Oil exploration giant BHP Billiton has asked the Department of Energy for 18 more months to prepare for the drilling of a deepwater exploration well within the Cinco prospect off Palawan covered by Service Contract 55.
In a regulatory filing, Otto Energy Ltd., which has a 33.18 percent stake in SC55, said that BHP Billiton requested last April 16 to extend the contractual deadline of exploration subphase 4 to Feb.14, 2014 from the current deadline of Aug. 5, 2012.
This was meant to “secure an appropriate ultra deepwater rig with specialized well control equipment that will promote safe drilling operations on the proposed Cinco prospect,” Otto Energy said.
“Availability of such rigs is currently limited and has been considered in the duration of the requested extension. The requested extension is also expected to provide time for post-well analysis prior to commitment to any subsequent sub-phase. No specific date for commencement of drilling operations in SC55 can be given until a rig has been secured,” the company said.
The SC 55 consortium, led by its operator BHP Billiton, had planned to drill a well within the second quarter of this year. This will allow the group to tap a portion of the estimated 1.8 trillion cubic feet of gas and 567 million barrels of oil within the service contract area.
“Otto maintains its longstanding view that SC55 holds significant hydrocarbon potential and the company looks forward to seeing the drilling program executed as soon as is safely possible,” the company noted.