Offers to develop Malampaya oil leg expected in February
Business World, Tuesday, January 11, 2005
Foreign firms which have expressed interest to explore for oil in the Malampaya natural gas field are expected to firm up their offers by end-February.
Philippine National Oil Co. (PNOC) President Eduardo V. Mañalac yesterday said his firm is continuously talking to potential developers of the oil reserves, abandoned as not viable by Malampaya project consortium.
"There were many companies who acquired data from us to study them. They are expected to give their decision whether to develop it by end of next month," Mr. Mañalac said. "Hopefully by first quarter we'll have clearer picture whether oil reserves will be developed or not,"
Energy Secretary Vincent S. Perez, Jr., has said three foreign firms are keen on exploring for oil in Malampaya.
The Malampaya project is a joint venture of Shell Philippines Exploration BV (Spex), Chevron Texaco and the government through PNOC, which has a 10% stake in it. The PNOC chief said Spex has assured the government it will cooperate with anyone who wants to develop the reserves.
Mr. Mañalac earlier said that PNOC decided to hold off reviewing the viability of the abandoned reserves and instead aggressively pursue negotiations with a potential investor. PNOC-Exploration Corp. was tasked to handle the talks.
He said the government wants to find a way to exploit the Malampaya reserves, estimated to be around 25 million to 30 million barrels, and that it is looking to pump oil by 2006.
The government said the Malampaya consortium abandoned the oil leg because the reserves were small. SPEX's and Chevron's contract allows it to abandon the project upon its discretion, especially if they no longer find it to be financially beneficial.
The Malampaya consortium is undertaking a $4.5-billion gas-to-power project involving natural gas discovered off northwest Palawan. Located in the South China Sea, Malampaya is estimated to contain some 2.6 trillion cubic feet of natural gas.
It is the largest natural gas development project in Philippine history and is one of the largest foreign investments in the country.
Foreign firms which have expressed interest to explore for oil in the Malampaya natural gas field are expected to firm up their offers by end-February.
Philippine National Oil Co. (PNOC) President Eduardo V. Mañalac yesterday said his firm is continuously talking to potential developers of the oil reserves, abandoned as not viable by Malampaya project consortium.
"There were many companies who acquired data from us to study them. They are expected to give their decision whether to develop it by end of next month," Mr. Mañalac said. "Hopefully by first quarter we'll have clearer picture whether oil reserves will be developed or not,"
Energy Secretary Vincent S. Perez, Jr., has said three foreign firms are keen on exploring for oil in Malampaya.
The Malampaya project is a joint venture of Shell Philippines Exploration BV (Spex), Chevron Texaco and the government through PNOC, which has a 10% stake in it. The PNOC chief said Spex has assured the government it will cooperate with anyone who wants to develop the reserves.
Mr. Mañalac earlier said that PNOC decided to hold off reviewing the viability of the abandoned reserves and instead aggressively pursue negotiations with a potential investor. PNOC-Exploration Corp. was tasked to handle the talks.
He said the government wants to find a way to exploit the Malampaya reserves, estimated to be around 25 million to 30 million barrels, and that it is looking to pump oil by 2006.
The government said the Malampaya consortium abandoned the oil leg because the reserves were small. SPEX's and Chevron's contract allows it to abandon the project upon its discretion, especially if they no longer find it to be financially beneficial.
The Malampaya consortium is undertaking a $4.5-billion gas-to-power project involving natural gas discovered off northwest Palawan. Located in the South China Sea, Malampaya is estimated to contain some 2.6 trillion cubic feet of natural gas.
It is the largest natural gas development project in Philippine history and is one of the largest foreign investments in the country.
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