MANILA, Philippines - Oil and gas exploration firm Basic Energy Corp. is setting aside P300 million to fund significant projects next year, its top official said.
Basic Energy chief executive officer Oscar de Venecia Jr. said the company’s board has approved next year’s budget to fund projects in the oil and gas and geothermal energy fields.
De Venecia said the company has developed a well-balanced portfolio consisting of short-term cash flow producing projects such as the Indonesia projects as well as long term, more economically robust projects such as the gas prospects in Mindoro and the geothermal project in Mabini.
He said these would ensure sustainability and translate to eventual growth for the company.
Basic Energy will spend P100 million out of the programmed budget for its project in Indonesia, particularly to drill 10 wells in Central Java.
“In the company’s overseas foray, in Indonesia, Basic Energy thru its subsidiary, Grandway Group Ltd. (Hong Kong) and Grandway’s operating arm in Indonesia, PT Basic Energy Solusi, will spend at least P100 million to complete a 10-well redevelopment drilling in Central Java,†De Venecia said.
The objective is to produce low-risk reserves from the shallower sands within the field.
If successful, the wells would open up more opportunities in other parts of the field,†De Venecia also said.
Basic Energy has spent some P46 million to drill the first two wells in partnership with Petrosolve Malaysia. Pre-production work should be completed this year, De Venecia said.
Basic Energy, meanwhile, is allocating P20 million for its three percent share in the drilling of a sizeable gas prospect in Mindoro, the Progreso prospect in Service Contract 55.
In the geothermal sector, Basic Energy said it would commence geological exploration and other geo-scientific studies for geothermal concessions in Batan, Benguet and Camarines Sur.
On top of the three projects, the company is also finalizing negotiations with the Department of Energy to acquire a fourth concession located in Sorsogon.