ExxonMobil earmarks $500 million for oil exploration in RP

MANILA, Philippines - The local unit of US oil and gas giant ExxonMobil may spend around $500 million for its initial exploration activities in the Philippines, the country’s top energy official said.

Energy Secretary Jose Ibazeta told reporters that based on his estimates, the US-based multinational will likely spend this much for its medium term drilling program.

ExxonMobil is about to drill its third well and had spent about $100 million each well.

ExxonMobil is the lead contractor of Service Contract 56 along with other consortium members Mitra Energy Ltd. (25 percent) and BHP Billiton International Exploration Pty Ltd. (25 percent).

SC 56 covers an area of 8,200 square kilometers located about 900 kilometers southwest of Manila and 200 kilometers northwest of Bongao, the capital of Tawi-Tawi province.

ExxonMobil is scheduled to continue their petroleum exploration commitment with the Department of Energy by drilling the third well in the deepwaters of the South Sulu Sea utilizing the semi-submersible drilling rig West Aquarius.

ExxonMobil’s much-anticipated drilling operations came in the wake of the positive outcome of Nido Petroleum Ltd.’s Tindalo oil field which flowed its first oil output last May 30.

ExxonMobil has already completed drilling of the first two wells, Dabakan-1 and Banduria-1, but data processing is still ongoing.

Ibazeta said oil and gas drilling activities in Philippine waters should be one of the major items that should be focused on by the next administration.

“There are ongoing activities that should be pursued like these drilling activities. There are a lot of investors coming in,” he said.

But foremost, he said the incoming Aquino administration might want to take a closer look on how to improve further the development of renewable energy resources.

“The next phase should be renewable energy. We need to promote it. We should be able to make it work so it will help bring down costs of power. Most especially, we should be able to realize its long lasting impact on environment, RE being a clean source of energy,” he said.

The energy said clean cut policies on implementation of monitoring of generating plants’ operations should also be one of the main areas to be looked at.