"We are in the final stage of negotiation with Petronas. We hope to seal an agreement before the end of this month," a PNOC-EC source privy to the ongoing talks on the drilling project said. PNOC-EC is a subsidiary of state-owned Philippine National Oil Co. (PNOC).
Last April, Energy Undersecretary Eduardo Manalac told The STAR that Petronas and PNOC-EC are "close to making a deal to be able to drill those prospects in offshore Mindoro".
The source confirmed that PNOC-EC has been in negotiations with Petronas for several months now. "We do not want to derail the talks so we decided to keep it until we arrive at an agreement," the source said.
According to Manalac, the deal will boost the country’s drilling program for this year. "What we really need is more drilling," he said.
PNOC-EC, a publicly-listed oil and gas exploration firm, has been scouting for strategic partners for its exploration contract in offshore Mindoro particularly in the so-called Cherry and Tablas drilling areas.
In August 2002, PNOC-EC completed its seismic survey for some 960 kilometers in the said exploration area.
At the onset of 2003, PNOC-EC had started to intensify its operation in oil, gas and coal exploration in preparation for the company’s planned shares offering slated within the year.
The exploration of Cherry and Tablas will need at least $5 to $10 million capital for every well.
Early this year, EC has also urged Petronas 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 the Geophysical Survey and Exploration Contract (GSEC) No. 73.