Spex-led group to drill for oil, gas in Palawan
The Shell Philippines Exploration B.V. (Spex)-led consortium will start early next year drilling activities at service contract 60 in
Spex has teamed up with Kuwait Foreign Petroleum Exploration Co. (KUFPEC)
“I think they found good prospects,” Energy Undersecretary Guillermo Balce said.
According to Balce, the group started last week its 2D seismic survey covering 2,000 kilometers of the area.
“The seismic vessel Veritas Voyager is now in
Based on the plan, the SC 60 consortium will undergo a 3D seismic survey after completing the 2D survey to determine the oil and gas potential of the area.
The consortium intends to spend between $3 million to $5 million for the seismic study alone.
For the seven-year exploration period, the consortium committed a minimum investment of $24 million.
The DOE approved the application of the consortium for the conversion of SC 60 from a geophysical survey and exploration contract 99 (GSEC) last January.
SC 60 covers a relatively unexplored area of 1.8 million hectares in
GSEC 99 was awarded to the consortium of South China Resources in November 2000. In 2002, Spex assumed a 50 percent stake in the project. KUFPEC became part of the group when it acquired an undisclosed stake from Spex.
SC 60 also includes a 25-year production term in the event of a commercial discovery of petroleum.
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