MANILA, Philippines - ExxonMobil Exploration and Production Philippines B.V. said yesterday it is encouraged by its hydrocarbon find while drilling its first deepwater exploration well in the Philippines.
Ian Fischer, managing director of ExxonMobil Exploration, told reporters that this is a significant finding on its Service Contract (SC) 56 in South Sulu Sea.
“Logs taken at the Dabakan-1 well indicate that we encountered reservoir sands and hydrocarbons. The well will be drilled further to a total depth of approximately 5,000 meters, setting the record for the deepest well drilled in the Philippines,” he said.
With this positive development, Fischer said they would invest another $100 million for the drilling of the second well in SC 56 within the next few weeks.
“Data analysis and additional studies are being conducted to evaluate the potential of the find,” he said.
ExxonMobil Exploration had already invested $100 million for the drilling at the Dabakan-1 well which commenced Oct. 11.
“SC-56 is part of the Philippine government’s efforts to encourage investments in the energy sector,” Fischer said.
The Dabakan-1 well is located about 65 kilometers from Mapun Island, a municipality in Tawi-Tawi Province.
ExxonMobil Exploration is the lead operator of SC-56 with a 50 percent interest. Mitra Energy (Philippines SC-56) Ltd and BHP Billiton Petroleum (International Exploration) Pty Ltd each have a 25 percent interest.
For his part, Energy Secretary Angelo Reyes said he “recognized the hard work rendered by the contractors in their drilling operations. “We also would like to thank them for their strong support to our energy investment program.”
Reyes said the utilization of indigenous energy resources is paramount to the country’s energy self-sufficiency quest and the contractors’ involvement in the energy sector is a good indicator of the country’s investment climate.
During this exploration operation, Reyes said all risk is borne by the contractors at no cost to the Philippine government.
“We look forward to further working with ExxonMobil under SC 56,” Reyes said.
Before Dabakan 1, the country has found significant oil and gas reserves in Malampaya and Galoc fields, both in offshore Palawan.