Burgundy to invest $715 M in Camago-Malampaya

Burgundy Global Exploration Corp. (BGEC) has committed to invest a minimum $715 million (roughly P34.32 billion) in the oil leg of the Camago-Malampaya joint venture project with the Philippine National Oil Corp.-Exploration Corp. (PNOC-EC).

The Camago-Malampaya oil leg is based on the participating agreements wherein BGEC controls 84.9 percent equity and PNOC-EC accounts for 15.1 percent.

In a report, BGEC said that of the total amount, $562 million will be allocated for development costs and $153 million for first year expenses.

“Burgundy Global Exploration commits to achieve first oil not later than 22 months after signing the participating agreement,” it added.

The Camago-Malampaya oil and gas fields located in northern Palawan has a gas potential to support the operation of 3,000 megawatts (MW) of gas-fired power plants for over 20 years with its 2.5-3.2 trillion cubic feet maximum recoverable reserves.

Shell and Chevron operates the gas fields while Burgundy and PNOC-EC will work on the oil leg.

The oil potential was placed at 20,000 to 40,000 barrels of oil per day, or roughly 20 to 50 million barrels of oil yearly.

PNOC-EC director Eduardo Hernandez said it is critical to pump oil within the 22-month period.

The gas fields in the Camago Malampaya area is over the oil fields. The less the volume of the gas fields, the less oil can be pumped out of the oil fields due to the lack of pressure from the gas field.

BGEC is a Filipino-owned corporation and a member of the Burgundy Group of Companies, which runs, among others, Burgundy Realty Corp., Burgundy Asset Development Corp., Subic Hermosa Cyber City Development Corp., Fuga Island Holdings and Burgundy Realty Corp.  — Ted Torres