PNOC president Eduardo Mañalac said they are now holding initial discussions with Lundin Oil and Tap Oil, both Europe-based oil exploration companies for a joint venture in service contract (SC) 59 or the West Balabac prospect.
At present, SC 59 is 100-percent operated by PNOC-Exploration Corp., one of the subsidiaries of PNOC. The two European firms, Mañalac said, are currently studying the prospects in the said area.
"They’re looking at the data. We’re at the early stage of discussions with these firms," he said.
At the same time, PNOC is also in talks with Nido Petroleum Exploration Corp. for another possible farm-in agreement in West Calamian near Palawan under service contract (SC) 58.
The West Balabac area lies off the southwestern tip of Palawan. South of the area is the Malaysian border where several offshore oil and gas fields trending northeast are currently in production off the coast of Sabah and Brunei.
Recently, Murphy Oil discovered the giant Kikeh field, estimated to contain 400-700 million barrels of oil in the deepwater area of Sabah, considered as Malaysia’s first deepwater discovery.
Although there is still no production on the Philippine side, PNOC’s interpretation shows that the active petroleum system existing in offshore Malaysia and Brunei continues northward into the western Balabac area.