Oil find to boost economy — Palace

Malacañang said yesterday it was extremely pleased with the recent discovery of oil beneath the Malampaya gas fields off Palawan, which could provide a major boost to the economy in the long term.

Presidential Spokesman Rigoberto Tiglao said a steady oil supply would push down pump prices.

"We are very happy about it," he said. "The oil find could have a major impact on our economy in the long term."

He pointed out that the oil discovery will be a major topic of discussion at the National Economic Summit to be convened by President Arroyo on Dec. 10.

Tiglao said Energy Secretary Vincent Perez briefed the President and the rest of the Cabinet on the oil find by Shell Philippines Exploration BV (SPEX).

The discovery is the country’s most significant in 30 years, yielding about 8,000 barrels of oil per day (BOPD) during an initial oil well test of a rim below the Malampaya gas field.

Tiglao said the task of determining the feasibility of subsequent long-term commercial oil production will be made easier since platforms in the gas fields are already in place.

"It would be easier to lift the oil. They will be using the same platforms and drilling tubes designed for gas," he said.

Last October, Shell opened the $4.8-billion Malampaya Deep Water Gas-to-Power project, consisting of a 500-kilometer natural gas pipeline that fed fuel for the 1,000-megawatt power plant in Sta. Rita, Batangas.

The government said the use of indigenous sources of fuel, particularly the natural gas from Malampaya field, will make the country 52 percent self-sufficient in energy.

Shell’s recent oil discovery is expected to move the country a step closer to realizing independence from imported fuel sources.

Tiglao said the December economic summit will be coming up with immediate responses to sustain the economic growth of the country in the first three quarters of the year.

"We have to come up with measures to sustain the momentum," he said. – Marichu Villanueva