Energy Undersecretary Guillermo Balce, in an interview, said the consortium which bagged Service Contract (SC) 46 would likely push through with drilling activities in the second quarter next year "after it received encouraging results of seismic tests conducted last year."
Balce said the group is already finalizing the legwork for the drilling proper. "Preparations for the drilling are ongoing, including environmental, social preparations and local government unit consultations."
SC 46 allows the group to explore oil and gas prospects near Tañon Strait in Central Visayas.
Based on its agreement with the DOE, the consortium will invest $12.7 million for the seven-year duration of the contract.
If the consortium finds an oil or gas reservoir of commercial quantity, the they would be given another 25 years for the production period.
For the past years, the government has been actively encouraging oil and gas exploration projects in the wake of surging oil prices in the world market.
According to Energy Secretary Raphael P.M. Lotilla, the entry of Kuwait Petroleum in SC 46 will boost the country’s efforts to develop indigenous energy resources.
"Kuwait Petroleum is Kuwait’s arm in exploration and development of small oil and gas reserves in foreign countries. We are very pleased that the company has taken interest in the Philippines as it pursues expansion of operations worldwide," Lotilla said.
Kuwait Petroleum is engaged in exploration, development and production of crude and natural gas. It has operations in South Africa, Indonesia and Tunisia.
DOE awarded the contract to Japex in February 2005. The group recently completed initial seismic studies and presently processing and evaluating the data it gathered.
In awarding the SC to Japex, the DOE took note of the company’s extensive international exposure in oil and gas exploration. In the 1990s, Japex started production in the Daleel field in Oman, ABS field in North Sumatra and Lufeng 13-1 field in South China Sea.