Petronas to hunt for oil in Mindoro; will invest $12.5M
Malaya, Jan. 11, 2005
Malaysian oil company, Petronas has won rights to look for oil and gas at an offshore block in the Philippines with the PNOC Exploration Corp.
Petronas said it has budgeted $12.5 million, P700 million, for the project.
The two signed a deal to drill one exploratory well each in the Mindoro block, and hold the option to drill another well or acquire seismic data.
"The contract also calls for the partners to complete their work program during the first two years of the contract period, after which the contractors will decide whether to proceed," the statement said.
Petronas Carigali Overseas Sdn. Bhd., the overseas exploration arm of Petronas, holds an 80 percent interest in the 14,667 sq km (5,661 sq mile) block, and PNOC the balance 20 percent.
This is the third petroleum service contract signed in recent weeks after the Supreme Court last month declared the Mining Act constitutional.
The agreement was signed by Petronas President and CEO Tan Sri Dato Sri Mohd Hassan bin Marican, Energy Secretary Vincent Perez and PNOC-EC President and CEO Eduardo Mañalac.
"This new agreement has long been in the waiting. Now that the road has been paved clear, we look forward to the drilling of one of the most attractive exploration areas in the country," Perez said.
The work program under the Service Contract will be completed during the first two years, after which the contractors can decide whether to proceed with the subsequent phases of the exploration period in the Service Contract. Service Contract 47 exploration period is 7 years, consisting to 3 sub-phases. The first sub-phase is the first two years wherein the companies drill one Exploration Well with an option to either drill another 1 Exploration Well or acquire new seismic data. The expected Minimum Expenditure for the first two years is $3 million. The option exploration well or new seismic date can be credited to the commitment in the second sub-phase, should the Contractor elect to enter into the second phase.
The second phase is the third to fourth year wherein they would have to drill 1 Exploration well and acquire a minimum of 500 km of new seismic data. The expected minimum investment for the phase is $3.5 million.
The third sub-phase is the fifth to seventh year wherein the contractor have to drill two exploration well. It is expected to cost about $6 million.
After seven years, the contract could be extended for another 3 years upon justification.
It also has a 25-year development/production period renewable for a series of 5-year periods but not to exceed a total of 15 years.
The signing of the Offshore Mindoro Servie Contract marks another milestone for Petronas in its exploration activities in the Philippines following its previous efforts in the Cotabato Basin in Mindanao in 1995.
The DOE has awarded Service Contract 45 to China's South Sea Petroleum Holdings Limited to explore oil and gas in the Agusan-Davao Basin while Service Contract 46 was awarded to Japan Petroleum Exploration Co. Limited (Japex) for oil and gas exploration over the Tañon Straits in Negros Occidental.
Two other petroleum service contracts were awarded last year. These were Singapore-based firm Gas to Grid Pte. Ltd. in the Central Cebu area and British firm Premier Oil Philippines B.V. over the Ragay Gulf in the Bicol region and parts of Bondoc Peninsula in Quezon province.
Malaysian oil company, Petronas has won rights to look for oil and gas at an offshore block in the Philippines with the PNOC Exploration Corp.
Petronas said it has budgeted $12.5 million, P700 million, for the project.
The two signed a deal to drill one exploratory well each in the Mindoro block, and hold the option to drill another well or acquire seismic data.
"The contract also calls for the partners to complete their work program during the first two years of the contract period, after which the contractors will decide whether to proceed," the statement said.
Petronas Carigali Overseas Sdn. Bhd., the overseas exploration arm of Petronas, holds an 80 percent interest in the 14,667 sq km (5,661 sq mile) block, and PNOC the balance 20 percent.
This is the third petroleum service contract signed in recent weeks after the Supreme Court last month declared the Mining Act constitutional.
The agreement was signed by Petronas President and CEO Tan Sri Dato Sri Mohd Hassan bin Marican, Energy Secretary Vincent Perez and PNOC-EC President and CEO Eduardo Mañalac.
"This new agreement has long been in the waiting. Now that the road has been paved clear, we look forward to the drilling of one of the most attractive exploration areas in the country," Perez said.
The work program under the Service Contract will be completed during the first two years, after which the contractors can decide whether to proceed with the subsequent phases of the exploration period in the Service Contract. Service Contract 47 exploration period is 7 years, consisting to 3 sub-phases. The first sub-phase is the first two years wherein the companies drill one Exploration Well with an option to either drill another 1 Exploration Well or acquire new seismic data. The expected Minimum Expenditure for the first two years is $3 million. The option exploration well or new seismic date can be credited to the commitment in the second sub-phase, should the Contractor elect to enter into the second phase.
The second phase is the third to fourth year wherein they would have to drill 1 Exploration well and acquire a minimum of 500 km of new seismic data. The expected minimum investment for the phase is $3.5 million.
The third sub-phase is the fifth to seventh year wherein the contractor have to drill two exploration well. It is expected to cost about $6 million.
After seven years, the contract could be extended for another 3 years upon justification.
It also has a 25-year development/production period renewable for a series of 5-year periods but not to exceed a total of 15 years.
The signing of the Offshore Mindoro Servie Contract marks another milestone for Petronas in its exploration activities in the Philippines following its previous efforts in the Cotabato Basin in Mindanao in 1995.
The DOE has awarded Service Contract 45 to China's South Sea Petroleum Holdings Limited to explore oil and gas in the Agusan-Davao Basin while Service Contract 46 was awarded to Japan Petroleum Exploration Co. Limited (Japex) for oil and gas exploration over the Tañon Straits in Negros Occidental.
Two other petroleum service contracts were awarded last year. These were Singapore-based firm Gas to Grid Pte. Ltd. in the Central Cebu area and British firm Premier Oil Philippines B.V. over the Ragay Gulf in the Bicol region and parts of Bondoc Peninsula in Quezon province.
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