Consortium eyes new Palawan drilling
The consortium operating Service Contract 55 off Palawan is eyeing to drill two exploration wells between now and 2014, to tap a portion of the estimated 1.8 trillion cubic feet of gas and 567 million barrels of oil within the area.
In a regulatory filing, Australian firm Otto Energy Ltd. said the fourth exploration subphase, which will end on August 5, 2013, will require the drilling of one well. The fifth exploration subphase, which will run from August 2013 to August 2014, will also require the drilling of another well, as part of the group’s work commitment.
The current fourth exploration subphase was supposed to have ended in August this year but was recently extended by the Department of Energy to give the group, led by exploration giant BHP Billiton, more time to conduct the necessary exploration activities.
To recall, BHP Billiton earlier requested the said extension as it was still securing an appropriate ultra-deepwater rig with specialized well control equipment for the proposed drilling activities within the Cinco prospect.
Previously, BHP Billiton, which has a 60-percent stake in SC 55, had wanted to drill a well within the second quarter of this year.
“No specific date for commencement of drilling operations in SC 55 can be given until a rig has been secured; however, Otto maintains its longstanding view that SC 55 holds significant hydrocarbon potential and the company looks forward to seeing the drilling program executed as soon as safely possible,” Otto Energy explained.
BHP Billiton, as the major stakeholder in the SC 55 license, is the operator of the field. Otto Energy, through its wholly owned subsidiary, NorAsian Energy Ltd., also holds a 33.18 percent stake, while the remaining 6.82 percent is held by the Phinma-led Trans-Asia Oil and Energy Development Corp.—Amy R. Remo
