ExxonMobil to invest $100 million in Sulu Sea well

MANILA, Philippines - US-based ExxonMobil, the world’s largest publicly-traded international oil and gas company, will pour in about $100 million for the drilling of an exploratory well in Service Contract 56 at the Sulu Sea scheduled within the next two months, a company official said.

ExxonMobil Exploration and Production Philippines B.V. managing director Ian Fischer told reporters that the drilling of the first well could start by the end of the month or early October.

“It’s a very expensive operation. It would be the deepest water depth ever drilled in the Philippines - 1,800 meters deep of water and the longest well drilled in the Philippines, about 5,000 meters,” Fischer said.

He said the drilling activity will kick off once the drilling rig arrives in the country.

 “We’re targeting (to drill) later this month or early next month. But again it’s a function of when we have everything ready to go. When the rig is available, hopefully it’s soon,” he said.

SC 56 is a joint undertaking of Exxon and Mitra Energy, both holding 50 percent stake in the contract.

Exxon mobil is a leading international energy company whose subsidiaries have operations in nearly 200 countries and territories worldwide. It has major exploration and production operations in Australia, Indonesia, Malaysia and Papua New Guinea and has a significant refining and marketing presence in more than 12 countries in the region.

Malaysia-based oil and gas exploration firm Mitra Energy entered into a farm-in agreement with ExxonMobil for SC 56 in 2006. The Energy Department approved the farm-in contract last year.

The SC 56 area presently covers 8,620 hectares in the Sulu Sea, considered one of the most prospective areas for oil and gas exploration as indicated by the previous drilling activities conducted in the area.