PNOC-EC opens SC59 for fuel search deal
The interpretation resulted in the identification of several prospects and leads in the shallow water area
Daily TribuneThe interpretation resulted in the identification of several prospects and leads in the shallow water area
The Philippine National Oil Company-Exploration Corporation or PNOC-EC, the exploration arm of the Philippine government, is looking for a farm-in partner to operate the majority of the planned oil exploration in offshore Palawan through Service Contract 59.
In an advisory on Monday, PNOC -EC announced that it is searching for interested parties to compete and become the joint venture operator for a 75 percent stake in SC 59.
"PNOC-Exploration Corp. is in search of joint venture partners to pursue the exploration program in Service Contract 59. PNOC-EC holds 100 percent interest in the service contract which was awarded by the Department of Energy on 15 September 2005," the company said in its notice.
P10B for possible gas
Upstream oil companies vying to bid for the partnership have until 19 February 2023 to submit their proposals.
The selection process, according to PNOC-EC, follows Executive Order 80 series of 2019 and its implementing rules and regulations under Department of Energy Circular DC2020-02-0006.
SC 59 covers 14,769 square kilometers offshore, Palawan, west of Balabac Island.
Recent reports said the PNOC-EC earmarked over P10 billion to bankroll its oil and gas exploration and production ventures.
In 2006, PNOC EC acquired about 2,000 km of 2D seismic data to promote the area. In 2009, BHP acquired 75 percent working interest and operatorship. BHP operated the SC 59 until it withdrew in 2013.
As part of their commitment, BHP acquired 3,000 km2 of 3D and 5,000 km of 2D seismic data. Their seismic program, one of the largest by a single company in the country, resulted in several drillable targets.
All seismic commitments under SC 59 have been complied with, including the 3,000 km 2D acquired by PNOC EC in 2016.
The 2016 2D data includes gravity and magnetic data. These data are intended to identify shallow-water drilling targets to complement the deepwater prospects.
However, the DoE suspended the work obligations in SC 59 based on force majeure, until the resolution of the West Philippine Sea maritime dispute.
During the suspension, PNOC-EC said it continued its technical evaluation of the block with the interpretation of 2016 MC2D data. The interpretation resulted in the identification of several prospects and leads in the shallow water area.
In October 2020, the DoE lifted the force majeure state of the contract. Thus, PNOC-EC discusses with the energy department to secure a grant for additional time to fulfill its outstanding commitment.
