The Service Contract 55 (SC55) oil exploration area in offshore Palawan, which is in operational limbo with the pullout of operator BHP Billiton Petroleum (Philippines) Corp., may be up for grabs in the next contracting round of energy resources.
“If [venture partner] Otto Energy Ltd. has no plan for SC55 then I can cancel it and offer it in PECR5 (Philippine Energy Contracting Round 5),” Energy Secretary Carlos Jericho Petilla said. “But it’s also possible there will be no takers under PECR5.”
Petilla said that if Otto Energy shows interest in proceeding with SC55 exploration, the Department of Energy could extend their drilling work schedule. In that case, SC55 would be out of the PECR5 auction in the first quarter of 2014. Petilla said he will choose the scenario where SC55 can be drilled soonest.
“We don’t know yet how many blocks will be offered in PECR5,” Petilla said. “We’re still trying to inventory those without takers [in PECR4] and those whose takers were disqualified.”
According to the Department of Energy, PECR4 oil contracts were awarded to the consortium of Philex Petroleum Corp., PNOC Exploration Corp., and PetroEnergy Resources Corp. for Area 4 (the gas block within Northwest Palawan Basin and Recto Bank basin); the consortium of Philex Petroleum’s U.K.-registered unit Pitkin Petroleum plc and Philodrill Corp. for Area 5 (the oil and gas block in Northwest Palawan Basin); and Otto Energy unit NorAsian Energy Philippines Inc. for Area 7 (now known as SC73 oil and gas block in the Mindoro-Cuyo Basin). Area 1 (the gas block in Cagayan Basin) is expected to be awarded to Australian firm Planet Gas Pty. by year-end.