PNOC-EC seeks strategic partners for Mindoro venture

The PNOC-Exploration Corp., a publicly-listed oil and gas exploration arm of state-run Philippine National Oil Co. (PNOC), is looking for potential partners for its exploration contract in offshore Mindoro.

"This is part of our continuing effort to promote our exploration activities. We are willing to farm out shares in our Geophysical Survey and Exploration Contract (GSEC) 100 to interested investors. We are open for partnership," EC spokesman Rudolph C. Dimen said.

Dimen said they completed last August the seismic survey for an area covering 960 kilometers in the said exploration site.

According to Dimen, EC has been involved in various drilling activities in offshore Mindoro. "Before, we have already drilled two wells in the area under GSEC 60 and GSEC 88," he said.

"We believe that GSEC 100 may hold significant oil reserves outside of Northern Palawan, where a huge oil and gas reserve was discovered by Shell Philippine Exploration B.V., Texaco of US and PNOC-EC," he added.

Since the start of the year, EC has been intensifying its operation in oil, gas and coal exploration in preparation for its shares offering slated within the year.

"We need to enhance our operation so that investors will be encouraged to invest in our company," EC president Rufino Bomasang, in an interview, said.

PNOC-EC is preparing for its privatization which is expected to fetch some $500 million to $1 billion in proceeds.

Bomasang said aside from GSEC 100, they are also exploring two more oil and gas prospects, Cherry and Tablas in Offshore Mindoro.

The EC chief said they need to tap new partners for these two exploration projects. "We need partners for the projects," he said, noting that they would be needing at least $5 to $10 million for each project," he said.

He said some interested parties have indicated interest in the said projects. But the official declined to give the identities of the prospective investors. He, however, hinted that these are "foreign investors."

The exploration company, he said is also urging the Petroliam Nasional Berhad (Petronas), an oil conglomerate of Malaysia, to renew its interest in seven oil and gas prospects in Cotabato. Last year, EC had plans of pursuing a P220-million third exploratory well in the Cotabato basin in Mindanao.

The third well, Gansing I, is located in the Cotabato basin. The drilling project is covered by geophysical survey and exploration contract (GSEC) No. 73.

Since 1999, the EC has drilled two onshore wells in the area, namely: Sultan-sa-Barongis (SSB) 1 and SSB-2. Based on the EC records, an open-hole test conducted at SSB-1 yielded a stabilized natural gas flow rate of 186,000 standard cubic feet per day (SCFPD). SSB-2, on the other hand, also confirmed the presence of natural gas with a measured flow rate of about 270,000 SCFPD.