More oil search activities expected

The Department of Energy (DOE) is expecting more oil drilling activities to start in the remaining months of the year.

Energy Undersecretary Guillermo Balce said one drilling activity in Panay Island will start by the end of this month.

Balce said they also expect another drilling of a production well to start in the Galoc area in Western Palawan.

Towards the end of the year, Balce said they are also expecting two more wells in Ragay Gulf and Tanon Strait in Cebu and Negros to be drilled.

“The prospects of oil drilling in the country are very bright.  We expect all these activities to help us achieve oil self-sufficiency in the near future,” Balce said.

 Early this month, Shell Philippines Exploration (SPEX) reported that it had safely and successfully completed the first 3D seismic survey off the deep waters of northeast Palawan.

SPEX said it is part of a work commitment under Service Contract 60 to explore for oil and gas within the one million-hectare acreage. 

The survey, the company said, enhances understanding the prospectivity of the license area and will determine the need to further explore in the block.

SC 60 is operated by SPEX on behalf of joint venture partners South China Resources, Inc. (SOC) and Kuwait Foreign Petroleum Company Ksc. (KUFPEC).

Specifically, SC 60 also includes a 25-year production term in the event of a commercial discovery of petroleum. SC 60 partnership is comprised of SPEX with a 55-percent stake, KUFPEC Phils., 35-percent and SCR Holding, 15 percent.

The SPEX-led consortium intends to spend about $3 to $5 million for the seismic study alone.

For the seven-year exploration period of the said service contract, the consortium committed a minimum investment of $24 million.

 DOE approved the application of the consortium for conversion of SC 60 from geophysical survey and exploration contract 99 (GSEC) last January.

SC 60 covers a relatively unexplored area of 1.8 million hectares in Northeast Palawan.