," Valte said.

"And the other good news, we're also happy to note that in one of the surveys conducted by HSBC... And this is why we believe that it really is more fun in the Philippines like what the Department of Tourism is saying," Valte said.

Asked whether the WEF report could counter the claims of former president and now Pampanga Rep. Gloria Macapagal-Arroyo against the Aquino administration, Valte said "these are (assessments) by third (parties) who have no axes to grind against the present administration."

"Some people will say, of course the administration will always promote what is good, what is good with the economy and people on the opposite side of the fence will almost, will always promote what is good about them and what is bad about the present. But at least this is a third party assessment and we can see the recommendations and positive findings as well the points that the third party has also raised," Valte said.

Valte said the WEF report cited that despite some progress, "corruption continues to undermine prospect for long-term economic development and the judiciary, which remains susceptible to political interference and it does provide effective protection for property rights or transparent enforcement of the law."

Valte said President Aquino himself had assured the international community that he would continue to be relentless in the fight against corruption and run after those perpetuating the culture of impunity.

"While some people chose to oversimplify and say that corruption is not the only problem, that's true, there are a lot of other problems that we need to face but this one has big impact on our economy," she said.

"This is what we have been concentrating on again in the past year," she said.

"As regards the comment on the judiciary which remains susceptible to political interference, that is up to a separate branch of government to determine how they will take that observation...On the part of the executive, what the President is saying is when it comes to prosecution, your case must be strong, never let the delay come from the executive branch. Now when it comes to the adjudication of cases, that is something that is up to the judiciary to resolve. Before it takes six years to have conviction or acquittal, it is the judiciary that must take steps to ensure that there will be speed (in the) dispensation of justice," Valte said.