Unocal acquires 15% stake in oil exploration project

Unocal Corp. has acquired a 15-percent share in the oil exploration project in the Sulu Seas off the Sabah boundary.

The Unocal acquisition came from 45 percent share of Arco Phils. in the oil exploration consortium which includes Basic Consolidated Inc., Oriental Petroleum and Mineral Corp., South China Resources Inc., Preussag Energie Gmbh of Germany, and the Malaysian Mining Corp. Other members are TransAsia Oil and Energy Development Corp., the Philodrill Corp., PetroEnergy Resources Corp., Philex Mining Co., Anglo-Philippines Corp., Universal Robina Corp., and San Jose Oil Co.

Unocal is a subsidiary of the Unocal Co. of the USA. It is involved in power generation through Philippine Geothermal Inc. (PGI).

The consortium has assured the Department of Energy (DOE) of its full commitment to drill at least one well in Service Contract 41, Block B (SC41B) in the Sulu Sea. It will drill a second well should the initial well prove positive.

The new oil drilling activity comes at time when the prices of crude oil are at record levels.

Arco said there is a high geological factor and a higher probability for oil over natural gas, based on their seismic study. --