News

Monday, March 1, 2010

New Rig To Boost EDC’s Savings and Income From Drilling

 Rig_photo

Rig 14 is the most modern drilling rig in the country with unique features such as the variable frequency drive and Amphion integrated rig control system.

Geothermal leader Energy Development Corporation (EDC) expects to save US$40,000 a day from its new drilling rig, the most modern in the country.  The savings will be realized from the reduced number of days it takes to drill a well, as a result of the increased rate of penetration measured in meters per day. 

            “With this new state-of-the-art rig, we will achieve significant operational efficiency by reducing our drilling days by 40 to 50%.  For every day deducted from each well we drill, not only do we save US$40,000 but we also accelerate the production of steam that results in higher revenues.  The rig’s superior safety and mobility features will also enable us to accomplish our drilling targets in terms of programmed wells per year and this is crucial since we are in an expansionary mode,” EDC President and COO Richard Tantoco explained. 

            The new rig which EDC purchased for almost P1 billion has two unique features: the Variable Frequency Drive (VFD) and Amphion Integrated Rig Control System.  The former allows for a more accurate speed and torque control while the latter centralizes control of various rig equipment.  In addition, its mud system has a 1,800 barrels capacity which can increase rate of penetration.  The new rig also has superior safety and mobility features.  

            “We continue to invest in drilling equipment and manpower because they form the backbone of our geothermal business.  The new rig is a valuable addition to our assets and will enable us to meet our drilling targets not only for our existing projects but also for the Mt. Labo and Mt. Mainit prospects,” Tantoco said.  EDC recently bagged the service contracts for the Mt. Labo and Mt. Mainit geothermal prospects in Camarines Norte and Davao del Norte, respectively.

            While its main revenues come from steam and electricity sales, EDC has made significant inroads in marketing its drilling services abroad.  It has an existing contract with Papua New Guinea’s Lihir Gold Limited (LGL), one of the leading gold producers in the Asia Pacific region.  LGL has been engaging EDC’s engineers and services since 1999 for various drilling contracts.  The largest onshore drilling contractor in the Philippines, EDC has been exporting its drilling services since 1997 starting with Indonesia.

Tuesday, January 19, 2010

EDC Awarded Patent For Homegrown On-Line Steam Purity Monitoring System

The Bureau of Patents of the Intellectual Property Office has awarded a patent to geothermal leader Energy Development Corporation (EDC) for its on-line Steam Purity Monitoring system.  The system, developed by EDC’s geoscientists and technical services engineers, and installed in all the company’s project sites since 1996, provides quick, reliable and continuous real time data of geothermal steam supplied during normal plant operations for immediate response to system upsets. 

 “We are proud of this very first patented invention of the company because it proves the world-class ingenuity and expertise of EDC in geothermal production.  The on-line steam purity monitoring system is another EDC innovation that makes our operations more efficient, cost-effective and safe,” EDC President and COO Richard Tantoco said.

Before the technology was developed, EDC relied on the manual method involving a five-man shifting crew to conduct the sampling of steam condensate.  The data would be available only after 24 hours.  Since EDC implemented the on-line steam purity monitoring system, it has displaced between PhP31 million to PhP52 million in annual operating expenses and realized gross savings of up to PhP 314 million from Y1996 up to Y2005. 

Tantoco added that EDC has pending patent applications for four other technologies it has developed through the years.  “These are the results of our long-term commitment to make our operations truly world-class.   We have been developing and applying practical technologies to improve resource management in our geothermal sites.  Our experience in managing five geothermal project sites for the past 34 years has enabled us to study various situations and problems related to resource management and invent technologies to address them.  This is an achievement that fortifies EDC’s leadership and expertise in the geothermal industry.” 

EDC owns and operates geothermal steamfields in Leyte, Negros Oriental, Negros Occidental, Sorsogon and North Cotabato with a combined capacity of 1,199 MW, as well as the 701.5-MW Unified Leyte, 192.5-MW Palinpinon, 106-MW Mindanao and 49-MW Northern Negros geothermal power plants.

Wednesday, January 6, 2010

EDC, AFI Ink Agreement on Bantay-Baterya & Bantay-Langis Projects

 Bantay-Kalikasan

A pact for a clean environment.  Energy Development Corporation Vice Chairman & CEO Paul Aquino and ABS-CBN Foundation, Inc. Managing Director Gina Lopez seal agreement to help clean up the environment of pollution-causing junk lead acid batteries and used oil through the Bantay Baterya and Bantay Langis projects, respectively.  EDC will donate its used oil and batteries to AFI which will pick up, transport and recycle/re-refine these industrial materials in tandem with the Philippine Recyclers, Inc (PRI) and Genetron International Marketing.  Aside from recycling the batteries and used oil, PRI and Genetron will also determine the corresponding monetary value and subsequently remit the money to AFI.  The funds to be generated from the projects will be used to support the operations of AFI’s Bantay Kalikasan and Save the La Mesa Watershed Project. The project is compatible with EDC’s sustainable management principle and enables it to participate in a donation program that ensures risk-free disposal of used industrial materials.  Photo shows from L-R: Genetron PCO Jocelyn Panen, EDC SVP Agnes de Jesus, Paul Aquino, Gina Lopez, Genetron President Genovevo Sebastian, and Bantay Kalikasan OIC John Paul Balayon