Philex affiliate allots $10M for Mindoro oil drilling

MANILA, Philippines - Pitkin Petroleum Plc., an affiliate of Philex Petroleum Corp., has earmarked around $10 million for an exploratory drilling in Mindoro next year.

Seismic data will also be acquired for an offshore project in Northwest Palawan while waiting for the awarding of new service contracts (SC), a company executive said.

“We are preparing to drill in SC 53 in onshore Mindoro next year,” Arturo Morado Jr., managing director and CEO of Pitkin Petroleum, told reporters.

“Probably between $5-10 million,” he said when asked how much they will spend for the exploratory drilling.

SC 53 covers an area of 7,240 square kilometres, mostly onshore. It is adjacent to the Palawan Basin, which hosts all the producing oil and gas wells in the Philippines.

Given numerous exploration works in the oil and gas prospects in the country and worldwide, Morado said the market for drill rigs is tight.

“Onshore rigs are probably better choices than the offshore,” he said, adding that drilling will start in the second half next year.

Numerous oil and gas projects are being pursued here and abroad because of escalating oil prices.

In 2010, the company completed a 200-kilometer 2D onshore seismic program.

Pitkin is the operator of the oil block with a 70 percent stake, with the remaining 30 percent held by listed Philodrill Corp., Basic Consolidated Inc. and Anglo Philippine Holdings Corp.

Pitkin Petroleum, which is 18.46-percent owned by Philex Petroleum, is also pursuing the Octon block in Northwest Palawan.

“SC 6A is in offshore Northwest Palawan, we are planning to acquire seismic [data] there next year,” Morado said.