MANILA, Philippines — The contractors of Service Contract (SC) 72 in the West Philippine Sea have invested $490,000 or over P25 million to redo survey works, which is expected to be completed by the second quarter.
The consortium composed of Forum Energy Ltd. and Monte Oro Resources and Energy is currently undertaking 3D seismic data for the Sampaguita gas discovery, PXP Energy Corp. said in its definitive information statement.
The broadband and pre-stack depth migration reprocessing of the data with DownUnder GeoSolutions started in October last year.
“The reprocessing work is expected to cost around $490,000, including quality control supervision, and will be completed within the second quarter of 2019,” it said.
This activity is necessary before it can start drilling within the prospect.
The group hopes to resume exploration and drilling works in the Sampaguita discovery, which has the potential to contain approximately 2.5 trillion cubic feet of recoverable gas and could be the country’s new source of gas as replacement for the Malampaya project.
The contract for the Malampaya gas field in northwest Palawan will expire in 2024, but this can be applied for extension with the Department of Energy (DOE).
Operating since 2001, the Malampaya gas project supplies fuel to around 40 percent of gas-fired plants in Luzon namely the Ilijan, Sta. Rita plant, San Lorenzo, San Gabriel and Avion plants – which supply 3,211 megawatts (MW) to the Luzon grid.
Earlier, the consortium announced plans to spend $80 million to $100 million, roughly P4 to 6 billion, over a two-year period to find the country’s new Malampaya project.
Its exploration work program includes geotechnical surveys and the drilling of two wells in the Sampaguita gas discovery and 3D seismic surveys for the North Bank Prospect north of Sampaguita.
It had asked the Philippine government, through the DOE, to lift the force majeure imposed on SC 72 in December 2014 so it can implement its work program.
The request follows the Philippines-China cooperation on joint oil and gas development signed in November last year. Both nations have one year to further discuss plans on how to pursue joint activities.
PXP Energy holds a direct and indirect interest of 78.98 percent in Forum, which in turn has a 70 percent participating interest in SC 72 located in Northwest Palawan.
This means PXP Energy has a total economic interest of 53.1 percent in SC 72.