PNOC unit invited to bid for drilling project in Australia

The PNOC-Energy Development Corp. (EDC) has its sights set on an oil and gas drilling project in Australia.

Company chairman and president Sergio Apostol said EDC has been invited by the South Australian Northern Territory Oil Search (SANTOS) Ltd. Oil Co. to submit a proposal for a three-year oil and gas drilling contract in Australia.

"We were actually recommended to SANTOS by the Lihir Management Co. (LMC) of Papua New Guinea (PNG)," Apostol said.

According to Apostol, the invitation from the Australia-based firm is an indication of its confidence on the capabilities of EDC.

"Not everyone gets invited to bid. You should be able to establish a good track record in drilling services. EDC’s drillers have proven that they are a valued asset anywhere in the world," he added.

EDC’s drilling services have been tapped by LMC for several drilling projects in PNG. "When some of LMC’s key staff joined Australia’s SANTOS and an opportunity for a new drilling project was opened, the Australian firm lost no time in contacting EDC to joint the bidding," the EDC chief recalled. "SANTOS is very much aware of our drilling expertise since we have worked with their key staff in PNG."

The state-owned firm started drilling operations on Lihir Island, New Ireland Province in PNG in 1999. It is now on its third contract with LMC for the drilling of geothermal, steam relief, and dewatering wells.

If EDC will bag the SANTOS project, Australia will be the third country to test the state-owned firm’s drilling expertise.

EDC has several drilling contracts in PNG and Indonesia. In the Philippines, EDC’s major client is Philippine Geothermal Inc. (PGI), an affiliate of US-based UNOCAL.

Last year, EDC’s international drilling operations registered a revenue growth of 65 percent compared to 2000. The company not only sent rigs to Indonesia and PNG but also deployed drilling consultants and rig maintenance specialists to both countries.

The SANTOS project, he said, will strengthen its hold as a global player in the drilling industry. "We have already organized a marketing team from our drilling division to identify companies with drilling projects and participate in the drilling rig tender process," Apostol said.