PNOC-EDC hikes 2002 drilling budget by 150%

The PNOC-Energy Development Corp., a wholly-owned subsidiary of the Philippine National Oil Co. (PNOC), will more than double its budget for its drilling program this year, company chairman Sergio Apostol said.

Apostol said they will set aside P1.68 billion for drilling operations this year, 150 percent higher than last year’s total drilling expenditures of P675 million.

PNOC-EDC, one of the most aggressive subsidiaries of PNOC, is programmed to drill at least 15 new wells in different parts of the country.

He said part of the budget would also finance a number of maintenance works for 32 existing wells within this year.

According to Apostol, half of the new wells will be in a geothermal area in Northern Negros. The project is scheduled to come on stream by 2004.

The remaining drilling activities will involve other operating projects and new geothermal prospects.

Apostol said PNOC-EDC will pursue exploration activities in Mt. Loi in Buraen, Leyte; Cabalian in Southern Leyte; and Rangas-Tanawon in Sorsogon.

"We are accelerating our drilling program this year as we go full swing with the exploration and development of our new geothermal prospects," he said.

Last year, the company drilled only five wells and did maintenance work on 14 existing well to improve their performance.

In addition to these drilling activities, he said EDC was recently awarded a third drilling contract by the Lihir Management Co. of Papua New Guinea. The new contract will involve at least 16 wells.

The contract with Papua New Guinea is expected to raise an additional revenue of about $4.2 million or about P200 million for the company.

PNOC-EDC owns and operates eight on-shore drilling rigs that can undertake even the most aggressive exploration and development program in the region.

Since 1999, the company chairman said they have been exporting their drilling expertise to various countries in the world. – Donnabelle Gatdula