MANILA, Philippines - Energy Secretary Jose Rene Almendras has ordered a review of all petroleum service contracts entered into by the department over the past years.

Almendras told reporters that this move is consistent with President Aquino’s mandate of a level playing field on all government projects.

He said this will also be compliant with the overall objective of promoting transparency in all transactions entered into by the government, including the energy sector.

"We are reviewing all the service contracts. I have announced [to] the agencies already. I want to understand all the awarding of the service contracts,” he said.

The DOE recently signed an agreement with UK-based Forum Energy Plc to finally convert its geophysical survey exploration contract (GSEC) 101 to Service Contract 72.

Almendras said this contract will also be looked into since there were controversies before it was awarded.

Since 2005, the department has engaged in public contracting rounds in an effort to make the bidding of energy contracts more transparent.

So far, there are 13 petroleum service contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts worth well over P1 billion in investments were awarded by the department.

Over a hundred renewable energy service contracts were also signed by the DOE in recent  months.

Alemendras said if irregularities are proven, the department will take the appropriate actions.

Sources said reviewing existing contracts would  send the wrong signals to investors as this may lead to changes in government rules and agreements.

But the DOE is confident that the review will only be viewed as part of the new administration’s move to weed out corruption in the system.