INVESTOR appetite remains intact in the energy sector amid corruption issues, energy officials said over the weekend.
Department of Energy (DOE) Secretary Sharon Garin said she is ‘very bullish’ on energy investments as the administration demands transparency, fairness, and accountability.
‘That’s shown by our GEA [green energy auction] over-subscription. It’s also shown during these past two days, the many meetings we’ve had of many investors from all over the world wanting to invest in the Philippines. So I think it’s still a very positive, and I don’t think it’s anything to worry about as far as energy is concerned,’ Garin, who attended the Singapore International Energy Week last week, said.
In fact, Garin said Abu Dhabi has expressed keen interest to invest in the country’s energy sector. ‘We were talking to Abu Dhabi, a Middle Eastern country, and they wanted to check if they can also invest in upstream in the Philippines. So I think they are aware it’s private-driven, and it’s not about corruption per se. So it’s more like we’re just establishing ourselves as a good policy makers as far as energy is concerned,’ said the energy chief.
DOE Undersecretary Felix William Fuentebella said the DOE’s recent endorsement for three more petroleum service contracts (PSCs) to the Office of the President reflects the strong investor interest in the country’s oil and gas sector.
‘There’s also an interest upstream, especially after the signing of the eight service contracts. And there are three more additional that the DOE worked on. There’s another three more in the works,’ he said. ‘And as far as policies are concerned, they also told us that the policies in the Philippines, the fundamentals are in place. So it’s very predictable,’ he added.
President Ferdinand Marcos Jr. earlier signed eight new PSCs covering exploration areas across the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan and Central Luzon. The eight awarded PSCs represent a potential investment commitment of around $207 million over a seven-year exploration period.
Last week, Garin stressed the importance of aligned policies within neighboring countries to unlock the full potential of a regional power grid interconnection.
The Asean Power Grid interconnected system will drive the transition toward a cleaner, resilient, and sustainable energy future, where progress and prosperity are shared equitably across the member-states. To achieve this, Garin said cooperation must go beyond building physical links. ‘We must align our national policies to ensure systems can operate seamlessly across borders. Harmonized technical standards, compatible market mechanisms, clear investment frameworks, and stable cross-border governance from the foundation of our collective progress,’ she said.
Garin also said the Philippines continues to explore a bilateral power interconnection with Malaysia-its first potential link to the regional grid. ‘We would like to explore the possibly of connecting the Philippines to Malysia, and in doing so, the rest of the region. This will take technical, financial, legal, and policy groundwork, but the building blocks are already being laid.’