MANILA, Philippines - The Department of Energy (DOE) is reviewing plans for bidding out the exploration for Recto Bank, formerly known as Reed Bank, next year.
“The study will take years. Hopefully, next year we can have some definite indications on that... the valuation of the seismic surveys,” said Energy Secretary Jose Rene Almendras.
He noted that the government has explored the bank since 1976 and issued six service contracts. Seven wells have been drilled in the area since then.
Almedras said that so far, initial studies have borne results favorable to more exploration.
“The findings helped us decide to do more explorations and to do better analysis. Initial findings are very encouraging,” he said.
At present, Forum Energy Plc is the only existing service contractor within the Recto Bank.
The first petroleum contract in Recto Bank was awarded by the Ministry of Energy in 1975.
Forum Energy has a license to explore an area of 8,800 Km2 which contains the Sampaguita Gas Discovery with mean gas-in-place of 3.4 TCF and a number of additional leads.
Last month, Malacañang started referring to Reed Bank as Recto Bank to assert the country’s territorial claim to the area.
Recto Bank is located some 80 nautical miles from Palawan and about 500 nautical miles from China.
The Philippines, China, Brunei, Malaysia, Taiwan and Vietnam claim all or part of the disputed territories in the West Philippine Sea.