PNOC-EDC bags $13.7-M overseas drilling contract

PNOC-Energy Development Corp. (PNOC-EDC), the publicly-listed geothermal development arm of state-owned Philippine National Oil Co., has bagged a $13.7- million drilling contract in Papua New Guinea .

PNOC-EDC said it has started the drilling activities for Lihir Gold Ltd. (LGL) of Papua New Guinea .

The contract involves the drilling of 17 geothermal and dewatering wells over a 10- month period.

LGL, formerly known as Lihir Management Corp., sources part of its power requirements for its gold mine and processing facility from geothermal energy.

According to LGL chief executive officer Arthur Hood, geothermal power would supply 75 percent of the company’s power requirements this year or approximately 75 MW.

Hood said it is looking at the possibility of expanding further its power plant’s capacity.

The company official said it continues to explore for further geothermal steam reserves to meet the additional power needs for increased future gold processing capacity.

LGL’s gold mine and processing facility in Lihir island, New Ireland Province of Papua New Guinea is one of the largest gold mines in the world.

So far, this project is PNOC-EDC’s fifth drilling contract with LGL since it started engaging PNOC-EDC’s drilling services in 1999.

Last year, PNOC-EDC completed its fourth drilling contract with LGL worth about $5.7 million. The 12-month drilling contract in 2006 involved the drilling of 15 geothermal and dewatering wells in Lihir.

Aside from being the Philippines’ leading producer of geothermal energy, PNOC EDC is also the country’s largest provider of onshore drilling services. 

It maintains a highly experienced drilling division to man its complement of seven on-shore drilling rigs. In 1977, it started exporting its drilling services for an oil and gas drilling contract in Indonesia .

It has since then deployed drilling rigs and drilling consultants and rig maintenance specialists to Indonesia and Papua New Guinea . 

In 2003, it was contracted by the Bangladesh Petroleum and Exploration Co. (BAPEX) for the rehabilitation of a drilling rig. In the Philippines , PNOC EDC counts Chevron (formerly Philippine Geothermal, Inc.) as among its major clients.