Energy Undersecretary Eduardo Manalac said under the Philippine Energy Plan (PEP), the drilling of at least 51 new wells both in onshore and offshore exploration sites, would be encouraged over the next 10 years.
"We are targeting to sign at least four to five oil and gas exploration contracts each year," he said. "This is an ambitious target but we continue to encourage investors to look at the potential exploration areas in the country."
Last month, the DOE signed the first offshore and the United Kingdom and Gas to Grid of Singapore.
"We hope to sign two or more wells within the year," Manalac said, noting that some local exploration companies like Forum Inc. have also signified interest to expand their exploration activities in the coming days. Forum earlier said it wants to extend its operations from Central Luzon up to the Manila Bay area.
He said the interested investors are eyeing potential exploration areas in Northwest Palawan, Sulu Sea, Northern Cebu and Central Luzon.
In the next few days, the DOE expects to sign another exploration contract with Malaysia’s Pertoliam Nasional Berhad (Petronas) covering the Cherry-Tablas exploration area in offshore Mindoro.
Manalac said more oil exploration firms will be coming in through the Philippine Public Contracting Round (PCR-I) wherein 46 exploration blocks will be opened for bidding by March 5.
Based on the PEP, a total of 30 petroleum wells (at an average rate of three wells a year) is expected to be drilled in the Luzon region.
Domestic oil production is projected to reach nine million barrels (mmb) in 2013 from only 0.2 MMB in 2004. However, oil production is expected to gradually decline from 10.3 MMB in 2005 to 4.7 MMB in 2008 primarily due to the depletion rate of the Malampaya field. It is envisioned that commercial production from a new oil field will then start in 2009.
The $4.5-billion Malampaya deep water gas-to-power project is one of the country’s biggest oil exploration contracts. About 10 percent of this project is being held by the government.