Quantcast
Latest Stories

P2B earmarked for Cadlao wells

By

The group developing the Cadlao block off northwest Palawan is infusing into the project $47 million, or about P2 billion, to drill two production wells by September or October next year.

This will allow Cadlao Development Co. Ltd. (Cadco) and VenturOil Philippines Inc.—which jointly own the Service Contract 6 license—to start producing oil by the end of November next year at a rate of 10,000 to 15,000 barrels per day. Cadlao Development holds an 80-percent interest in the service contract while the balance is owned by VenturOil.

“I think (the Cadlao field) is the only production imminent field in the Philippines right now. Everybody’s drilling but they’re exploring. We’re drilling to produce. We’re going down for the oil and produce it in about a year’s time,” noted VenturOil CEO Francis C. Abad.

On the sidelines of the Upstream Energy 2012 conference, Abad said the $47 million will be used for the drilling of the two wells to be called Cadlao 4 and 5. These wells will be drilled anytime between the end of the third quarter and the beginning of the fourth quarter. The partners will later mobilize the platform for oil production.

“We expect to produce the first barrel at the end of November 2013,” he said.

Six months after the first oil is produced, Cadco and VenturOil are expected to drill one or two additional wells to enable them to tap the estimated 5.9 million reserves in the Cadlao field. These reserves are expected to last about four or five years, according to Abad.

The oil to be produced will be sold locally.

“It’s easy to sell oil. We have to market it to the oil companies in the Philippines, but the objective is to achieve the highest price in the Philippines. There is no set [price] index on the Cadlao oil but I’ve never seen oil of this high quality. This means it will not be hard to sell this oil because it is easier to refine. The better the quality of the oil, the better the yield for refiners,” Abad explained.

Once oil production in Cadlao is underway, Abad said the company would look at the possible exploration of adjacent prospective blocks like the Bonita field.

“We’ve identified a few prospects nearby so that our facilities can reach them. We’re still waiting for the Department of Energy’s approval,” Abad said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter

Other Stories:


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

  • http://profile.yahoo.com/4BJELVW4MOROMLJGVOCASOOV5I Vung T

    This is an excellent news. Sana may kasunod pa. Maraming Pnoy na may expertise sa oil and gas industry, at puede na magamit sa development sa sarili nating bansa. Go.. go.  DOE 



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Gigi Reyes back to face charges
  • Like Passover, Easter festival of deliverance
  • How other faiths in PH observe Holy Week
  • Collector Danny Garcia says Inquirer worth more than news
  • Cardinal Tagle: Start new life with true peace
  • Sports

  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • ‘Pacquiao a great ambassador for basketball’
  • Lifestyle

  • How Zsa Zsa Padilla found Conrad Onglao; Sharon Cuneta played Cupid
  • Palawan favorite getaway of show biz celebrities
  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Entertainment

  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Awarded TV couple brings Jesus’ life to the big screen
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • 5 Filipinos with MERS in UAE reported in stable condition
  • Marketplace