Government eager to make progress in oil and gas prospects

MANILA, Philippines — The government, through the state-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC), is raring to make progress in its oil and gas prospects to fuel the current administration’s push for the development of the country’s indigenous energy resources.

PNOC-EC holds interest in seven petroleum service contracts (SC) and three coal operating contracts (COC).

Out of the seven petroleum service contracts, it holds operatorship and 100-percent interest in three, namely SC 37 Cagayan in Cagayan Basin, and SC 57 Calamian and SC 59 West Balabac in offshore northwest Palawan.

PNOC-EC president and CEO Franz Josef Alvarez said the state-run company is preparing for the drilling of Chico-1 well and the remediation of Mangosteen-1 gas discovery well in SC 37.

The SC, which has an area of 2,200 square kilometers, covers the San Antonio gas field which produced three billion cubic feet of gas supplied to the three-megawatt (MW) San Antonio gas power plant in Echague, Isabela from 1994 to 2008.

For SC 59 West Balabac, Alvarez said the PNOC-EC has completed studies on prospective shallow water prospect which includes feasibility and economic viability.

He said PNOC-EC is also considering the drilling for a deepwater prospect in the area.

SC 59 was awarded to PNOC-EC in 2006 and it covers an area of 14,760 square kilometers.

Meanwhile, Alvarez said preparations are being made to conduct a 3D seismic acquisition and processing program in the SC 57 Calamian area.

SC 57, which was awarded to PNOC-EC in in 2005, covers a total area of 7,120 square kilometers in offshore northwest Palawan and is situated around 50 kms northwest from the northwestern-most tip of Busuanga island.

Aside from these three 100-percent owned projects, PNOC-EC is also an active partner in SC 38 Malampaya, SC 58 West Calamian, SC 74 Linapacan and SC 75 Northwest Palawan.

For coal projects, meanwhile, PNOC-EC holds 100 percent participating interest and operatorship in three COCs.

These are COC 41 in Zamboanga Sibugay, COC 122 in Isabela, and the newly awarded COC 204 in Malangas.

Alvarez said PNOC-EC is developing Mine 3 in COC 41 Zamboanga Sibugay, which is expected to be operational by next year.

It is also conducting pre-development activities in Mine 4, as well as studies on other areas within the COC.

For COC 204 Malangas, Alvarez said PNOC-EC has already obtained the certificate of non-coverage from the Department of Environment and Natural Resources, as well as the endorsement of the Sangguniang Bayan of Malangas of exploration activities.

COC 204 covers 2,000 hectares on the southeastern part of the Malangas coal district in Sibugay Peninsula where underground coal mines are extensively worked.

“We are committed to the furtherance of the national objective of energy security through exemplary performance in all our undertakings,” Alvarez said.

“The vision of PNOC-EC, we will be the leading energy exploration and production company in the Philippines by 2030 with global reach and the partner of choice in exploration and production, contributing to the country’s growth and development,” he said.