Burgundy to invest $173 M for oil exploration in Malampaya
() - September 25, 2008 - 12:00am

Burgundy Global Exploration Corp. (BGEC) will be making an initial investment of $173 million for its oil exploration activities at the Camago-Malampaya oil field.

The Camago-Malampaya oil and gas fields in northern Palawan has the potential to support the operations of gas-fired power plants with a total capacity of 3,000 megawatts (MW) for over 20 years with an estimated maximum recoverable reserves of 3.2 trillion cubic feet.

The oil potential was placed at 20,000 to 40,000 barrels of oil per day, or roughly 20 to 50 million barrels of oil annually.

BGEC has acquired an 85-percent stake in the share of Philippine National Oil Co.-Exploration Co. (PNOC-EC) in the oil leg reportedly worth $700 million.

PNOC-EC said oil is definitely present in the area but it still cannot be estimated how much is required for the entire operation.

“Only after a thorough study and further exploration will we know what has to be done, and how much additional funding is required,” PNOC-EC director Eduardo Hernandez said.

Hernandez, however, warned that they have to start drilling and pumping within the next two years. The gas fields in the Camago-Malampaya area is over the oil fields. Thus, the less the volume of the gas fields, the less oil can be pumped out of the oil fields due to the lack of pressure from the gas field.

Burgundy is a Filipino-owned corporation and a member of the Burgundy Group of Companies, which runs, among others, Burgundy Realty Corp., Burgundy Asset Development Corp., Subic Hermosa Cyber City Development Corp., Fuga Island Holdings and Burgundy Realty Corp. — Ted Torres

BURGUNDY ASSET DEVELOPMENT CORP BURGUNDY GLOBAL EXPLORATION CORP BURGUNDY GROUP OF COMPANIES BURGUNDY REALTY CORP CAMAGO-MALAMPAYA EDUARDO HERNANDEZ EXPLORATION CO FUGA ISLAND HOLDINGS AND BURGUNDY REALTY CORP OIL PHILIPPINE NATIONAL OIL CO SUBIC HERMOSA CYBER CITY DEVELOPMENT CORP
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